Customer engagement solutions provider Braze (BRZE +0.74%) was a blazing-hot stock on Friday, thanks mostly to a very well-received quarterly earnings report. The shares closed the day up over 13%, providing quite a contrast to the 0.3% dip of the S&P 500 (^GSPC +0.81%).
A pair of convincing beats
In its second quarter of fiscal 2026, Braze's revenue came in at just over $180 million. That was nearly 24% higher on a year-over-year basis. Almost all of this total -- nearly $172 million -- derived from subscription revenue, which rose by 23%. The company's take from professional and other services comprised the remainder; at $8.3 million, it grew by 51%.
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On the bottom line, Braze showed even more significant improvement. The company's non-GAAP (generally accepted accounting principles) adjusted net income landed at just under $16.9 million, or $0.15 per share. That was a very robust 85% higher than in the year-ago period.
With those numbers, Braze beat the average analyst estimates, especially for profitability. On average, the pundits tracking the specialty tech stock were modeling less than $172 million for revenue, and only $0.03 per share for adjusted net income.
Braze attributed its better-than-expected performance to an influx of new customers, and expansion of business with existing clients. It also pointed to sustained demand for its artificial intelligence (AI)-enhanced platform.
NASDAQ: BRZE
Key Data Points
New guidance for fiscal 2026
Elsewhere in the earnings release, Braze updated its guidance for the entirety of fiscal 2026. The company believes revenue will amount to $717 million to $720 million for the year, filtering down into an adjusted net profit of $45.5 million to $46.5 million ($0.41 to $0.42 per share).
