Braze (BRZE) Q2 2027 earnings summary

Executive summary

• Revenue reached $227.2 million in Q2 FY27, up 26.2% year-over-year, driven by new and existing customers, with net loss narrowing to $18.1 million from $38.8 million and record free cash flow of $21.7 million.

• Customer count grew 15% year-over-year to 2,789, with large customers (ARR $500,000+) increasing 28% to 361 and contributing 65% of total ARR.

• Dollar-based net retention rate was 110% overall and 112% for large customers, up 100 basis points sequentially.

• Accelerated adoption of AI solutions, including Operator, Decisioning Studio, and Agent Console, is driving customer ROI and product-led growth.

• Expanded strategic partnerships, including a three-year agreement with AWS and deeper integration with Databricks.

Financial highlights

• Q2 revenue was $227.2 million, with 91% from subscriptions; non-GAAP gross margin was 68.6%, and GAAP gross margin was 66.8%.

• Non-GAAP operating income was $22 million (9.7% margin), up from $6 million; GAAP operating loss narrowed to $18.1 million from $38.8 million.

• Non-GAAP net income was $21 million ($0.19/share), up from $17 million ($0.15/share); GAAP net loss per share was $0.17.

• Free cash flow reached a record $21.7 million, with $413.9 million in cash and equivalents at quarter end.

• Completed $50 million accelerated share repurchase, buying back 2.1 million shares; $50 million remains authorized.

Outlook and guidance

• Q3 FY27 revenue guidance: $229.0–$230.0 million; non-GAAP operating income: $16.0–$17.0 million; non-GAAP net income: $15.0–$16.0 million.

• Full-year FY27 revenue guidance: $910.0–$913.0 million; non-GAAP operating income: $75.5–$76.5 million; non-GAAP net income: $72.5–$73.5 million ($0.64–$0.65/share).

• Management expects continued revenue growth from customer expansion and international penetration, but notes macroeconomic uncertainty may impact future results.

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