Customer engagement solutions provider Braze (BRZE 13.39%) 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 -0.32%).
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.
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).
