Stock Analysis

Analysts Have Made A Financial Statement On Braze, Inc.'s (NASDAQ:BRZE) Full-Year Report

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It's been a sad week for Braze, Inc. (NASDAQ:BRZE), who've watched their investment drop 16% to US$44.30 in the week since the company reported its yearly result. The results overall were pretty much dead in line with analyst forecasts; revenues were US$472m and statutory losses were US$1.32 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Braze

NasdaqGS:BRZE Earnings and Revenue Growth March 30th 2024

Following the latest results, Braze's 18 analysts are now forecasting revenues of US$574.1m in 2025. This would be a substantial 22% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.22. Before this latest report, the consensus had been expecting revenues of US$571.6m and US$1.09 per share in losses. So it's pretty clear the analysts have mixed opinions on Braze even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

The consensus price target held steady at US$67.91, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Braze at US$80.00 per share, while the most bearish prices it at US$58.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Braze's past performance and to peers in the same industry. We would highlight that Braze's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2025 being well below the historical 37% p.a. growth over the last three years. 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 note is the forecast of increased losses next year, suggesting all may not be well at Braze. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$67.91, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Braze going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Braze that you need to be mindful of.

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Find out whether Braze is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.