Customer engagement software provider Braze (NASDAQ:BRZE) reported results ahead of analysts’ expectations in Q2 CY2024, with revenue up 26.4% year on year to $145.5 million. The company expects next quarter’s revenue to be around $148 million, in line with analysts’ estimates. It made a non-GAAP profit of $0.09 per share, improving from its loss of $0.04 per share in the same quarter last year.

Is now the time to buy Braze? Find out in our full research report.

Braze (BRZE) Q2 CY2024 Highlights:

• Revenue: $145.5 million vs analyst estimates of $141.3 million (3% beat)

• Adjusted Operating Income: $4.17 million vs analyst estimates of -$6.91 million (160% beat)

• EPS (non-GAAP): $0.09 vs analyst estimates of -$0.03 ($0.12 beat)

• The company slightly lifted its revenue guidance for the full year to $584 million at the midpoint from $579 million

• EPS (non-GAAP) guidance for the full year is $0.07 at the midpoint, beating analyst estimates by 195%

• Gross Margin (GAAP): 70.2%, in line with the same quarter last year

• Free Cash Flow Margin: 5%, down from 8.4% in the previous quarter

• Net Revenue Retention Rate: 114%, down from 117% in the previous quarter

• Customers: 2,163, up from 2,102 in the previous quarter

• Billings: $128 million at quarter end, up 15.7% year on year

• Market Capitalization: $4.39 billion

“We delivered a great second quarter, demonstrating strong top-line growth while driving efficiency in our business, achieving our first quarter of non-GAAP operating income profitability and non-GAAP net income profitability. Our results demonstrate our effective execution and continued demand for the Braze Customer Engagement Platform,” said Bill Magnuson, cofounder and CEO of Braze.

Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.

Marketing Software

Whether or not companies market their products through social media, all businesses need to meet customers where they are; and increasingly, that is social media. As more and more people use a greater number of social media platforms, social media management software become more valuable to their customers.

Sales Growth

As you can see below, Braze’s 42.3% annualized revenue growth over the last three years has been incredible, and its sales came in at $145.5 million this quarter.

This quarter, Braze’s quarterly revenue was once again up a very solid 26.4% year on year. On top of that, its revenue increased $10.04 million quarter on quarter, a very strong improvement from the $4.50 million increase in Q1 CY2024. This is a sign of acceleration of growth and great to see.