Shares of Braze, Inc. (NASDAQ: BRZE) jumped almost 9% during the extended trading session on June 13, after the company delivered upbeat first-quarter results and also raised its FY2023 guidance above analysts’ expectations.
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Based in the U.S., Braze is a cloud-based software company with a customer engagement platform that powers customer-centric interactions between consumers and brands.
Q1 Beat
Notably, the company reported an adjusted loss of $0.19 per share, two cents ahead of the street’s estimated loss of $0.21. Furthermore, the loss narrowed from the loss per share of $0.30 for the same quarter last year.
Further, revenues jumped 61.8% year-over-year to $77.5 million and also exceeded consensus estimates of $72.57 million. The increase in revenues reflects a surge in Subscription revenues, new customers, upsells, and renewals.
Raised FY2023 Outlook
Based on robust Q1 results, management raised financial guidance for FY2023.
The company now forecasts an adjusted loss in the range of $0.78 to $0.82 per share, while the consensus estimate is pegged at a loss of $0.83 per share. Revenues are forecast to be in the range of $345 million to $349 million, versus the consensus estimate of $340.29 million.
For the fiscal second quarter, the adjusted loss is likely to range between $0.19 per share and $0.20 per share, while the consensus estimate is pegged at $0.21 per share. Revenues are projected to be in the range of $80.5 million to $81.5 million, versus the consensus estimate of $80.13 million.
CEO’s Comments
Braze CEO, Bill Magnuson, commented, “We are off to a great start to fiscal 2023 with the first quarter demonstrating robust demand for the Braze Customer Engagement Platform.”
He further added, “Given our strong momentum, we are raising our 2023 outlook and remain committed to delivering best-in-class customer engagement at scale, while running our business with discipline and efficiency.”
Wall Street’s Take
Following the robust Q1 results, Needham analyst Scott Berg maintained a Buy rating on Braze with a price target of $70 (138.1% upside potential).
Berg believes that the Braze stock is primed for recovery in the coming months.
From the rest of the Street, Braze receives a Strong Buy consensus rating based on 12 unanimous Buys. The average Braze analyst price target of $64.45 suggests upside potential of a whopping 119.2% over the next 12 months.
Conclusion
Braze have lost over half of its market capitalization during the past six months.
However, the quarterly beat as well as the raised guidance perhaps indicate that a turnaround story is in the making, driven by more new business wins from a series of new offerings and enhancements.
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