Braze Inc (NASDAQ:BRZE) reduces cash

Braze Inc (NASDAQ:BRZE) stock plunges 15.26% (As on September 5, 11:33:00 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the second quarter of FY 23. Subscription revenue in the quarter was $81.7 million compared to $51.7 million in the second quarter of the fiscal year ended January 31, 2022, and professional services and other revenue was $4.4 million compared to $4.0 million in the second quarter of the fiscal year ended January 31, 2022. Remaining performance obligations as of July 31, 2022 was $410.5 million, of which $274.2 million is current, which we define as less than one year. Non-GAAP Gross Margin was 69.3% compared to 66.7% in the second quarter of the fiscal year ended January 31, 2022. Dollar-based net retention for all customers for the trailing 12 months ended July 31, 2022 and July 31, 2021 was 126% and 125%, respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of $500,000 or more was 130% compared to 135% in the second quarter of the fiscal year ended January 31, 2022. Total customers increased to 1,599 as of July 31, 2022 from 1,119 as of July 31, 2021; 139 of the customers had ARR of $500,000 or more as of July 31, 2022, compared to 82 customers as of July 31, 2021.

Moreover, Non-GAAP operating loss was $17.5 million compared to a loss of $6.5 million in the second quarter of the fiscal year ended January 31, 2022. Free cash flow was $(24.7) million compared to $(5.7) million in the second quarter of the fiscal year end January 31, 2022. Total cash and cash equivalents, restricted cash, and marketable securities was $510.7 million as of July 31, 2022 compared to $518.1 million as of January 31, 2022.

BRZE in the second quarter of FY 23 has reported the adjusted loss per share of 16 cents, beating the analysts’ estimates for the adjusted loss per share of 20 cents. The company had reported the adjusted revenue growth of 54.5 percent to $86.1 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $81.16 million.

Braze, Inc. expects Q3 2023 EPS  be in the range of ($0.22)-($0.23), versus the consensus of ($0.20). Braze, Inc. sees Q3 2023 revenue to be in the range of $90-91 million, versus the consensus of $90.3 million.

Braze, Inc. expects FY2023 EPS to be in the range of ($0.77)-($0.79), versus the consensus of ($0.80). Braze, Inc. expects FY2023 revenue to be in the range of $347-350 million, versus the consensus of $346.83 million.

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