By Dhirendra Tripathi
Investing.com – Braze stock (NASDAQ:BRZE) traded 12% higher Tuesday after the company’s third-quarter revenue rose nearly 63% year-on-year to $64 million, beating estimates.
Gross profit expanded as the cost of revenue grew at a slower pace.
The company that debuted on the Nasdaq last month provides a customer engagement platform powering interactions between consumers and brands.
New customers, renewals and the company being able to sell higher-margin solutions drove the topline. Total customers at the end of October came in at 1,247, up from 841 as of October 31, 2020.
Subscription revenue in the quarter ended October 31 topped $59 million, rising 61%.
The company closed October with remaining performance obligations at $304 million.
It managed to trim its net quarterly loss to $8.72 million from $8.81 million in the October quarter of last year. The loss per share was narrower than analysts estimated.
The company expects fourth-quarter revenue at $65.5 million at the center of its guidance range. Full-year revenue is seen at $233 million at the midpoint of the guidance range.
Braze raised $520 million in its initial public offering that included sale of both existing and new shares. The shares listed on Nov. 17 and climbed to a high of $98.78 on Nov. 22. They have lost over 27% since.
According to a Reuters report last month, the rival to Adobe (NASDAQ:ADBE) and Salesforce.com (NYSE:CRM) counts Germany's online Delivery Hero, consumer finance firm Credit Sesame and PayPal (NASDAQ:PYPL)'s peer-to-peer payment service Venmo as its clients.