We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for the bottom line in the to-be-reported stands at a loss of 3 cents, indicating a 25% contraction from the year-ago reported quarter. The consensus estimate for revenues stands at $141.1 million, indicating 22.6% year-over-year growth. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
The company has an impressive surprise history. The bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, with a surprise of 50.7%, on average.
Image Source: Zacks Investment Research
Lesser Chance of Q2 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for BRZE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by new customers, upsells and renewals. The consensus estimate for subscription revenues is pegged at $136 million, indicating 23.6% year-over-year growth. The consensus mark for professional services and other revenues is pegged at $5 million, flat with the year-ago actual figure.
BRZE Stock Out of Correction Phase
Over the past three months, BRZE shares have risen 21%, although they are down 15.7% year to date. The stock has emerged from a correction phase and began an upward trend around mid-year. This performance aligns with competitors like Salesforce (CRM - Free Report) , which is down 3.8%, and HubSpot (HUBS - Free Report) , which has declined 14% year to date. The broader industry has seen a 21.3% rise during this period.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Investment Considerations for BRZE
BRZE aims to broaden its customer base across sectors like retail, media, entertainment, gaming, health, lifestyle and financial services. By leveraging sales and marketing efforts, BRZE plans to tap into industries undergoing digital transformation, especially where direct-to-consumer models are gaining momentum, such as consumables. The company enhances its platform’s usage by existing clients by introducing new channels and increasing messaging volume. As customers grow more digitally advanced, they invest in additional data management capabilities. BRZE is focused on developing AI tools for better customer data analysis and is committed to expanding partnerships that enhance its offerings.
Wait for the Right Time to Buy
Given BRZE's recent stock performance and the mixed indicators ahead of its fiscal second-quarter earnings report, a hold strategy is advisable. The stock has shown resilience, recovering from its correction phase, and its year-over-year growth in revenues suggests potential upside. However, with the uncertainty around an earnings beat this quarter and the stock's volatility, it may be wise to hold off on new purchases until post-earnings clarity is achieved. Investors should monitor the upcoming report and broader market trends to better assess the stock's future trajectory.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Buy, Sell or Hold Braze Ahead of Q2 Earnings Report?
Braze, Inc. (BRZE - Free Report) will report its second-quarter fiscal 2025 results on Sep. 5, after the bell.
The Zacks Consensus Estimate for the bottom line in the to-be-reported stands at a loss of 3 cents, indicating a 25% contraction from the year-ago reported quarter. The consensus estimate for revenues stands at $141.1 million, indicating 22.6% year-over-year growth. There has been no change in analyst estimates or revisions lately.
The company has an impressive surprise history. The bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, with a surprise of 50.7%, on average.
Lesser Chance of Q2 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for BRZE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
BRZE has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subscription Should be BRZE’s Driver in Q2
We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by new customers, upsells and renewals. The consensus estimate for subscription revenues is pegged at $136 million, indicating 23.6% year-over-year growth. The consensus mark for professional services and other revenues is pegged at $5 million, flat with the year-ago actual figure.
BRZE Stock Out of Correction Phase
Over the past three months, BRZE shares have risen 21%, although they are down 15.7% year to date. The stock has emerged from a correction phase and began an upward trend around mid-year. This performance aligns with competitors like Salesforce (CRM - Free Report) , which is down 3.8%, and HubSpot (HUBS - Free Report) , which has declined 14% year to date. The broader industry has seen a 21.3% rise during this period.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Investment Considerations for BRZE
BRZE aims to broaden its customer base across sectors like retail, media, entertainment, gaming, health, lifestyle and financial services. By leveraging sales and marketing efforts, BRZE plans to tap into industries undergoing digital transformation, especially where direct-to-consumer models are gaining momentum, such as consumables. The company enhances its platform’s usage by existing clients by introducing new channels and increasing messaging volume. As customers grow more digitally advanced, they invest in additional data management capabilities. BRZE is focused on developing AI tools for better customer data analysis and is committed to expanding partnerships that enhance its offerings.
Wait for the Right Time to Buy
Given BRZE's recent stock performance and the mixed indicators ahead of its fiscal second-quarter earnings report, a hold strategy is advisable. The stock has shown resilience, recovering from its correction phase, and its year-over-year growth in revenues suggests potential upside. However, with the uncertainty around an earnings beat this quarter and the stock's volatility, it may be wise to hold off on new purchases until post-earnings clarity is achieved. Investors should monitor the upcoming report and broader market trends to better assess the stock's future trajectory.