Braze, Inc. (BRZE) announced its second-quarter financial results after the market closed on Thursday, exceeding analysts’ expectations on both earnings and revenue.
The company reported earnings of nine cents per share, surpassing the consensus estimate. Revenue reached $145.5 million, exceeding analysts’ predictions by 2.98%. This represents a 26.4% increase compared to the same period last year, fueled primarily by new customer acquisitions, upsells, and renewals. Subscription revenue for the quarter amounted to $140 million, a significant increase from $109.7 million in the second quarter of 2023. Professional services and other revenue reached $5.5 million, slightly higher than the $5.4 million reported in the previous year.
Braze’s remaining performance obligations as of July 31, 2024, were $689.6 million, with $438.3 million considered current, defined by the company as obligations due within a year. The company also reported a non-GAAP gross margin of 70.9%, compared to 70% in the second quarter of fiscal year 2024.
“We delivered a great second quarter, demonstrating strong top-line growth while driving efficiency in our business, achieving our first quarter of non-GAAP operating income profitability and non-GAAP net income profitability,” stated Bill Magnuson, CEO of Braze. “Our results demonstrate our effective execution and continued demand for the Braze Customer Engagement Platform. Looking ahead, we remain steadfast in our pursuit of building the world’s leading customer engagement platform and driving exceptional ROI for our customers and returns for our shareholders.”
Braze provided guidance for the third quarter, anticipating earnings per share between zero cents and a loss of one cent, with revenue projected to be between $147.5 million and $148.5 million. For fiscal year 2025, the company expects earnings per share to fall between six cents and seven cents, a positive outlook compared to the consensus estimate of a seven-cent loss.
Despite these positive financial results, Braze’s stock declined by 5.51% after-hours, trading at $41.70 at the time of publication. This downward movement may be attributed to investor sentiment or other market factors.
