Stock Story -
What Happened: Shares of customer engagement software provider Braze (NASDAQ:BRZE) fell 20.6% in the afternoon session after the company reported second-quarter earnings results. Its billings unfortunately missed, and its net revenue retention decreased.
On the other hand, Braze's revenue, adjusted operating income, and EPS outperformed Wall Street's estimates. It was also good to see its full-year revenue and EPS guidance top expectations.
Overall, this was a weaker quarter for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Braze? Find out by reading the original article on StockStory, it’s free.
What is the market telling us: Braze’s shares are very volatile and over the last year have had 11 moves greater than 5%. But moves this big are very rare even for Braze and that is indicating to us that this news had a significant impact on the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock dropped 11.4% on the news that the company reported fourth-quarter results and provided revenue guidance for next year, suggesting a significant slowdown in demand. Customer growth also slowed during the quarter as the total customer count came in below expectations. An additional negative is that full-year operating loss guidance was worse than expectations.
On the other hand, revenue and EPS exceeded expectations during the quarter. Overall, it was a mixed but weaker quarter for the company.
Braze is down 26.8% since the beginning of the year, and at $36.95 per share it is trading 38.1% below its 52-week high of $59.73 from February 2024. Investors who bought $1,000 worth of Braze’s shares at the IPO in November 2021 would now be looking at an investment worth $394.64.
![Why Braze (BRZE) Shares Are Trading Lower Today](https://d68-invdn-com.investing.com/content/picc57bce764e273a35b517a75bb25ca520.png)