Braze Sinks 12% on Soft Q3 EPS Guidance Despite Q2 Beat

Earnings

โดย 24/7 Wall St.·

Summary · why it matters

Braze stock fell 12% to $26.58 after the company guided fiscal third-quarter adjusted earnings below consensus, overshadowing a second-quarter beat and raise. Revenue reached $227.23 million, up 26.2% year over year, with non-GAAP EPS of $0.19 beating the $0.16 estimate, but the Q3 EPS guidance of $0.13 to $0.14 missed Street models. Meanwhile, Klaviyo rose 3% to $18.42, and peers Twilio, HubSpot, and Monday.com showed no sympathy selling, with the iShares Expanded Tech-Software Sector ETF flat at $102.90, indicating a single-name repricing. Bulls point to $1.1 billion in remaining performance obligations, up 27%, and a fresh $50 million buyback, while bears cite softer near-term margins and demand proof of AI leverage. Braze's Q3 margin pressure is tied to its Forge conference, global events, and new sales capacity added ahead of next year.

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