Braze (NASDAQ:BRZE) shares surged more than 9% in pre-market Friday after the company reported better-than-expected results and raised guidance.
EPS of ($0.13) came in better than the consensus estimate of ($0.18). Revenue grew 31.3% year-over-year to $101.8 million, beating the consensus estimate of $98.99M, driven primarily by new customers, upsells and renewals.
“We are off to a great start to fiscal 2024, delivering impressive results driven by strong demand for the Braze Customer Engagement Platform,” said CEO Bill Magnuson.
For Q2/24, the company expects EPS of ($0.13)-($0.14), compared to the consensus of ($0.16), and revenue of $108-$109M, compared to the consensus of $107.18M.
For the full year, the company expects EPS of ($0.51)-($0.55), compared to the consensus of ($0.55), and revenue of $442.5-$446.5M, compared to the consensus of $436.43M.
Oppenheimer analysts commented:
"F1Q reflects two quarters in a row of strong execution, and estimates are rising in the face of a weakening operating environment."
TD Cowen analysts said the company is well-positioned for a "legacy replacement cycle."
"We think BRZE has stabilized growth execution and is starting to see more benefits from vendor consolidation and legacy replacements as co's scrutinize their spend, and we see lots of new GenAI innovation coming into the platform."
Additional reporting by Senad Karaahmetovic