Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting earnings tomorrow after market close. Here’s what to expect.
Braze beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $160.4 million, up 22.5% year on year. It was a strong quarter for the company, with accelerating customer growth and EPS guidance for next quarter exceeding analysts’ expectations. It added 85 customers to reach a total of 2,296.
Is Braze a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Braze’s revenue to grow 17.1% year on year to $158.6 million, slowing from the 33.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Braze has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.8% on average.
Looking at Braze’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 1.5%, and Upland reported a revenue decline of 10%, topping estimates by 3.1%. Sprout Social traded up 9.8% following the results while Upland was also up 16%.
Read our full analysis of Sprout Social’s results here and Upland’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 10.5% on average over the last month. Braze is up 15.4% during the same time and is heading into earnings with an average analyst price target of $49.70 (compared to the current share price of $36.26).
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