Braze (BRZE) Reports Q2 2023
Braze (BRZE) delivered Q2 results after the close yesterday that beat expectations. Revenue grew 33.6% to $115.1 million, beating by $6.4 million while EPS of -$0.04 was up from -$0.16 in Q2 last year and beat by $0.10.
Management also raised guidance for the year on both the top and bottom lines. Revenue is now expected to grow around 20% to $451.5 - $454.5 million (analysts had expected $445.2 million) and EPS should be around -$0.38 (analysts had been expecting -$0.51).
Following the report, analysts are mostly raising price targets. JPMorgan goes from 45 to 52, Oppenheimer goes from 42 to 52, UBS goes from 44 to 51 and Wells Fargo goes from 53 to 55.
It was a pretty clean quarter. On the conference call management talked about snagging customers from a significant number of the legacy marketing cloud providers and solid adoption of WhatsApp messaging channel. They also mentioned the new AI Recommendation Engine will become its one billable product soon (it’s one of three new AI solutions under the Sage AI umbrella).
Recall that Braze is a customer engagement solution that helps brands interact in real-time with their customers across all the relevant channels. It’s an efficient business and arguably one of the best in the business, with a first-party data ownership advantage, all of which is helping Braze keep current customers while also attracting new ones. BUY
