Braze (NASDAQ:BRZE) stock gained about 15% in yesterday’s extended trading session after reporting stronger-than-expected results for the first quarter of Fiscal 2025. The company’s customer base grew by 13% in Q1, contributing to its strong performance. Buoyed by strong results, BRZE raised its full-year revenue guidance.
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Braze is an American cloud-based software company.
BRZE: Q1 Highlights
The company’s adjusted net loss per share of $0.05 compared favorably with a loss of $0.13 in the year-ago quarter. Also, it surpassed the Street’s estimate of a loss of $0.10. Meanwhile, Q1 revenues increased 33.1% to $135.5 million and beat analysts’ expectations of $131.7 million. The top-line growth was supported by a 34% increase in subscription revenues.
Regarding a key performance metric, remaining performance obligations (the total value of contracted products yet to be delivered) of $657.3 million increased from $477.5 million in the prior year quarter.
Strong Outlook
For Fiscal 2025, BRZE now expects revenue to come between $577 million and $581 million, up from previous expectations of $570 million to $575 million. It reflects a growth of 22.2% to 23.1% from Fiscal 2024. Also, the company forecasts that the adjusted loss will be in the range of $0.06 to $0.1 per share.
For the second quarter, Braze anticipates that revenue will fall between $140.5 million and $141.5 million, up 22% to 23% year-over-year. Moreover, the company expects the adjusted loss to come in the range of $0.03 and $0.04.
Is Braze a Good Stock to Buy?
Overall, Braze has a Strong Buy consensus rating based on 16 Buy and one Hold recommendations. The analysts’ average price target on BRZE stock of $62.50 implies an upside potential of 69.93% from current levels. Shares of the company have declined by 31% year-to-date.
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