Braze, Inc. (BRZE) shares are trading lower after the company issued soft EPS guidance for the first quarter and FY25.

Yesterday, the company reported a fourth-quarter FY24 EPS loss of $(0.04), beating the $(0.05) estimate, and sales of $130.96 million exceeded the street view of $124.86 million. 

As of January 31, 2024, total customers increased to 2,044 from 1,770 as of January 31, 2023.

The company held cash and cash equivalents, restricted cash, and marketable securities of $480.0 million as of January 31, 2024.

Outlook: Braze expects first quarter adjusted EPS loss of $(0.11)-$(0.10) vs estimate of $(0.05), revenue of $131 million-$132 million (vs. consensus of $127.82 million).

The company projects FY25 adjusted EPS loss of $(0.12)-$(0.08) vs consensus of $(0.02) and revenue of $570 million-$575 million vs estimate of $572.19 million.

Bill Magnuson, cofounder and CEO said, “Fiscal 2024 marked another significant year for Braze, as we strengthened our position as the leading customer engagement platform and grew revenue by 33%, helping over 2,000 global brands foster growth, loyalty, and retention.”  

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF (NYSE:DAT) and Innovator IBD Breakout Opportunities ETF (NYSE:BOUT).

Price Action: BRZE shares are down 12.5% at $44.25 on the last check Thursday.