Key Highlights

● Fiscal second-quarter Revenue rose 26.2% to US$227.2 million from US$180.1 million.

● Non-GAAP Operating Income was US$22.0 million, up from US$6.0 million.

● Braze had 2,789 customers, with dollar-based net retention of 110%.

● Fiscal 2027 revenue guidance is US$910.0 million to US$913.0 million.

Latest verified development

Braze, Inc. (NASDAQ:BRZE), the customer-engagement software provider, last reported results on 8 September 2026 for its fiscal second quarter, which ended 31 July. Since then it has made a run of product and partner announcements: a strategic collaboration agreement with Amazon Web Services around its Forge conference at the end of September, and a Leader Placement in the 2026 Gartner Magic Quadrant for Multichannel Marketing Hubs on about 24 September.

Second-quarter results

Revenue was US$227.2 million, up 26.2% from US$180.1 million. Subscription revenue was US$207.7 million, while professional services and other revenue rose to US$19.6 million from US$8.3 million. Remaining performance obligations were US$1,092.5 million, of which US$691.1 million is current. Subscription revenue grew about 20.9%, slower than total revenue growth of 26.2%, because professional services and other revenue more than doubled.

The GAAP operating loss narrowed to US$18.1 million from US$38.8 million, including US$35.7 million of share-based compensation. Non-GAAP operating income was US$22.0 million, up from US$6.0 million. Non-GAAP free Cash Flow was US$21.7 million, against US$3.5 million a year earlier. The GAAP net loss was US$0.17 per share, and non-GAAP diluted Earnings were US$0.19. Chief executive Bill Magnuson said the results underscored "the essential role Braze plays for brands globally".

Customers and guidance

Braze had 2,789 customers, up from 2,422, and 361 customers with annual Recurring Revenue of at least US$500,000, up from 282. Dollar-based net retention was 110% for all customers, against 108% a year earlier, and 112% for the larger accounts.

Guidance is for third-quarter revenue of US$229.0 million to US$230.0 million and non-GAAP operating income of US$16.0 million to US$17.0 million. The midpoint of the revenue range, about US$229.5 million, compares with second-quarter revenue of US$227.2 million. For fiscal 2027 the company expects revenue of US$910.0 million to US$913.0 million, non-GAAP operating income of US$75.5 million to US$76.5 million and non-GAAP Diluted Earnings per Share of US$0.64 to US$0.65. Braze gave no GAAP reconciliation, citing variability in share-based compensation.

Braze services mix and stock-based pay

Professional services and other revenue more than doubled to US$19.6 million from US$8.3 million, lifting total growth to 26.2% against subscription growth of about 20.9%. The gap between the GAAP net loss of US$0.17 per share and non-GAAP earnings of US$0.19 reflects share-based compensation, which was US$35.7 million in the quarter.