NASDAQ$BRZE

Braze Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Braze's Q1 2025 financial results showcased strong performance in a challenging macroeconomic environment, driven by long-term investments and consistent execution.

Braze reported a solid start to fiscal year 2025 with strong first-quarter results. Revenue reached $135.5 million, a 33.1% increase year-over-year. The company is focused on product differentiation, sales and marketing efficiency, and global expansion.

  • Revenue was $135.5 million, up 33.1% year-over-year.
  • Subscription revenue reached $130.1 million, while professional services and other revenue was $5.4 million.
  • GAAP operating loss was $40.1 million, which included $28.3 million in stock-based compensation expense.
  • Non-GAAP operating loss was $10.0 million, improved from a loss of $16.0 million in the same quarter last year.

Headline financials

Total Revenue

$135M

Previous: $102M+33.1%
EPS

-$0.35

Previous: -$0.13-169.2%
Stock Comp. Expense

$28.3M

No prior period
Non-GAAP Gross Margin

67.9%

No prior period
GAAP Gross Margin

67.1%

No prior period
Non-GAAP Operating Margin

-7.4%

No prior period
Customers $500k+ ARR

212

No prior period
Capital Expenditures

-$6.92M

Previous: -$40K-17187.5%
Free Cash Flow

-$42.6M

Previous: -$38.5M-10.6%
Net Income

-$35.6M

Previous: -$38.5M+7.3%
Operating Income

-$40.1M

Previous: -$41.9M+4.3%
Gross Profit

$90.9M

Previous: $69.1M+31.6%
R&D Expense

$34.4M

No prior period
Stock-Based Comp

$28.6M

Previous: $24.2M+18.4%

Revenue & EPS history

Braze · Revenue · Quarterly

$135M

Q1 2025+33.1%vs Q1 2024
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Braze · $124M total across 2 segments · Q3 2024

  • Subscription
    $118M+33.0%
  • Professional Services
    $5.6M+36.6%

Forward guidance

Braze is initiating guidance for the fiscal second quarter ending July 31, 2024, and updating guidance for the fiscal year ending January 31, 2025.

Tailwinds

  • Revenue for Q2 2025 is expected to be between $140.5 million and $141.5 million.
  • Revenue for FY 2025 is projected to be between $577.0 million and $581.0 million.
  • Non-GAAP operating loss for Q2 2025 is expected to be between $(6.5) million and $(7.5) million.
  • Non-GAAP operating loss for FY 2025 is projected to be between $(19.5) million and $(23.5) million.
  • Non-GAAP net loss per share for FY 2025 is expected to be between $(0.06) and $(0.10).

Headwinds

  • Non-GAAP net loss for Q2 2025 is expected to be between $(3.0) million and $(4.0) million.
  • Non-GAAP net loss for FY 2025 is projected to be between $(6.0) million and $(10.0) million.
  • Non-GAAP net loss per share for Q2 2025 is expected to be between $(0.03) and $(0.04).
  • Guidance includes the negative impact of the $0.8M revenue reserve allocated for the service outage in April 2024.
  • Braze has not reconciled its guidance as to non-GAAP operating loss, non-GAAP net loss or non-GAAP net loss per share to their most directly comparable GAAP measure as a result of uncertainty regarding reconciling items such as stock-based compensation expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-4.5%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+22.1%

Q3 2022

Best reaction

-18.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-1.3%+1.2%-0.2%
Q3 2026+17.7%+8.1%-1.9%
Q2 2026+13.5%+8.7%+2.7%
Q1 2026-17.7%-21.2%-20.3%
Q4 2025+2.2%-1.1%-14.9%
Q3 2025-1.2%+0.4%+6.5%
Q2 2025-17.6%-20.6%-28.0%
Q1 2025+1.7%+0.5%+8.3%
Q4 2024-10.4%-13.3%-15.6%
Q3 2024-4.6%-5.5%-16.4%
Q2 2024+3.0%-0.9%-0.5%
Q1 2024+16.0%+22.2%+22.7%
Q4 2023+9.6%+12.7%-6.8%
Q3 2023+0.2%-2.7%+2.3%
Q2 2022-16.7%-19.3%-32.3%
Q2 2023-18.8%-18.8%-28.6%
Q1 2022+14.5%+12.9%+43.5%
Q1 2023-2.1%+1.4%+29.8%
Q4 2020-7.1%-13.0%-7.8%
Q4 2022-11.8%-13.9%-14.5%
Q4 2021+16.9%+19.9%-14.2%
Q3 2021+22.1%+24.1%-8.4%
Q3 2022+22.1%+24.1%-8.4%
Q2 2021
Q1 2021

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