Should You Buy, Sell or Hold Braze Ahead of Q2 Earnings Report?

Core Viewpoint - Braze, Inc. (BRZE) is expected to report a loss of 3 cents for Q2 fiscal 2025, reflecting a 25% decline year-over-year, while revenue is projected to grow by 22.6% to $141.1 million [1] Financial Performance - The consensus estimate for subscription revenues is $136 million, indicating a year-over-year growth of 23.6%, while professional services and other revenues are expected to remain flat at $5 million [7] - The company has a history of exceeding earnings estimates, with an average surprise of 50.7% over the last four quarters [3] Stock Performance - BRZE shares have increased by 21% over the past three months, although they are down 15.7% year-to-date, indicating a recovery from a correction phase [8] - The stock's performance aligns with competitors like Salesforce and HubSpot, which have seen declines of 3.8% and 14% year-to-date, respectively [8] Strategic Focus - The company aims to expand its customer base across various sectors, including retail, media, and financial services, by leveraging digital transformation trends [10] - BRZE is focused on enhancing its platform through new channels and increased messaging volume, as well as developing AI tools for improved customer data analysis [10]