NEW YORK - Braze, Inc. (NASDAQ: BRZE), a prominent customer engagement platform, has reported a notable beat in its first quarter earnings, surpassing analyst estimates.
The company's adjusted net loss per share stood at -$0.05, which was $0.05 better than the consensus estimate of -$0.10. This positive earnings news, coupled with strong guidance for the second quarter and full fiscal year, has propelled the stock upwards by 12%.
For the first quarter, Braze achieved revenue of $135.5 million, a substantial increase of 33.1% YoY from $101.8 million, driven by a mix of new customer acquisitions, upsells, and renewals. This growth occurred despite a minor setback from a $0.8 million revenue reserve related to a service outage in April.
Subscription revenue reached $130.1 million, up from $97.1 million in the same quarter last year, while professional services and other revenue rose to $5.4 million from $4.6 million. The company's remaining performance obligations as of April 30, 2024, totaled $657.3 million.
Braze's adjusted operating loss saw improvement, coming in at $10.0 million, better than the $16.0 million loss reported in the prior year's first quarter. Meanwhile, the GAAP operating loss was $40.1 million, a slight improvement from a loss of $41.9 million in the previous year. The company's cash and cash equivalents, including restricted cash and marketable securities, stood strong at $487.7 million.
Looking ahead, Braze provided guidance for the second quarter of fiscal 2025, expecting an adjusted EPS between -$0.03 and -$0.04, with the midpoint above the analyst consensus of -$0.04. Revenue projections for the second quarter are between $140.5 million and $141.5 million, with the midpoint surpassing the consensus estimate of $139.8 million.
For the full fiscal year 2025, the company forecasts an adjusted EPS range of -$0.06 to -$0.10, with the midpoint also above the consensus of -$0.09. Revenue guidance for the year is set at $577 million to $581 million, again exceeding the consensus estimate of $574 million.
CEO Bill Magnuson attributed the strong start to fiscal 2025 to the company's long-term investments and consistent execution, even amidst a challenging macro environment. "Our focus remains on product differentiation, sales and marketing efficiency, and strengthening our foundations for future growth," Magnuson stated.
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