Braze reported fiscal second-quarter 2027 revenue of $227.2 million, up 26.2% year over year, as the customer engagement software company continued expanding its customer base and saw increasing adoption of its AI products.
Subscription revenue increased to $207.7 million from $171.8 million, while professional services and other revenue increased to $19.6 million from $8.3 million. Remaining performance obligations reached $1.09 billion, including $691.1 million expected within one year.
Braze ended the quarter with 2,789 customers, up from 2,422 a year earlier. The number of customers generating at least $500,000 of annual recurring revenue increased to 361 from 282.
Dollar-based net retention was 110% across all customers and 112% for customers with at least $500,000 of ARR.
The company’s GAAP operating loss narrowed to $18.1 million from $38.8 million, while non-GAAP operating income increased to $22 million from $6 million.
Non-GAAP diluted net income per share increased to $0.19 from $0.15. Operating cash flow increased to $24.2 million from $7 million, while free cash flow climbed to a second-quarter record of $21.7 million from $3.5 million.
Braze highlighted increasing customer adoption of products including BrazeAI Operator, BrazeAI Agent Console and BrazeAI Decisioning Studio.
During the quarter, Braze expanded AI Operator so marketers can create Canvas steps through conversational prompts and deploy pre-built agents. The company also entered into a three-year Strategic Collaboration Agreement with AWS and expanded its integration with Databricks CustomerLake.
Notable new customers and expansions included Chime, Boots Thailand, David Jones, Foxtel Group, Insurify, Omaze UK, Property Finder and Wilson Sporting Goods.
For fiscal 2027, Braze now expects revenue of $910 million to $913 million, non-GAAP operating income of $75.5 million to $76.5 million and non-GAAP diluted EPS of $0.64 to $0.65.
Third-quarter revenue is expected to range from $229 million to $230 million.
KEY QUOTE:
“Our strong second quarter results underscore the essential role Braze plays for brands globally, delivering 26% year-over-year revenue growth alongside improving operating leverage and record second quarter free cash flow,” said Bill Magnuson, Cofounder and CEO of Braze. “As customers across every size, industry, and region demand proof of ROI, adoption of our AI solutions, including BrazeAI Operator™, BrazeAI Agent Console™, and BrazeAI Decisioning Studio™, is accelerating. By consistently turning engagement into measurable business impact, Braze is becoming the global standard for cultivating long-term customer loyalty. We look forward to seeing the industry’s most sophisticated marketers later this month at Forge 2026 in Las Vegas. Our technology is made for this moment, and so are they. All that’s left is to teach them to fly: acting faster, deciding smarter, and creating customer experiences that land.”
Bill Magnuson, Co-Founder and Chief Executive Officer of Braze
