Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting earnings tomorrow after market hours. Here’s what to expect.
Braze beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $145.5 million, up 26.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. It added 61 customers to reach a total of 2,163.
Is Braze a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Braze’s revenue to grow 19.5% year on year to $148.2 million, slowing from the 33.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Braze has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at Braze’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Upland’s revenues decreased 10% year on year, meeting analysts’ expectations, and Sprout Social reported revenues up 20%, topping estimates by 0.6%. Upland traded up 15.9% following the results while Sprout Social was down 13.8%.
Read our full analysis of Upland’s results here and Sprout Social’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 8.1% on average over the last month. Braze is up 18.1% during the same time and is heading into earnings with an average analyst price target of $51.72 (compared to the current share price of $42.19).
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