Earnings Preview: Braze Inc. Aims for Another Quarter of Revenue Beats in Q4 Report

Braze Inc. (NASDAQ: BRZE), a New York-based customer engagement software provider, will announce its fourth-quarter earnings results on Wednesday after the market close. The company, which went public in November 2021, has consistently outperformed Wall Street’s revenue expectations over the past two years, and analysts are closely watching to see if this trend continues.

Analysts Expect Blaze to Report $124.6 Million in Revenue for the Quarter

Analysts polled by FactSet anticipate Braze to report a revenue of $124.6 million for the quarter, representing a 26.3% increase from the same period last year.

However, this marks a slowdown from the impressive 40.1% year-over-year growth recorded in the fourth quarter of the previous fiscal year. The company is also expected to post an adjusted loss of $0.05 per share for the quarter.

Braze reported revenue of $124 million in the previous quarter, surpassing analyst expectations by 5.7% and demonstrating a solid performance momentum.

The company also provided optimistic revenue guidance for the current quarter, exceeding analysts’ projections. However, Braze experienced a slowdown in customer growth and decreased net revenue retention, adding only 53 new customers to reach 2,011.

As the earnings release approaches, market analysts and investors will pay close attention to several key factors. They will scrutinize the company’s revenue growth, particularly compared to its peers in the sales and marketing software segment.

Additionally, the market’s reaction to Braze’s earnings will be of interest, as the company’s stock price has declined by 8.9% over the last month amid a general downturn in the sector. Any updates on customer growth trends, net revenue retention, strategic initiatives, and product innovations, especially those related to AI-powered marketing solutions, will be carefully assessed by the investment community.

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Braze Inc. Stock Brief

Shares of Braze Inc. are currently trading at $49.65, up $0.23 or 0.47% from the previous close. The stock has seen a day’s range between $49.48 and $50.17, contributing to its market capitalization of approximately $4.957 billion.

Over the past year, Braze’s stock has experienced significant volatility, with prices fluctuating between $25.76 and $61.53.

Braze’s stock has underperformed in recent weeks compared to the broader market and its specific sector, with a decrease of 8.9% over the last month. The stock’s beta value of 1.21 over a 5-year monthly period suggests higher volatility than the market average.

Despite these recent declines, analysts maintain a positive outlook for Braze, setting a 1-year target estimate of $69.65 for the stock price. The company’s earnings date aligns with the release of its Q4 earnings report on March 27, 2024. Braze does not offer a dividend to shareholders as a growth-focused investment.

Do you think Braze Inc. was able to outperform expectations in fiscal Q4? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.