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Braze, Inc. (NASDAQ:BRZE) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results overall were credible, with revenues arriving 5.6% better than analyst forecasts at US$115m. Higher revenues also resulted in lower statutory losses, which were US$0.33 per share, some 5.6% smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Braze
Following the latest results, Braze's 17 analysts are now forecasting revenues of US$454.1m in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. Per-share losses are predicted to creep up to US$1.45. Before this earnings announcement, the analysts had been modelling revenues of US$445.1m and losses of US$1.53 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.
It will come as no surprise to learn thatthe analysts have increased their price target for Braze 25% to US$56.00on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Braze, with the most bullish analyst valuing it at US$65.00 and the most bearish at US$48.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Braze's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2024 being well below the historical 37% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that Braze is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.