Braze (NASDAQ:BRZE) Updates Q3 2027 Earnings Guidance

Braze (NASDAQ:BRZE) updated its third quarter 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.130-0.140 for the period, compared to the consensus earnings per share estimate of 0.090. The company issued revenue guidance of $229.0 million-$230.0 million, compared to the consensus revenue estimate of $227.7 million. Braze also updated its FY 2027 guidance to 0.640-0.650 EPS.

Braze Price Performance

Shares of BRZE traded down $1.65 on Tuesday, reaching $30.31. The company’s stock had a trading volume of 6,349,289 shares, compared to its average volume of 2,942,216. The stock has a market capitalization of $3.41 billion, a P/E ratio of -27.06 and a beta of 0.88. Braze has a 12-month low of $15.26 and a 12-month high of $37.33. The stock’s 50 day simple moving average is $27.40 and its two-hundred day simple moving average is $23.45.

Braze (NASDAQ:BRZE) last released its earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.03. The company had revenue of $227.23 million for the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative return on equity of 17.52% and a negative net margin of 15.51%.Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. Analysts expect that Braze will post -0.78 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have commented on BRZE shares. Mizuho dropped their price objective on shares of Braze from $40.00 to $32.00 and set an “outperform” rating for the company in a report on Thursday, May 28th. UBS Group reissued an “outperform” rating on shares of Braze in a research note on Thursday, May 28th. The Goldman Sachs Group set a $34.00 target price on shares of Braze and gave the stock a “buy” rating in a report on Wednesday, June 24th. Barclays upped their price target on shares of Braze from $31.00 to $38.00 and gave the company an “overweight” rating in a report on Wednesday, September 2nd. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $35.00 price objective on shares of Braze in a research note on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $36.59.

Insider Activity at Braze

In related news, insider Astha Malik sold 15,724 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $29.57, for a total value of $464,958.68. Following the completion of the sale, the insider owned 326,233 shares in the company, valued at approximately $9,646,709.81. The trade was a 4.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $32.47, for a total value of $1,363,740.00. Following the completion of the transaction, the chief technology officer directly owned 1,143,219 shares in the company, valued at approximately $37,120,320.93. This trade represents a 3.54% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 203,568 shares of company stock worth $6,096,461 in the last 90 days. 12.50% of the stock is owned by corporate insiders.

Braze News Summary

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported adjusted EPS of $0.19, above the $0.16 analyst consensus, while revenue of $227.23 million exceeded expectations of $220.27 million. Revenue grew 26% year over year, and management highlighted improving operating leverage and record second-quarter free cash flow. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Management issued fiscal third-quarter 2027 EPS guidance of $0.13-$0.14, well above the $0.09 consensus estimate, and revenue guidance of $229 million-$230 million versus expectations of $227.7 million.
• Positive Sentiment: Full-year fiscal 2027 guidance was also above analyst forecasts: EPS of $0.64-$0.65 versus $0.35 expected, and revenue of $910 million-$913 million versus $898.4 million expected. The outlook suggests continued growth and stronger-than-anticipated operating performance.
• Neutral Sentiment: Analysts maintained a consensus “Moderate Buy” recommendation ahead of the earnings release. Braze Receives Consensus Recommendation of Moderate Buy
• Negative Sentiment: Despite the earnings and guidance beats, Braze remains unprofitable, reporting a negative net margin of 15.51% and negative return on equity of 17.52%. The stock’s decline on heavy trading volume indicates investors may be taking profits or focusing on valuation and the path to sustained profitability.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd lifted its stake in shares of Braze by 3,650.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock worth $28,000 after purchasing an additional 803 shares during the last quarter. Osaic Holdings Inc. grew its holdings in Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company’s stock worth $44,000 after purchasing an additional 1,404 shares during the last quarter. Quarry LP acquired a new position in shares of Braze during the third quarter worth $46,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Braze during the 4th quarter valued at $52,000. Finally, Quantbot Technologies LP acquired a new position in Braze during the 3rd quarter valued at about $163,000. 90.47% of the stock is currently owned by hedge funds and other institutional investors.

About Braze

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.