Braze (BRZE) Stock Drops 11% Even After Beating Earnings. Here’s Why
TLDR
- Braze stock fell 11% on Wednesday after reporting Q2 results that beat Wall Street estimates
- Revenue came in at $227 million, up 19% year-over-year, beating the $220 million consensus
- Adjusted EPS of $0.19 beat the $0.15 estimate
- The selloff was driven by weaker-than-expected growth in remaining performance obligations (RPO)
- Braze raised its full-year revenue growth guidance to approximately 23% year-over-year
Braze stock was trading around $30.31 on Wednesday, falling roughly 11% after the company posted Q2 results that topped Wall Street expectations but failed to impress on a key forward-looking metric.
The company reported adjusted earnings of $0.19 per share on revenue of $227.2 million. Analysts had expected $0.15 per share on $220 million in revenue, per FactSet.
Revenue grew 19% year-over-year, with organic revenue up 24% from the same period last year. That organic figure was down from 27% growth the prior quarter.
Non-GAAP operating margin came in at 9.7%, well above the 8.1% consensus and up from 5.0% in the previous quarter. Margin guidance for fiscal 2027 was also raised.
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