Here's How Analysts View Braze Post Q1 Beat

  • Analysts acknowledged Braze, Inc's BRZE Q1 beat amid macro headwinds.
  • Piper Sandler analyst Brent Bracelin maintained Braze with an Overweight and cut the price target from $65 to $42 based on lower growth assumptions given increasing external risks.
  • Despite increasing macro headwinds, BRZE delivered another strong quarter.
  • Increasing investments in direct-to-consumer (DTC) and first-party data stacks have more than offset macro headwinds, giving leadership further optimism about the growth prospects for the remainder of the year. 
  • Net retention metrics remained firm against slowing consumer spending headwinds, reinforcing the all-weather growth prospects inherent in the MAU-based pricing model. 
  • Needham analyst Scott Berg had a Buy rating with a price target of $70.
  • Berg acknowledged the stellar Q1 driven by billings growth and cRPO growth. 
  • All customer metrics remain at the high end, unaffected by any demand deceleration affecting other companies in the firm's coverage. 
  • Management commentary reinstated its view that newer greenfield functionality like what Braze brings can hold up well during a macro downturn. 
  • He did not expect the FCF margin level to persist as the company invested in near-term growth opportunities.
  • Raymond James analyst Brian Peterson maintained an Outperform and slashed the price target from $65 to $40.
  • The Q1 results broadly exceeded expectations, with the full-year growth/margin outlook also moving higher, setting it apart from other software companies that cited currency and/or demand headwinds as drivers for a lower growth forecast. 
  • The revenue growth and billings beat reflect broad-based bookings strength, with a positive return on its growth investments. 
  • He believes that BRZE's omnichannel and streaming architecture represent points of differentiation in attracting new B2C customers and should allow Braze to maintain a superior growth profile for the foreseeable future.
  • JMP Securities analyst Patrick Walravens maintained a Market Outperform and cut the price target from $75 to $52.
  • The re-rating reflects multiple compression amongst peers.
  • Price Action: BRZE shares traded higher by 14.71% at $33.72 on the last check Tuesday.
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