Braze gains on earnings beat; analysts raise numbers after ‘strong’ results

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Shares of Braze (NASDAQ:BRZE) are up about 4.5% in pre-market after the software company delivered a better-than-expected Q4 earnings report.

Braze reported a loss per share of $0.14 on revenue of $98.7 million, beating the consensus for a loss of $0.19 on revenue of $95.8M.

“In the past year, we continued to strengthen our position as a market leader by finding the opportunities in change, expanding our customer base by 29% and our revenue by nearly 50%,” said Bill Magnuson, co-founder and CEO of Braze.

For this quarter, the company expects to report a loss per share of $0.18-0.19 on revenue of $99M (the midpoint), which compares to the analyst consensus for a loss per share of $0.17 on revenue of $100.5M.

For FY24, Braze expects a loss per share of $0.57, which was in line with consensus. On a more positive note, revenue is seen at $435.5M (the midpoint), which compares to $443.3M.

Finally, Braze said it agreed to acquire North Start, which acts as an exclusive reseller in Australia and New Zealand.

Oppenheimer analysts raised the price target to $36 per share on the Outperform-rated BRZE stock.

“While FY2024 top-line guidance is worse than expectations, we think management is executing well in a challenging macro. The profitable growth story in FY2024 looks achievable given a focus on moderating expenses and increasing productivity,” analysts said in a note.

BTIG analysts said the results were strong as they also hiked the PT to $40 from the prior $36 per share.

“We remain confident in the differentiation of the platform and increasing demand for individualized targeting in the modern, digital world, reinforced by steady usage and data flows on the platform from existing customers, and thus reiterate our Buy rating,” the analysts said.