Braze IPO: BRZE stock jumps 36% in market debut. How to buy it?

Follow us on Google News:
 Braze IPO: BRZE stock jumps 36% in market debut. How to buy it?
Image source: VideoFlow,Shutterstock

Highlights

  • Braze, Inc. (BRZE) offered 8 million shares in its IPO.

  • The offering price for the IPO was US$65.

  • The firm reported revenue of US$103.63 million for the six months that ended on July 31, 2021.

The Braze, Inc. (NASDAQ: BRZE) stock traded around 34% above its offering price in its market debut on Wednesday. The company hit a valuation of over US$8 billion in the IPO.

The New York-based technology company offered eight million shares of its common stocks to raise US$520 million. Three years ago, it raised US$80 million in a funding round, which put its valuation at US$850 million.

The Braze platform helps customers gain insights into the consumer market trends and plan marketing strategies accordingly. Its competitors include Adobe Inc. and Salesforce.com Inc.

The company has offices in Berlin, Tokyo, San Francisco, London, and Singapore. The company was co-founded by Bill Magnuson, Jon Hyman, and Mark Ghermezian in 2011. Magnuson and Hyman are the company’s current CEO and chief technology officer, respectively.

The company has over 3 billion monthly active users and 900 employees.

The company said it helped more than 1,000 brands in 50 countries to date. It had 1,119 customers as of July-end, 2021, up from 890 in January-end, as per its SEC filing.

Also Read: Progenity (PROG) stock continues rally, up 21%: Here’s why

The company completed its IPO amid a slew of stock market debuts from the technology industry, reflecting the companies' strong confidence in the market. In addition, the rapid digitalization of businesses, especially in the wake of covid, has helped bolster their market positions.

The lead underwriters for the IPO were Goldman Sachs & Co, J.P. Morgan, and Barclays.

Braze, Inc. was up more than 36% after its debut in the US market

Also Read: UserTesting IPO: Offering price of USER stock revealed

Stock performance and financials:

The Braze stock started trading at US$87.20, up from its offering price of US$65 per share. It rose by 36.58% to US$88.78 from its opening price at 2:27 pm ET, bringing its market cap to US$8.03 billion. Its highest and lowest stock prices were US$92.75 and US$85.76, respectively, on Wednesday.

For the six months ended July 31, 2021, the company's revenue was US$103.63 million, compared to US$67.92 million in the year-ago period. It reported a net loss of US$25.76 million against a loss of US$12.39 million for the six months ended on July 31, 2020.

Also Read: Peloton stock (PTON) gets a lift after 23.9 mn share sale offer

Bottomline

Bill Magnuson said the company would continue to expand the business "to take advantage of the huge addressable market".  Among its customers, some prominent names are German-based Delivery Hero, Credit Sesame, and payment service firm Venmo.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles