Braze shares fall 4% despite earnings and revenue beat

NEW YORK - Braze, Inc. (NASDAQ:BRZE) reported better-than-expected second quarter results but saw its shares tumble 4.8% in after-hours trading.

The customer engagement platform provider posted adjusted earnings per share of $0.09 for the second quarter, surpassing the analyst consensus of a $0.03 loss. Revenue grew 26.4% YoY to $145.5 million, beating expectations of $141.3 million.

The company forecast Q3 adjusted earnings between breakeven and a $0.01 loss per share, compared to analyst estimates of a $0.02 loss. Revenue guidance of $147.5-148.5 million was roughly in line with the $148 million consensus.

"We delivered a great second quarter, demonstrating strong top-line growth while driving efficiency in our business, achieving our first quarter of non-GAAP operating income profitability and non-GAAP net income profitability," said Bill Magnuson, cofounder and CEO of Braze.

The company reported non-GAAP operating income of $4.2 million for Q2, compared to a loss of $7.6 million in the same quarter last year. Dollar-based net retention for the trailing 12 months was 114%, down from 120% a year ago.

Braze ended the quarter with 2,163 total customers, up from 1,958 in the prior year period. The company had $504.5 million in cash and marketable securities as of July 31.

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Source: Investing.com