Braze (NASDAQ:BRZE) Posts Earnings Results, Beats Expectations By $0.03 EPS

Braze (NASDAQ:BRZE) released its quarterly earnings results on Tuesday. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.03, FiscalAI reports. The firm had revenue of $227.23 million for the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative return on equity of 17.52% and a negative net margin of 15.51%.The firm’s quarterly revenue was up 26.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.15 EPS. Braze updated its FY 2027 guidance to 0.640-0.650 EPS and its Q3 2027 guidance to 0.130-0.140 EPS.

Here are the key takeaways from Braze’s conference call:

• Positive Sentiment: Braze reported strong Q2 results, with revenue up 26% year over year to $227 million, large-customer net retention improving to 112%, and record second-quarter free cash flow of $22 million.
• Positive Sentiment: Management raised both third-quarter and full-year revenue guidance, now expecting fiscal 2027 revenue of $910 million to $913 million, while also raising full-year non-GAAP operating income guidance and targeting approximately 400 basis points of margin improvement.
• Positive Sentiment: AI adoption is accelerating: paid adoption of BrazeAI tools reached roughly one-third of large customers, while Operator usage showed strong engagement and is helping customers build campaigns faster, adopt more channels, and expand use of advanced platform features.
• Positive Sentiment: Competitive takeaways, vendor consolidation, and legacy-platform replacements drove strong bookings, and the new three-year AWS collaboration is expected to expand co-selling, AWS Marketplace procurement, and international distribution.
• Negative Sentiment: Third-quarter operating margin is expected to decline to about 7% because of Forge and other customer-event costs, while premium messaging volumes continue to pressure gross margins; management also noted that CRPO growth moderated due partly to seasonality and the lapping of the OfferFit acquisition.

Braze Trading Down 5.2%

NASDAQ:BRZE opened at $30.31 on Wednesday. The firm has a market cap of $3.41 billion, a P/E ratio of -27.06 and a beta of 0.88. The stock’s 50 day simple moving average is $27.57 and its 200-day simple moving average is $23.54. Braze has a 12-month low of $15.26 and a 12-month high of $37.33.

More Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Q2 results exceeded estimates: Braze reported adjusted earnings of $0.19 per share versus the $0.16 consensus, while revenue rose 26.2% year over year to $227.23 million, above expectations of $220.27 million. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Management raised its outlook: Fiscal 2027 EPS guidance was set at $0.64-$0.65, well above the $0.35 analyst consensus, while revenue guidance of $910 million-$913 million exceeded the $898.4 million consensus. Third-quarter EPS guidance of $0.13-$0.14 and revenue guidance of $229 million-$230 million also topped estimates. Braze Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Improving profitability trends: Braze highlighted record second-quarter free cash flow, improving operating leverage and increasing customer adoption of its AI-powered engagement tools. These factors support the company’s longer-term growth and margin expansion story. Braze Q2 2027 Earnings Call Highlights

Wall Street Analysts Forecast Growth

BRZE has been the subject of several research analyst reports. Stifel Nicolaus set a $30.00 price objective on Braze in a report on Thursday, May 28th. Citizens Jmp reiterated a “market outperform” rating and issued a $35.00 price target on shares of Braze in a research report on Thursday, May 28th. The Goldman Sachs Group set a $34.00 price target on shares of Braze and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Canaccord Genuity Group lowered their price objective on shares of Braze from $40.00 to $35.00 and set a “buy” rating on the stock in a research report on Thursday, May 28th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Braze from $33.00 to $35.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $36.59.

Insider Buying and Selling

In other Braze news, insider Astha Malik sold 15,724 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $29.57, for a total transaction of $464,958.68. Following the completion of the transaction, the insider owned 326,233 shares in the company, valued at approximately $9,646,709.81. This represents a 4.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Edward M. Mcdonnell sold 29,732 shares of the firm’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $31.38, for a total transaction of $932,990.16. Following the completion of the sale, the executive owned 409,630 shares of the company’s stock, valued at $12,854,189.40. This trade represents a 6.77% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 203,568 shares of company stock valued at $6,096,461 over the last three months. 12.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Envestnet Asset Management Inc. lifted its position in Braze by 7.2% in the third quarter. Envestnet Asset Management Inc. now owns 11,080 shares of the company’s stock valued at $315,000 after purchasing an additional 746 shares during the period. Caitong International Asset Management Co. Ltd increased its position in Braze by 3,650.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock worth $28,000 after purchasing an additional 803 shares during the period. MetLife Investment Management LLC increased its position in Braze by 1.9% during the 4th quarter. MetLife Investment Management LLC now owns 47,231 shares of the company’s stock worth $1,620,000 after purchasing an additional 890 shares during the period. Police & Firemen s Retirement System of New Jersey raised its stake in shares of Braze by 5.0% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 23,081 shares of the company’s stock worth $791,000 after buying an additional 1,107 shares in the last quarter. Finally, California State Teachers Retirement System raised its stake in shares of Braze by 1.6% during the 2nd quarter. California State Teachers Retirement System now owns 70,283 shares of the company’s stock worth $1,975,000 after buying an additional 1,113 shares in the last quarter. 90.47% of the stock is currently owned by institutional investors and hedge funds.

About Braze

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.