Braze Stock Drops Over 5% After Mixed Earnings Report and Guidance
On Tuesday, Braze (NASDAQ: BRZE) experienced a significant drop in its stock price after reporting mixed quarterly results despite beating revenue expectations. The customer engagement software company reported $227 million in Q2 fiscal 2027 revenue—a 26% year-over-year increase—primarily driven by new customers and upsells, with subscription revenue reaching nearly $208 million (up 21%). Non-GAAP net income also rose by 26%, to over $21 million or $0.19 per share. Despite these strong results, investors focused on the company's guidance for its current quarter and full fiscal year. While Braze raised both revenue and profitability estimates compared to prior forecasts, it fell short of analyst expectations—particularly in adjusted earnings per share (EPS), where it projected a range of $0.13–$0.14 versus an expected $0.16. The stock closed down over 5%, reflecting investor concerns about near-term performance and the broader market's sensitivity to software companies not exceeding high expectations.
Tickers: $BRZE
Topics: financial_performance stock_movement