What Happened?
Shares of customer engagement platform Braze (NASDAQ: BRZE) jumped 3.9% in the afternoon session after the company reported strong second-quarter earnings and raised its full-year outlook, continuing a rally from the previous trading session.
The customer engagement platform's stock initially surged over 13% on Friday after it announced fiscal second-quarter revenue of $180.1 million, a nearly 24% year-over-year increase that beat analyst estimates. The company also posted a significant earnings surprise with an adjusted net income of $0.15 per share, far exceeding the consensus forecast of $0.03. Following the strong performance, Braze boosted its full-year guidance for both revenue and earnings, signaling confidence in its growth trajectory. The positive results prompted favorable reactions from Wall Street, with Piper Sandler raising its price target to $50 and Goldman Sachs reiterating a Buy rating on the stock.
After the initial pop the shares cooled down to $32.65, up 3.8% from previous close.
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What Is The Market Telling Us
Braze’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 12.4% on the news that the company reported upbeat second-quarter results that surpassed Wall Street expectations and issued an optimistic forecast. The company posted revenue of $180.1 million, a 23.8% increase year-over-year, beating analyst forecasts. Braze also delivered a significant earnings surprise with adjusted earnings of $0.15 per share, trouncing the consensus estimate of $0.03. Notably, the company achieved positive adjusted operating income of $6.04 million, a strong signal of improving business efficiency. Looking ahead, Braze lifted its full-year revenue guidance to $718.5 million at the midpoint and raised its full-year adjusted EPS guidance by 152% to $0.42, reflecting management's confidence.
Braze is down 24.8% since the beginning of the year, and at $32.65 per share, it is trading 30.9% below its 52-week high of $47.22 from January 2025. Investors who bought $1,000 worth of Braze’s shares at the IPO in November 2021 would now be looking at an investment worth $349.59.
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