Braze Reports Strong Q2 Earnings with Revenue Growth and Raised Guidance
Braze reported strong fiscal second-quarter results for 2027, with revenue rising 26% year over year to $227 million. The company also saw a significant increase in non-GAAP operating income to $22 million and free cash flow of $22 million compared to just $4 million the previous year. Customer count grew by 15%, reaching 2,789 customers as of July 31, with those spending at least $500,000 annually increasing by 28% to 361. Braze also announced a three-year collaboration with AWS focused on co-selling and expanding market reach. CEO Bill Magnuson highlighted strong bookings, competitive wins against legacy marketing platforms, and rising adoption of the company's AI tools among large customers—now at roughly one-third. The firm raised its full fiscal year 2027 revenue guidance to $910 million–$913 million and non-GAAP operating income to between $75.5 million and $76.5 million. The company's trailing 12-month dollar-based net retention was 110% across all customers, with higher retention among larger clients at 112%. Magnuson noted that enterprise customers are beginning to see returns from Braze’s AI tools despite monetization still being in early stages.
Tickers: $BRZE
Topics: ai_adoption customer_growth guidance_increase revenue_growth