Braze, Inc. announced impressive financial results for the second quarter, surpassing expectations with quarterly earnings of nine cents per share and revenue of $145.5 million, which exceeded analyst consensus estimates by 2.98%. The revenue growth of 26.4% over the previous year was attributed to the acquisition of new customers, upsells, and renewals. Subscription revenue for the quarter totaled $140 million, showing significant growth from $109.7 million in the second quarter of the previous year, while professional services and other revenue slightly increased to $5.5 million from $5.4 million.
As of July 31, 2024, Braze reported remaining performance obligations of $689.6 million, with $438.3 million classified as current obligations, defined by the company as obligations to be fulfilled within a year. The company's non-GAAP gross margin for the quarter stood at 70.9%, reflecting an improvement from 70% in the second quarter of fiscal year 2024. CEO Bill Magnuson expressed satisfaction with the second-quarter performance, emphasizing strong top-line growth, enhanced operational efficiency, and achieving profitability in non-GAAP operating income and net income.
Looking ahead, Braze provided its outlook for the third quarter, forecasting earnings per share ranging from 0 cents to a loss of 1 cent and revenue between $147.5 million and $148.5 million. For fiscal year 2025, the company anticipates earnings per share between six cents and seven cents, differing from the previous estimate of a seven cent loss. Despite the positive financial results, Braze's stock saw a 5.51% decline in after-hours trading, with shares trading at $41.70 at the time of publication.