Braze (BRZE) Q1 2027 earnings summary

Executive summary

• Achieved fourth consecutive quarter of organic and total revenue growth acceleration, with Q1 revenue of $211 million, up 30.2% year-over-year and 3% sequentially.

• Customer count reached 2,713, up 16% year-over-year, with 349 customers over $500K ARR, up 33% year-over-year; notable new business wins and expansions with major brands across industries.

• Significant product innovations launched, including Braze Creative Studio, BrazeAI Operator, and Agent Console; hosted major industry event in London highlighting AI-driven engagement.

• Announced CFO transition and other management changes, including new General Counsel and CIO appointments.

• Completed a $50 million accelerated share repurchase and maintained strong liquidity with $391.5 million in cash, cash equivalents, and marketable securities.

Financial highlights

• Q1 revenue: $211 million, up 30.2% year-over-year; subscription revenue was $195.2 million, professional services and other revenue was $15.8 million.

• Non-GAAP gross margin was 67.4% (down from 69.3%); GAAP gross margin was 65.7% (down from 68.6%).

• Non-GAAP operating income was $10.5 million (5% margin), up from $2.8 million (1.8%) last year; GAAP operating loss improved to $27.5 million from $40.2 million.

• Non-GAAP net income was $11.4 million ($0.10/share), up from $7.3 million ($0.07/share); GAAP net loss per share was $0.24, improved from $0.34.

• Free cash flow was $26.8 million, up from $22.9 million last year; cash, cash equivalents, and marketable securities totaled $391.5 million.

• Remaining performance obligations were $1,079.2 million, up 28–30% year-over-year.

Outlook and guidance

• Q2 FY2027 revenue guidance: $219.5M–$220.5M (22% year-over-year growth at midpoint); non-GAAP operating income: $17M–$18M (8% margin); non-GAAP net income per share: $0.15–$0.16.

• FY2027 revenue guidance: $895M–$899M (22% year-over-year growth at midpoint); non-GAAP operating income: $70M–$74M (8% margin); non-GAAP net income per share: $0.61–$0.65.

• Management expects continued investment in R&D and sales to drive growth, focusing on expanding within existing customers and internationally.

• Free cash flow is expected to fluctuate with operating expenses and macroeconomic factors impacting collections.

• Current liquidity is expected to be sufficient for at least the next 12 months.