What Happened?
Shares of customer engagement platform Braze (NASDAQ: BRZE) jumped 12.4% in the morning session after the company reported upbeat second-quarter results that surpassed Wall Street expectations and issued an optimistic forecast.
The company posted revenue of $180.1 million, a 23.8% increase year-over-year, beating analyst forecasts. Braze also delivered a significant earnings surprise with adjusted earnings of $0.15 per share, trouncing the consensus estimate of $0.03. Notably, the company achieved positive adjusted operating income of $6.04 million, a strong signal of improving business efficiency. Looking ahead, Braze lifted its full-year revenue guidance to $718.5 million at the midpoint and raised its full-year adjusted EPS guidance by 152% to $0.42, reflecting management's confidence.
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What Is The Market Telling Us
Braze’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Braze and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 1.9% on the news that investor anxiety rose ahead of its own earnings report, which was amplified by weak guidance from industry peer Salesforce (CRM).
Salesforce shares declined significantly after the company provided a conservative third-quarter revenue forecast that fell short of expectations. Salesforce's outlook points to broader market uncertainties affecting enterprise software spending, creating negative sentiment across the sector.
Braze is down 29.6% since the beginning of the year, and at $30.54 per share, it is trading 35.3% below its 52-week high of $47.22 from January 2025. Investors who bought $1,000 worth of Braze’s shares at the IPO in November 2021 would now be looking at an investment worth $326.96.
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