Braze: Solid Quarter but Profit Concerns
Here's our initial take on Braze's (NASDAQ: BRZE) financial report.
At first glance, Braze's fiscal first-quarter earnings look pretty solid. The customer engagement platform company beat expectations on both the top and bottom lines. Revenue climbed by nearly 20% year over year with strong growth in both subscription revenue and professional services.
Furthermore, profitability improved significantly. Braze's adjusted gross margin widened by 140 basis points compared to the same period a year ago. Plus, Braze posted an adjusted net profit for the quarter, while it posted a loss in the same fiscal quarter last year. Free cash flow more than doubled year over year to $22.9 million. Additionally, the company's customer count increased by about 10% year over year, and there are 24% more customers spending $500,000 or more annually compared with a year ago.
Source Fool.com
