Braze (NASDAQ): The company reported more than anticipated Q4 revenue and provided positive Q1 guidance. This sent the shares of its stock up almost 1% during premarket trading on Thursday.

Braze reported a quarter-end loss of 18c per share, while analysts expected a loss of 19c per share. According to consensus estimates, the revenue was $70.4 million.

The net loss for the quarter was $42.9million. The Q4 gross margin stood at 67.2%. This is above the consensus projection that it would be 65%.

Braze predicts revenue of between $72 million and $73 million for its next quarter, which is higher than the $70.3 million consensus estimate. The adjusted loss per share for Q1 is expected to be 20c-21c, which compares with 23c.

Cloud-based software firm, Software Inc., expects full-fiscal revenue to be in the $338-$342 million range, exceeding the $330.3 million consensus. For the entire year, adjusted loss per shares will be 80c-84c. This is in contrast to analyst predictions of loss per shared of 92c.

Braze Customer Engagement Platform is in strong demand because of the increasing value and high ROI.

Derrick Wood, Cowen Analyst, reported strong results.

“We are encouraged by continued growth acceleration & think that recent KPIs should enable BRZE to see minimal growth deceleration in FY23, making its initial guide look conservative. “We believe that valuations for 40-50%+ growth companies with minimal cash burn are reasonable at 7.5x EVP/CY23E sales,” Wood stated in a memo sent to clients.

Needham & Company analyst Scott Berg is also positive on results, although he cut the price target to $70.00 per share from $90.00 to reflect multiple compression across the software landscape.

This quarter’s strength was broad-based, with new customers wins, expansions, and renewals. The company also achieved the highest amount of ARR in its initial land (over $3mm). Braze has expanded its partnerships with investors to increase Braze’s transport and data integration capabilities. Braze also launched a more e-commerce-focused offering. Berg stated that the company achieved revenue and profitability levels higher than Street estimates. This will likely be appreciated by the market in the current climate.

The Braze stock price increased by nearly 1% on Thursday, pre-open.

By Senad Karaahmetovic