Braze (BRZE) Q4 Earnings Report Preview: What To Look For
Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter Braze reported revenues of $124 million, up 33.1% year on year, beating analyst revenue expectations by 5.7%. It was a strong quarter for the company, with an impressive beat of analysts' revenue estimates. Revenue guidance for the next quarter, also exceeded analysts' expectations. On the other hand, its customer growth slowed and its net revenue retention decreased. The company added 53 customers to a total of 2,011.
Is Braze buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Braze's revenue to grow 26.3% year on year to $124.6 million, slowing down from the 40.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5%.
Looking at Braze's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Sprout Social delivered top-line growth of 34.3% year on year, beating analyst estimates by 3.2% and Upland reported revenue decline of 8.4% year on year, exceeding estimates by 0.5%. Sprout Social traded down 5% on the results, Upland was down 2%.
Read our full analysis of Sprout Social's results here and Upland's results here.
Investors in the sales and marketing software segment have had steady hands going into the earnings, with the stocks down on average 0.9% over the last month. Braze is down 8.9% during the same time, and is heading into the earnings with analyst price target of $69.6, compared to share price of $52.8.
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