Braze Inc (NASDAQ:BRZE) stock rose 0.81% (As on December 10, 11:23:59 AM UTC-4, Source: Google Finance) after the company reported better-than-expected third quarter results and raised its full-year outlook. Braze ended the quarter with $493.1 million in cash and marketable securities. The company’s non-GAAP operating loss narrowed to $2.2 million from $8.9 million in the prior year period. Net cash used in operating activities was $11.4 million compared to net cash used in operating activities of $2.0 million in the third quarter of the fiscal year end January 31, 2024. Free cash flow was $(14.2) million compared to $(5.9) million in the third quarter of the fiscal year end January 31, 2024. Total cash and cash equivalents, restricted cash, and marketable securities was $493.1 million as of October 31, 2024 compared to $480.0 million as of January 31, 2024.
Moreover, Subscription revenue in the quarter was $146.3 million compared to $118.4 million in the third quarter of the fiscal year ended January 31, 2024, and professional services and other revenue was $5.8 million compared to $5.6 million in the third quarter of the fiscal year ended January 31, 2024. Remaining performance obligations as of October 31, 2024 was $716.8 million, of which $458.2 million is current, which the company defines as less than one year. Non-GAAP gross margin was 70.5% compared to 71.4% in the third quarter of the fiscal year ended January 31, 2024. Dollar-based net retention for all customers for the trailing 12 months ended October 31, 2024 and October 31, 2023 was 113% and 118%, respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of $500,000 or more was 116% compared to 121% in the third quarter of the fiscal year ended January 31, 2024. Total customers increased to 2,211 as of October 31, 2024 from 2,011 as of October 31, 2023; 234 of the company’s customers had ARR of $500,000 or more as of October 31, 2024, compared to 189 customers as of October 31, 2023.
BRZE in the third quarter of FY 25 has reported the adjusted earnings per share of 2 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cent. The company had reported the adjusted revenue growth of 22.7 percent to $152.1 million in the third quarter of FY 25, beating the analysts’ estimates for revenue of $148.14 million.
For the fourth quarter, Braze expects revenue between $155-156 million and adjusted EPS of $0.05-$0.06, both ahead of Wall Street projections. The company also raised its full-year fiscal 2025 guidance, now seeing revenue of $588-589 million and adjusted EPS of $0.10-$0.11.