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On Friday, JPMorgan analysts adjusted their outlook on Braze Inc (NASDAQ: NASDAQ:BRZE), reducing the company’s price target to $45 from $47 while maintaining an Overweight rating. With a current market capitalization of $3.79 billion, Braze maintains strong financial health with a current ratio of 1.92, according to InvestingPro data. The decision follows Braze’s recent acquisition, which has impacted its financial guidance for the full year.
Braze reported a strong start to the year, with revenue growing 20% year-over-year, surpassing consensus expectations by 2%. The company’s impressive 22.66% revenue growth and robust gross profit margin of 69.44% highlight its operational efficiency. Billings increased by 17% year-over-year, also exceeding expectations by approximately two points. The company noted a slight acceleration in CRPO-based bookings, which grew around 23%, due to a higher volume of renewal dollars in the quarter. However, the quarter’s DBNRR was down 200 basis points sequentially to 109%. For deeper insights into Braze’s financial metrics and growth potential, check out the comprehensive Pro Research Report available on InvestingPro.
Despite global trade concerns, Braze indicated that these have not significantly affected deal cycles. The company experienced broad-based strength across various industry verticals and observed positive momentum in the Americas and EMEA regions.
Braze raised its full-year revenue guidance, even after accounting for the recent acquisition of OfferFit. However, the company’s FY operating margins were adjusted lower by approximately 300 basis points due to the full cost profile of the acquisition. JPMorgan analysts noted that while there may be some investor caution regarding the temporary shift in operating margin expansion, the acquisition is seen as a strategic long-term move.
Overall, the analysts expressed confidence in Braze’s results and long-term prospects, highlighting the company’s continued innovation and its role as a key first-party data set for companies. While currently showing a Fair Value deviation according to InvestingPro analysis, analysts maintain optimistic targets ranging from $38 to $75 per share, suggesting potential upside opportunities.
In other recent news, Braze Inc. reported strong financial results for the first quarter of fiscal year 2026, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.07, compared to the forecasted $0.05, and reported revenue of $162.1 million, exceeding the anticipated $158.66 million. This marks a nearly 20% increase in revenue year-over-year. Additionally, Braze has provided guidance for the second quarter, forecasting revenue between $171 million and $172 million, indicating an 18% growth year-over-year. For the full fiscal year 2026, the company expects revenue between $722 million and $726 million. Braze also recently completed the acquisition of OfferFit, an AI decisioning company, which is expected to contribute approximately 2% to the company’s revenue growth. The acquisition aims to enhance Braze’s customer engagement platform by integrating OfferFit’s reinforcement learning technology. Analyst firms such as Goldman Sachs and Canaccord have shown interest in Braze’s ongoing strategies and market positioning, highlighting the company’s competitive edge in the customer engagement space.
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