Why Cloud-Based Software Company Braze Shares Are Diving Today

Braze, Inc. (BRZE) shares are trading lower after the company issued soft EPS guidance for the first quarter and FY25.

Yesterday, the company reported a fourth-quarter FY24 EPS loss of $(0.04), beating the $(0.05) estimate, and sales of $130.96 million exceeded the street view of $124.86 million. 

As of January 31, 2024, total customers increased to 2,044 from 1,770 as of January 31, 2023.

The company held cash and cash equivalents, restricted cash, and marketable securities of $480.0 million as of January 31, 2024.

Outlook: Braze expects first quarter adjusted EPS loss of $(0.11)-$(0.10) vs estimate of $(0.05), revenue of $131 million-$132 million (vs. consensus of $127.82 million).

The company projects FY25 adjusted EPS loss of $(0.12)-$(0.08) vs consensus of $(0.02) and revenue of $570 million-$575 million vs estimate of $572.19 million.

Bill Magnuson, cofounder and CEO said, “Fiscal 2024 marked another significant year for Braze, as we strengthened our position as the leading customer engagement platform and grew revenue by 33%, helping over 2,000 global brands foster growth, loyalty, and retention.”  

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF DAT and Innovator IBD Breakout Opportunities ETF BOUT.

Price Action: BRZE shares are down 12.5% at $44.25 on the last check Thursday.