Braze (NASDAQ:BRZE) Issues Quarterly Earnings Results

Braze (NASDAQ:BRZE) released its earnings results on Tuesday. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.03, FiscalAI reports. The firm had revenue of $227.23 million during the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative return on equity of 16.09% and a negative net margin of 13.55%.The company’s revenue was up 26.2% compared to the same quarter last year. During the same period in the prior year, the company 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 Stock Down 21.7%

BRZE stock opened at $23.73 on Thursday. The firm has a market cap of $2.67 billion, a PE ratio of -23.04 and a beta of 0.88. The business has a 50 day moving average of $27.58 and a 200-day moving average of $23.58. Braze has a 12-month low of $15.26 and a 12-month high of $37.33.

Braze News Summary

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Strong Q2 results: Braze reported adjusted earnings of $0.19 per share versus the $0.16 consensus estimate, while revenue rose 26.2% year over year to $227.23 million, exceeding expectations of $220.27 million. Management also cited record second-quarter free cash flow and improving operating leverage. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Guidance was raised: Braze increased fiscal 2027 revenue guidance to $910 million-$913 million and adjusted EPS guidance to $0.64-$0.65, above analyst expectations of $898.4 million and $0.35, respectively. Third-quarter revenue and EPS guidance also exceeded consensus estimates. Braze Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Analysts remain constructive: TD Cowen reaffirmed its Buy rating, while DA Davidson maintained Buy with a $40 price target. Stephens, Piper Sandler, BTIG Research and Citizens JMP also reiterated positive ratings or raised targets, citing AI-driven product adoption, enterprise expansion and attractive valuation. TD Cowen Reaffirms Buy Rating
• Neutral Sentiment: Strategic trends are mixed: AI adoption and vendor consolidation could benefit Braze’s platform, but competitive shifts and customer budget scrutiny may affect growth and sales execution. BRZE Q2 Deep Dive
• Negative Sentiment: Profit outlook overshadowed the beat: Investors appeared concerned that expected third-quarter profit growth was softer than hoped, prompting a sharp post-earnings decline. JPMorgan lowered its price target from $35 to $34, although it retained an Overweight rating. Braze Stock Plummets After Disappointing Profit Outlook

Wall Street Analyst Weigh In

A number of brokerages have issued reports on BRZE. BTIG Research reiterated a “buy” rating and set a $35.00 price objective on shares of Braze in a research note on Wednesday. Raymond James Financial lifted their price target on Braze from $27.00 to $33.00 and gave the company an “outperform” rating in a research note on Wednesday. JPMorgan Chase & Co. dropped their price objective on shares of Braze from $35.00 to $34.00 and set an “overweight” rating for the company in a report on Wednesday. Citigroup reissued a “market outperform” rating on shares of Braze in a research note on Wednesday. Finally, Mizuho set a $52.00 price objective on shares of Braze in a research report on Wednesday. Twenty research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $38.21.

Insider Transactions at Braze

In other Braze news, CTO Jonathan Hyman sold 42,000 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the sale, the chief technology officer owned 1,143,219 shares in the company, valued at $37,120,320.93. This represents a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 33,656 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $27.65, for a total value of $930,588.40. Following the sale, the insider owned 278,138 shares in the company, valued at approximately $7,690,515.70. This represents a 10.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 203,568 shares of company stock worth $6,096,461. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Braze

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BRZE. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Braze by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,224 shares of the company’s stock worth $1,415,000 after purchasing an additional 1,700 shares during the last quarter. Intech Investment Management LLC raised its holdings in Braze by 18.8% during the 1st quarter. Intech Investment Management LLC now owns 40,281 shares of the company’s stock valued at $1,453,000 after buying an additional 6,379 shares during the last quarter. Prudential Financial Inc. purchased a new position in Braze during the 2nd quarter valued at about $272,000. Russell Investments Group Ltd. grew its position in shares of Braze by 1,353.0% in the 2nd quarter. Russell Investments Group Ltd. now owns 9,619 shares of the company’s stock worth $270,000 after buying an additional 8,957 shares during the last quarter. Finally, Amundi raised its holdings in shares of Braze by 8.9% during the second quarter. Amundi now owns 32,581 shares of the company’s stock valued at $918,000 after acquiring an additional 2,657 shares in the last quarter. 90.47% of the stock is currently owned by hedge funds and other institutional investors.

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.