Braze (NASDAQ:BRZE) Shares Gap Down - Here's What Happened

Key Points

• Braze shares gapped down after the company’s latest earnings report, opening well below the prior close despite solid results. The stock was last down about 7.3% as investors appeared to react negatively to the post-earnings outlook or take profits.
• Braze reported Q1 EPS of $0.10, matching estimates, while revenue of $211 million beat expectations and rose 30.2% year over year. Management also said organic revenue growth accelerated for a fourth straight quarter, helped by demand for its AI-powered customer engagement platform.
• The company raised its FY2027 revenue outlook to $895 million-$899 million and issued Q2 guidance above Wall Street forecasts. Analysts remain broadly positive, with multiple firms reiterating Buy/Overweight ratings and a consensus price target of $36.05.

Shares of Braze, Inc. (NASDAQ:BRZE - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $24.58, but opened at $22.63. Braze shares last traded at $23.4240, with a volume of 2,003,616 shares changing hands.

More Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported Q1 EPS of $0.10, in line with estimates, while revenue of $211.0 million beat consensus and rose 30.2% year over year. The company also said organic revenue growth accelerated for a fourth straight quarter, supported by demand for its AI-powered customer engagement platform. Article Title
• Positive Sentiment: Braze raised its FY2027 revenue outlook to $895 million-$899 million and guided Q2 EPS and revenue above Wall Street expectations, which signals management confidence in continued growth and improving execution. Article Title
• Neutral Sentiment: Piper Sandler reaffirmed its Overweight rating and set a $27 price target, suggesting modest upside from recent levels and reinforcing a constructive longer-term view. Article Title
• Neutral Sentiment: Short interest data showed no meaningful change, with reported short interest at 0 shares, so there is no evidence that bearish positioning is driving the move. Article Title
• Negative Sentiment: Despite solid results, the stock sold off after earnings, indicating investors may be disappointed by guidance relative to expectations, concerned about profitability, or taking profits after a strong run. Article Title

Analyst Ratings Changes

A number of analysts have issued reports on the company. BTIG Research reissued a "buy" rating and issued a $30.00 target price on shares of Braze in a research report on Tuesday. Citigroup reissued a "market outperform" rating on shares of Braze in a research report on Thursday. Cantor Fitzgerald reissued an "overweight" rating and issued a $38.00 target price on shares of Braze in a research report on Thursday. The Goldman Sachs Group cut their target price on Braze from $45.00 to $40.00 and set a "buy" rating on the stock in a research report on Wednesday, March 25th. Finally, DA Davidson reissued a "buy" rating and issued a $33.00 target price on shares of Braze in a research report on Thursday. Twenty-two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Braze has an average rating of "Moderate Buy" and a consensus price target of $36.05.

Braze Stock Down 7.3%

The business has a 50-day moving average price of $22.02 and a two-hundred day moving average price of $24.54. The firm has a market cap of $2.59 billion, a PE ratio of -18.49 and a beta of 0.78.

Braze (NASDAQ:BRZE - Get Free Report) last posted its earnings results on Wednesday, May 27th. The company reported $0.10 EPS for the quarter, meeting the consensus estimate of $0.10. The firm had revenue of $211.00 million for the quarter, compared to analyst estimates of $205.19 million. Braze had a negative return on equity of 18.75% and a negative net margin of 17.78%.Braze's revenue for the quarter was up 30.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.07 earnings per share. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. On average, equities research analysts predict that Braze, Inc. will post -0.87 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, General Counsel Susan Wiseman sold 35,000 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $20.29, for a total value of $710,150.00. Following the transaction, the general counsel owned 209,424 shares of the company's stock, valued at $4,249,212.96. This represents a 14.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Braze

Large investors have recently bought and sold shares of the business. NBC Securities Inc. purchased a new position in Braze in the fourth quarter valued at $27,000. Caitong International Asset Management Co. Ltd increased its holdings in Braze by 3,650.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company's stock valued at $28,000 after buying an additional 803 shares during the last quarter. Fifth Third Bancorp purchased a new position in Braze in the first quarter valued at $27,000. Kemnay Advisory Services Inc. purchased a new position in Braze in the fourth quarter valued at $52,000. Finally, Osaic Holdings Inc. increased its holdings in Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company's stock valued at $44,000 after buying an additional 1,404 shares during the last quarter. Hedge funds and other institutional investors own 90.47% of the company's stock.

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.

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