Braze stock was up 12% on Tuesday after the business reported third-quarter revenue of $64 million, up roughly 63 % year over year and above expectations.

As the cost of revenue climbed more slowly, gross profit increased.

The Nasdaq-listed firm provides a customer engagement platform that powers conversations between customers and brands.

The top line was driven by new clients, renewals, and the company's ability to sell higher-margin solutions. At the end of October, there were 1,247 customers, up from 841 on October 31, 2020.Braze, Inc - Wikipedia

 

Subscription revenue increased by 61 % to $59 million in the quarter ended October 31.

The company's remaining performance obligations were $304 million at the end of October.

It was able to reduce its net quarterly loss to $8.72 million, down from $8.81 million in the previous quarter. The loss per share was less than analysts had predicted.

The business forecasts revenue of $65.5 million in the fourth quarter, which is in the middle of its guidance range. 
At the midpoint of the guidance range, full-year revenue is expected to be $233 million.
Braze's initial public offering (IPO) raised $520 million by selling both existing and new shares. 
The stock went public on November 17 and reached high of $98.78 on November 22. 
Since then, they've lost over 27% of their value.