Customer engagement platform Braze (NASDAQ: BRZE) will be reporting earnings this Tuesday after market close. Here’s what investors should know.
Braze beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $180.1 million, up 23.8% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ billings estimates and accelerating customer growth. It added 80 customers to reach a total of 2,422.
Is Braze a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Braze’s revenue to grow 21.2% year on year to $184.2 million, slowing from the 22.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Braze has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.6% on average.
Looking at Braze’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 0.6%, and Upland Software reported a revenue decline of 24.2%, topping estimates by 1.2%. Sprout Social traded down 3.7% following the results while Upland Software was also down 11.4%.
Read our full analysis of Sprout Social’s results here and Upland Software’s results here.
Investors in the sales and marketing software segment have had steady hands going into earnings, with share prices flat over the last month. Braze is up 7.8% during the same time and is heading into earnings with an average analyst price target of $45.11 (compared to the current share price of $30.38).
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