Braze (NASDAQ:BRZE) reported better-than-expected Q4 revenue and issued upbeat Q1 revenue guidance, sending its shares up nearly 1% in premarket trading Thursday.
Braze posted a Q4 loss per share of 18c, while analysts were looking for a loss per share of 19c. The company reported fourth-quarter revenue of $70.4 million, topping the consensus estimates of $65.7 million.
Net loss in the period totaled $42.9 million. The gross margin in Q4 stood at 67.2%, above the consensus projection of 65%.
Going forward, Braze expects revenue for this quarter in the range of $72 million to $73 million, beating the consensus estimates of $70.3 million. The company expects a Q1 adjusted loss per share of 20c to 21c, compared with the expected loss per share of 23c.
For the full-fiscal 2023, the cloud-based software company expects revenue in the range of $338 million to $342 million, topping the consensus estimate of $330.3 million. Adjusted loss per share for the full year is estimated to range from 80c to 84c, compared with the analyst expectations of loss per share of 92c.
"Demand for the Braze Customer Engagement Platform remains robust due to the growing value of first-party data and the high ROI enabled by our solution."
Cowen analyst Derrick Wood saw strong results.
"We are encouraged by continued growth acceleration & think that recent KPIs should enable BRZE to see minimal growth deceleration in FY23, making its initial guide look conservative. At ~7.5x EV/CY23E Sales, we think valuations are attractive for a 40-50%+ growth company with minimal cash burn and a bevy of secular tailwinds (1st party data monetization, real-time engagements, multi-channel journeys)," Wood wrote in a memo to clients.
Needham & Company analyst Scott Berg is also positive on results, although he cut the price target to $70.00 per share from $90.00 to reflect multiple compression across the software landscape.
Strength in the quarter was broad-based across new customer wins, expansion and renewals while the company also delivered its highest ARR initial land to date at over $3mm. Product highlights included expanded partnerships and investments to bolster Braze's vertically integrated data ingestion and transport capabilities, as well as a new e-commerce, focused offering. "The company guided both revenue and profitability above Street estimates, which we believe will be viewed favorably by the market given the current environment," Berg said.
Braze stock price is up nearly 1% in pre-open Thursday.
By Senad Karaahmetovic