Braze, Inc. (BRZE) stock experienced a significant plunge of 7.52% in after-hours trading on Monday, despite the company raising its guidance for the fiscal year 2025 earlier in the day.

Ahead of the market open, Braze reported a narrower loss and higher revenue for its third quarter ended October 31, 2024. The customer-engagement platform company posted a loss of $27.9 million, or 27 cents per share, compared to a loss of $30.7 million, or 31 cents per share, in the same period last year. Excluding one-time items, the company reported a profit of 2 cents per share, beating analysts' expectations of a 1-cent loss.

Revenue for the quarter rose 23% year-over-year to $152.1 million, surpassing analysts' estimates of $148.2 million. Encouraged by the strong performance, Braze raised its full-year adjusted earnings guidance to between 10 and 11 cents per share, up from its previous forecast of 6 to 7 cents per share. The company also lifted its revenue guidance for fiscal 2025 to a range of $588 million to $589 million, from its prior expectation of $582.5 million to $585.5 million.