BRZE

What a time it’s been for Braze. In the past six months alone, the company’s stock price has increased by a massive 65.4%, reaching $31.41 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is now still a good time to buy BRZE? Or are investors being too optimistic? Find out in our full research report, it’s free. With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Braze’s billings punched in at $249 million in Q1, and over the last four quarters, its year-on-year growth averaged 32.1%. This performance was fantastic, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Braze is efficient at acquiring new customers, and its CAC payback period checked in at 36.2 months this quarter. The company’s relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time. Braze’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 110% in Q1. This means Braze would’ve grown its revenue by 10% even if it didn’t win any new customers over the last 12 months. Braze has a decent net retention rate, showing us that its customers not only tend to stick around but also get increasing value from its software over time. Braze has huge potential even though it has some open questions, and with the recent surge, the stock trades at 3.7× forward price-to-sales (or $31.41 per share). Is now a good time to buy despite the apparent froth? See for yourself in our comprehensive research report, it’s free. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Zoom Communications (ZM) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.33%. A quarter ago, it was expected that this video-conferencing company would post earnings of $1.41 per share when it actually produced earnings of $1.55, delivering a surprise of +9.93%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Zoom, which belongs to the Zacks Internet - Software industry, posted revenues of $1.28 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Zoom shares have added about 21.5% since the beginning of the year versus the S&P 500's gain of 11.8%. While Zoom has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Zoom was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $1.28 billion in revenues for the coming quarter and $6.18 on $5.09 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Braze, Inc. (BRZE), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 8. This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Braze, Inc.'s revenues are expected to be $220.21 million, up 22.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company Welcomes New Chief Product Officer NEW YORK, August 18, 2026--(BUSINESS WIRE)--Braze (Nasdaq: BRZE), the leading customer engagement platform that empowers brands to Be Absolutely Engaging™, announced today that it will release its financial results for the second quarter of the 2027 fiscal year after U.S. financial markets close on Tuesday, September 8, 2026. Braze will host a webcast conference call to discuss its financial results at 4:30 pm ET (1:30 pm PT) on the same day. The webcast will be available under the events section of its Investor site at investors.braze.com. Management Team Updates: Braze Welcomes New Chief Product Officer Pearce Dolan will join the company as Chief Product Officer (CPO) effective August 24, 2026. Pearce will report to Braze Cofounder and Chief Executive Officer, Bill Magnuson. In his role as CPO, Pearce will lead product strategy and vision, accelerating Braze's momentum at the frontier of AI-driven customer engagement. Pearce brings nearly 20 years of experience in product and technology, having held leadership positions at hypergrowth tech startups spanning early stage through $10B+ valuations. He joins Braze from Deel, where he served as Head of Product, scaling the company's flagship product from initial launch to a platform of numerous products spanning HR, IT, Fintech, and Payroll services. Prior to Deel, Pearce was Head of Product at Revolut, Europe's largest fintech company. Originally trained as a developer, he combines technical expertise with a focus on creating intuitive, sophisticated and impactful products. "Pearce has built and led both B2B and B2C products inside high-growth, founder-led companies, and he brings the rare perspective of someone who has been on both sides of customer engagement software, as a builder of it and as a customer of Braze itself," said Bill Magnuson, Cofounder and CEO of Braze. "I'm excited to partner with him as we advance the most ambitious product roadmap in our history." "I'm thrilled to join an organization like Braze that's leading the category and redefining how brands engage with their customers. I look forward to helping the team continue to turn AI disruption into opportunity while advancing Braze’s product vision and delivering powerful, intuitive tools that empower our customers to execute sophisticated cross-channel engagement at scale," said Pearce Dolan, incoming CPO of Braze. About Braze Braze is the leading customer engagement platform that empowers brands to Be Absolutely Engaging™. Braze helps brands deliver great customer experiences that drive value both for consumers and for their businesses. Built on a foundation of composable intelligence, BrazeAI™ allows marketers to combine and activate AI agents, models, and features at every touchpoint throughout the Braze Customer Engagement Platform for smarter, faster, and more meaningful customer engagement. From cross-channel messaging and journey orchestration to Al-powered decisioning and optimization, Braze enables companies to turn action into interaction through autonomous, 1:1 personalized experiences. The company has been consistently recognized as a Leader in marketing technology by industry analysts, and was named a G2 "Best of Marketing and Digital Advertising Software Product" in 2026. Braze was also named a 2026 Best Places to Work by Built In, a 2025 America’s Greenest Companies by Newsweek, and a 2025 Fortune Best Workplace in Technology™ by Great Place To Work®. The company is headquartered in New York with 15 offices across the Americas, EMEA, and APAC. Learn more at braze.com. Forward-looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Braze’s financial outlook for the second quarter of and the full fiscal year ending January 31, 2027. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "hope," "intend," "may," "might," "potential," "predict," "project," "shall," "should," "target," "will" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on Braze’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Braze’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) the extent to which Braze achieves anticipated financial targets; (2) Braze’s ability to realize its broader strategic and operating objectives; (3) unstable market and economic conditions may have serious adverse consequences on Braze’s business, financial condition and share price; (4) Braze’s recent rapid revenue growth may not be indicative of its future revenue growth; (5) Braze’s history of operating losses; (6) Braze’s limited operating history at its current scale; (7) Braze’s ability to successfully manage its growth; (8) the accuracy of estimates of market opportunity and forecasts of market growth and the impact of global and domestic socioeconomic events on Braze’s business; (9) Braze’s ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements or preferences; (10) Braze’s ability to attract new customers and renew existing customers; (11) the competitive markets in which Braze participates and the intense competition that it faces; (12) Braze’s ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, evolving industry standards or changing regulations; (13) Braze’s reliance on third-party providers of cloud-based infrastructure; and (14) Braze's ability to attract, retain, and integrate key personnel, including members of its executive leadership team, and the effects of changes in executive leadership on Braze's business and operations; as well as other risks and uncertainties discussed in the "Risk Factors" section of Braze’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on May 28, 2026, and other subsequent filings Braze makes with the SEC from time to time. The forward-looking statements included in this press release represent Braze’s views only as of the date of this press release and Braze assumes no obligation, and does not intend to update these forward-looking statements, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260818699527/en/ Contacts Investors:Christopher [email protected] Media:Steve [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Braze (BRZE) is back in focus after its first quarter earnings, where revenue of $211 million and a smaller net loss than a year earlier met higher investor expectations, though the share price reaction was more muted. See our latest analysis for Braze. That reaction fits into a mixed picture for Braze, with the share price down 31.83% year to date and the 1 year total shareholder return declining 23.75%, even as the 90 day share price return of 17.78% signals improving short term momentum. The Q1 earnings beat, updated full year revenue guidance and the appointment of a new General Counsel all contributed to a reset of expectations. The stock has recently been trading at US$22.19 after a 7 day share price return decline of 13.62% as investors reassess growth potential against execution risks. If this kind of earnings driven repricing has you looking beyond a single stock, it could be a moment to scan 49 AI infrastructure stocks for other AI infrastructure opportunities that fit your criteria. With revenue growth still solid, annual losses, and the stock trading well below some analysts’ price targets, the big question is whether Braze is now undervalued or if the market is already pricing in future growth. Against Braze's last close at $22.19, the most followed narrative points to a fair value of $34.85, creating a wide gap investors are watching closely. Read the complete narrative. Want to see what kind of revenue ramp and margin shift would justify that higher value, and what future earnings multiple the narrative leans on? The fair value hinges on a set of growth, profitability, and discount rate assumptions that paint a very specific picture of where Braze could be several years from now, and how the stock might be priced if those expectations are met. Result: Fair Value of $34.85 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are real pressure points to watch, including OfferFit integration risks that could weigh on margins, as well as evolving data laws that may push operating costs higher. Find out about the key risks to this Braze narrative. With mixed signals across growth, profitability, and execution risk, how does the balance of concerns and optimism look to you today, and how quickly do you want to act on that view? To weigh the downside against the potential upside with a clear, data led snapshot, start by reviewing the 3 key rewards and 3 important warning signs If you stop with just one stock, you could miss other opportunities that fit your style, so take a few minutes to scan these focused idea lists. Target potential mispricing by reviewing 46 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect them. Strengthen your income strategy by checking out 9 dividend fortresses that offer higher yields with an emphasis on consistency. Reduce portfolio stress by focusing on 63 resilient stocks with low risk scores that carry lower risk scores while still aiming for solid performance. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BRZE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Braze’s first quarter saw robust revenue growth and strong customer momentum, but the market reacted negatively to the results. Management attributed the performance to continued adoption of its AI-powered platform, particularly the Decisioning Studio and Agent Console products. CEO William Magnuson emphasized the company’s ability to capture new enterprise customers and expand existing relationships, noting, “Brands are moving quickly to transform their businesses with AI and to further leverage their first-party data.” Despite these operational strengths, some investors appeared concerned about margin pressures and the impact of product mix changes on gross profit. Is now the time to buy BRZE? Find out in our full research report (it’s free). Revenue: $211 million vs analyst estimates of $205.2 million (30.2% year-on-year growth, 2.8% beat) Adjusted EPS: $0.10 vs analyst estimates of $0.10 (in line) Adjusted Operating Income: $10.47 million vs analyst estimates of $10.63 million (5% margin, 1.5% miss) The company lifted its revenue guidance for the full year to $897 million at the midpoint from $886.5 million, a 1.2% increase Management reiterated its full-year Adjusted EPS guidance of $0.63 at the midpoint Operating Margin: -13%, up from -24.8% in the same quarter last year Customers: 2,713, up from 2,609 in the previous quarter Net Revenue Retention Rate: 110%, up from 109% in the previous quarter Annual Recurring Revenue: $780.8 million vs analyst estimates of $788.7 million (26% year-on-year growth, miss) Billings: $249 million at quarter end, up 33.1% year on year Market Capitalization: $2.89 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Arjun Bhatia (William Blair) asked about the impact of hiring on Decisioning Studio delivery. CFO Isabelle Winkles said headcount ramp has reduced bottlenecks and will accelerate revenue in Q2, particularly in EMEA and APAC. Brett Huff (Stephens) questioned whether AI modules are shortening sales cycles or simply increasing deal size. CEO William Magnuson responded that differentiated AI offerings have improved deal velocity and competitive win rates, especially in enterprise segments. Scott Berg (Needham) sought clarity on the impact of professional services revenue mix on gross margins. Winkles explained that packaging changes shifted revenue from subscriptions to professional services, but margin impacts remain limited by cost optimization strategies. Parker Lane (Stifel) asked how sales hiring and verticalization are tracking and where they will have the most impact. Magnuson confirmed that sales capacity expansion is ongoing and is resonating in enterprise wins, particularly for new AI-driven solutions. Matthew Van Vliet (Cantor Fitzgerald) inquired about the pace of customer adoption for action credits and AI modules. Winkles noted that most customers are now on action credits, with upselling occurring mid-contract as needs grow, supporting net revenue retention gains. In the coming quarters, the StockStory team will be watching (1) the pace of AI product adoption, especially Decisioning Studio and Agent Console, (2) how quickly newly hired sales and engineering teams drive incremental bookings and reduce delivery delays, and (3) the impact of recurring professional services and premium messaging volumes on gross margins. Progress on deeper integration with major data platforms and additional case studies of measurable campaign lift will also be key milestones. Braze currently trades at $26.03, up from $24.58 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Interested in Braze, Inc.? Here are five stocks we like better. Braze reported fiscal Q1 2027 revenue of $211 million, up more than 30% year-over-year, marking its fourth consecutive quarter of accelerating growth. The company raised its revenue and earnings guidance while repurchasing $50 million in shares, signaling management confidence in its financial trajectory. Analysts maintain a Moderate Buy consensus with a $36 price target, and institutions own more than 90% of shares, reflecting strong buy-side conviction. It’s been a long time coming, but Braze Incorporated’s (NASDAQ: BRZE) stock price decline is over, and the rebound appears underway. The pullback has been partly tied to fears that artificial intelligence (AI) could disrupt customer engagement software providers. But Braze’s latest earnings release indicate a rebound underpinned by strength in clients, penetration, and cash flow, suggesting AI is becoming a demand driver rather than just a competitive threat. → Best Buy’s AI Laptop Boost Sparks Hope for a BBY Turnaround Takeaways from the company's fiscal Q1 2027 earnings report include client wins such as Regal Cinemas, Salomon, and Subway—all globally recognized brands—and a Forrester Total Economic Impact report. That report found that Braze’s customer engagement platform delivers more than 450% return on investment (ROI) within the first three years, paying for itself within the first six months of use by energizing brand engagement while reducing marketing and back-end engineering costs. Braze, Inc. had a solid quarter, accelerating growth for the fourth consecutive quarter. → 3 Up-and-Coming Stocks That Could Be the Next NVIDIA Revenue came in at $211 million, up more than 30% year-over-year (YOY) and 280 basis points better than expected. Strength was driven by customers, up 16% YOY, and penetration, with the net retention rate up 110% YOY. Client growth was driven by large customers contributing more than $500,000 in annual recurring revenue (ARR), which increased 33% YOY, underpinned by Subscriptions. Subscriptions are the core segment, accounting for nearly 93% of revenue, but Pro Services was also strong, up more than 100% YOY, driven by demand for Braze’s AI-enabled tools. That mix matters because Braze is not simply selling more seats; it is adding higher-value implementation, customer success, and AI-enabled capabilities around its core platform. → These 3 CLO ETFs Target a Niche Corner of the Fixed-Income Market Margin news was mixed, but overall bullish for investors, as it aligns with the company’s cash flow and capital return outlook. Margin narrowed at all levels, more sharply than anticipated in some comparisons, but the impact is mitigated by the cause and the company’s financial position. While sales, marketing, research, and development expenses all increased, they underpin results and are controllable. Other costs, including general and administrative, are also controllable and declined during the period. The net result was $28.1 million in operating cash flow, a 16.5% gain compared to last year, $26.8 million in free cash flow, and 10 cents in adjusted earnings. The earnings per share (EPS) of 10 cents was only as expected, despite the top-line strength, but up more than 40% YOY, enabling a confident capital return. Management followed through on its accelerated share repurchase authorization, buying $50 million in shares during the quarter. The company has $50 million left and expects to nearly offset the full impact of share-based compensation this year. Guidance was also good. The company raised its outlook for revenue and earnings, putting the midpoint in alignment with the consensus. While not typically a strong catalyst, the news was not as bad as expected. The likely outcome is that Braze continues to perform well as the year progresses, leading analysts to adopt a more bullish posture. Analyst response was tepid, with a few price target reductions and numerous reaffirmed targets. The consensus price forecast of $36 implies nearly 30% upside, signaling a deep-value opportunity for investors. More importantly, the revisions suggest the sentiment downtrend is over, setting the stage for improvement as the year progresses and serving as a catalyst for higher stock prices. Until then, MarketBeat data show that Braze coverage is increasing, and the 24 tracked analysts have a high conviction in the Moderate Buy rating. The Buy-side bias is more than 90% and reflected in the institutional activity. Institutional groups own more than 90% of the stock and have accumulated it at an aggressive pace over the trailing 12-month period. The likely outcome is that they continue to buy and hold until higher prices are available. How high can the BRZE share price get? The valuation metrics suggest about 100% upside is possible. The current-year P/E is high, but assuming the company meets its outlook, the stock will trade at only 13x the 2030 forecast. In this scenario, Braze shares can easily advance by 100% to the 26x level, as longer-term forecasts suggest an even deeper value is present. Chart price action has been bullish following the release. Braze’s market confirmed support at a cluster of moving averages and then advanced above a critical support target. The setup in June suggests that a move toward the next critical resistance level near $32.50 is likely and may be reached by the end of the month. A move above $32.50 would strengthen this market. Braze’s biggest risks are macroeconomic headwinds and their impact on IT spending, but it doesn’t appear to be a significant problem now. Other threats include the potential commoditization of AI services due to intense competition from larger players. The article "Braze Blazes Ahead on Q1 2027 Earnings Beat, Raised Guidance" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

This article first appeared on GuruFocus. Revenue: $211 million, up 30% year-over-year and 3% from the prior quarter. Non-GAAP Operating Margin: Improved by over 300 basis points year-over-year. Free Cash Flow: Record $27 million in the quarter. Dollar-Based Net Retention: Improved to 110%, with large customer cohort at 111%. Customer Additions: Net increase of 104 sequentially, up 16% year-over-year. Large Customers ($500,000+ annually): Increased by 16 sequentially, up 33% year-over-year. Non-GAAP Gross Margin: 67.4% for the quarter. Non-GAAP Operating Income: $10.5 million or 5% of revenue. Non-GAAP Net Income: $11.4 million or $0.10 per share. Cash and Equivalents: Approximately $392 million at quarter-end. Q2 Revenue Guidance: $219.5 million to $220.5 million, approximately 22% growth year-over-year. Full Fiscal Year 2027 Revenue Guidance: $895 million to $899 million, approximately 22% growth year-over-year. Warning! GuruFocus has detected 3 Warning Sign with BRZE. Is BRZE fairly valued? Test your thesis with our free DCF calculator. Release Date: May 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Braze Inc (NASDAQ:BRZE) reported a 30% year-over-year revenue increase to $211 million, marking the fourth consecutive quarter of organic revenue growth acceleration. The company achieved a record free cash flow of $27 million in the quarter, demonstrating strong cash generation capabilities. Braze Inc (NASDAQ:BRZE) saw a 16% year-over-year increase in net customer additions, with significant growth in customers spending $500,000 or more annually. The company is experiencing strong early adoption of its AI tools, such as BrazeAI Operator and BrazeAI Console, which are enhancing customer engagement capabilities. Braze Inc (NASDAQ:BRZE) raised its revenue guidance for the second quarter and the full fiscal year, indicating confidence in continued growth and market momentum. The company faced a bottleneck in its Decisioning Studio due to a lack of full-time employees, which delayed start dates and impacted revenue growth. There is a potential risk of increased competition in the AI-driven customer engagement space, which could impact Braze Inc (NASDAQ:BRZE)'s market position. The departure of Chief Financial Officer Isabelle Winkles introduces uncertainty in leadership during a critical growth phase. Braze Inc (NASDAQ:BRZE) experienced a decrease in non-GAAP gross margin year-over-year, primarily due to higher premium messaging volumes and increased headcount costs. The company is still in the process of ramping up hiring to meet demand, which could strain resources and impact operational efficiency in the short term. Q: How did the bottleneck in Decisioning Studio impact Braze's performance, and what steps have been taken to address it? A: Isabelle Winkles, CFO, explained that while the specific impact on Q1 wasn't broken out, the hiring momentum has been positive. Braze has increased headcount in regions like EMEA and APAC, which were previously lacking capacity, to address the bottleneck and support growth in Decisioning Studio. Q: How are customers adopting AI capabilities, and where does customer engagement rank in their AI priorities? A: CEO Bill Magnuson noted that AI adoption is transforming marketer workflows and improving personalization. Customers are prioritizing AI in customer engagement as it enhances productivity and drives better results. Braze's AI solutions are being integrated into existing workflows, making them a key part of broader AI transformation agendas. Q: How is Braze's AI innovation impacting sales cycles and competitive positioning? A: Bill Magnuson highlighted that AI innovation is leading to higher deal velocity and competitive win rates. The differentiation provided by Braze's AI roadmap is creating more efficient sales cycles, and the company is seeing strong alignment with partners and customers, which is helping to drive sales. Q: What is the impact of professional services revenue on Braze's financials, and how does it affect gross margins? A: Isabelle Winkles explained that changes in packaging and the addition of forward-deployed engineers have contributed to an increase in professional services revenue. While there is some impact on gross margins, messaging costs remain the primary component affecting margins. Q: How is Braze addressing the rise in US carrier fees for SMS, and what are the implications for gross margins? A: Isabelle Winkles stated that Braze passes carrier fee increases directly to customers, maintaining consistency in their approach. While premium messaging channels impact gross margins, the company manages these costs by passing them on to customers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a fourth consecutive quarter of organic revenue growth acceleration, driven by robust enterprise bookings and competitive takeaways from legacy platforms. Performance attribution is centered on the market's preference for AI-driven solutions paired with high-performance first-party data activation, which legacy architectures struggle to handle. The Braze Data Platform is increasingly positioned as the context engineering layer for AI, allowing brands to leverage first-party data at massive scale for real-time engagement. Operational efficiency improved with non-GAAP operating margin expanding by over 300 basis points year-over-year while achieving record free cash flow of $27 million. Strategic positioning is reinforced by the 'composable AI' architecture, which integrates agentic capabilities directly into existing marketer workflows to drive both productivity and revenue. Large customer momentum remains strong, with customers spending $500 thousand or more increasing 33% year-over-year, now contributing 65% of total ARR. Full-year fiscal 2027 revenue guidance was raised to $895 million to $899 million, assuming continued momentum in enterprise legacy replacements. Management reiterated the target of 400 basis points of non-GAAP operating margin expansion for the fiscal year, driven by disciplined investment and scale. Decisioning Studio revenue is expected to grow 15% to 20% sequentially in Q2 as the company resolves previous delivery personnel bottlenecks. Sales capacity expansion remains a priority for the first half of the year to support anticipated growth in the second half, particularly within verticalized enterprise teams. The product roadmap focuses on enhancing self-serve features for AI tools and expanding channel support for Content Optimizer to include SMS, MMS, and RCS. CFO Isabelle Winkles is stepping down after six years; a formal search for a successor is currently underway. Gross margins were impacted by higher premium messaging volumes and the addition of headcount for Decisioning Studio delivery. A supply constraint in Q4 forced the company to limit Decisioning Studio bookings and delay start dates, though hiring has now cut these delays in half. The company transitioned to 'Action Credits' for messaging and separately SKUed customer success entitlements to provide better transparency and alignment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has successfully accelerated the hiring of forward-deployed delivery personnel, cutting deployment wait times from over four months to approximately two months. The company is developing self-serve capabilities and an automated QA agent to reduce the reliance on manual personnel for future deployments. Braze acts as a 'context engineering' layer that compresses and designs data before it reaches LLMs, allowing for the use of faster, cheaper models. This architecture prevents 'off the rails' AI behavior by providing operational guardrails and specific first-party context that general-purpose tools lack. The jump in professional services revenue is primarily an accounting reclassification of customer success entitlements that were previously bundled in subscription fees. Approximately 85% of professional services revenue is recurring, bringing the total recurring revenue mix to approximately 99%. AI is enabling small, agile teams to handle complex cross-channel strategies that previously required large specialist departments. Management believes human ingenuity remains critical for strategic judgment, even as AI automates the 'drudge work' of campaign execution.

Interested in Braze, Inc.? Here are five stocks we like better. Braze posted strong Q1 results with revenue of $211 million, up 30% year over year, marking its fourth straight quarter of accelerating organic and total revenue growth. Management said gains came from expansions, renewals, new business, and early contribution from BrazeAI Decisioning Studio. Customer retention and large-account growth improved, with total customers rising to 2,713 and dollar-based net retention increasing to 110%. Customers spending at least $500,000 annually grew 33% year over year, and these larger accounts now make up 65% of annual recurring revenue. Braze raised guidance for fiscal 2027 after the strong quarter, calling for full-year revenue of $895 million to $899 million and continued operating margin expansion. The company also reported record free cash flow of $27 million and said CFO Isabelle Winkles is departing, with a search underway for her replacement. Braze Stock Rallies as Revenue Beats, Buybacks Begin, and Outlook Jumps Braze (NASDAQ:BRZE) reported a strong start to fiscal 2027, with executives pointing to accelerating revenue growth, improving retention and rising demand for its AI-driven customer engagement tools. The company generated fiscal first-quarter revenue of $211 million, up 30% year over year and 3% from the prior quarter. Co-founder and Chief Executive Officer Bill Magnuson said the quarter marked Braze’s “fourth straight quarter of organic and total revenue growth acceleration.” → Voya Financial Grows Earnings Across All 3 Business Segments Missed NVIDIA? Braze Might Be the Next AI Stock Breakout Chief Financial Officer Isabelle Winkles said revenue growth was driven by “existing customer contract expansions, renewals, and new business.” Braze AI Decisioning Studio contributed $5.7 million of revenue in the quarter, implying organic year-over-year growth of 26.7%, according to Winkles. Braze ended the quarter with 2,713 customers as of April 30, 2026, up 16% year over year and up 104 sequentially. The company’s large-customer base also continued to expand. Customers spending at least $500,000 annually rose 33% year over year to 349, and those customers represented 65% of total annual recurring revenue, compared with 62% a year earlier. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Why These 3 Tech Stocks Deserve Your Attention in Q4 Magnuson said bookings were “robust,” citing competitive takeaways, particularly in enterprise accounts. He also said Braze completed six deals worth more than $1 million and increased its number of eight-figure customers to five. Dollar-based net retention improved to 110% across all customers, up about 100 basis points sequentially. For large customers, dollar-based net retention rose to 111%, also up about 100 basis points from the prior quarter. → Quantum Stocks Just Got a Lifeline—Who Benefits Most? Notable new business wins and expansions included Bondora Group, ClassPass, Denny’s, Deuna, Kueski, NRMA, Regal Cinemas, Salomon and Subway, according to Magnuson. He also noted a “milestone new business win” with a prominent AI lab, which he said expanded Braze’s presence in high-scale, data-intensive workloads. Much of the call centered on Braze’s AI roadmap, including BrazeAI Operator, BrazeAI Agent Console and BrazeAI Decisioning Studio. Magnuson said Operator and Agent Console reached general availability early in the quarter, ahead of schedule, and that “hundreds of customers” are already using the tools. Magnuson framed Braze’s AI strategy around first-party data, real-time processing and customer engagement workflows. He said customers are looking for tools that operate “directly on their first-party data, inside their existing workflows, and against their specific goals.” The company highlighted several customer examples: Cleo used BrazeAI Operator to rebuild a member welcome series, with Magnuson citing an 81% decline in unsubscribes, a 97% drop in opt-outs on the first email and a 284% increase in app opens. Luxury Escapes used BrazeAI Agent Console to route new users into welcome cohorts based on behavioral signals, producing a 10% lift in revenue per user, a 7% increase in total transaction value and a 6% increase in purchase volume. A large hotel franchisee used BrazeAI Decisioning Studio to replace a manual testing process with continuous automated experimentation, achieving double-digit increases in click-through rate. In the question-and-answer session, Magnuson said AI is affecting both marketer productivity and personalization performance. He said Braze is seeing more campaign creation and experimentation as customers use Operator and other agentic tools, but that increased output is also raising demand for quality assurance and workflow automation. Winkles said Braze had faced supply constraints in the prior quarter that forced the company to limit Decisioning Studio bookings in some regions and delay start dates by several months. She said Braze has since accelerated hiring and ramping of forward-deployed delivery personnel, enabling faster Decisioning Studio start dates. As a result, Winkles said Braze expects Decisioning Studio revenue in the second quarter to grow 15% to 20% sequentially from the first quarter. In response to analyst questions, Magnuson said some Decisioning Studio deployment start dates had been pushed out by more than four months at the end of the fourth quarter, depending on region. He said Braze cut that delay “about in half” during the first quarter through hiring, ramping and onboarding improvements. Non-GAAP gross profit was $142 million, representing a non-GAAP gross margin of 67.4%, down from 69.3% a year earlier. Winkles said the decrease was primarily due to higher premium messaging volumes and headcount tied to BrazeAI Decisioning Studio. Total operating expenses were $132 million, or 62% of revenue, compared with $110 million, or 68% of revenue, in the prior-year period. Non-GAAP operating income was $10.5 million, or 5% of revenue, compared with $2.8 million, or 2% of revenue, a year earlier. Non-GAAP net income attributable to Braze shareholders was $11.4 million, or $0.10 per share, compared with $7.3 million, or $0.07 per share, in the prior-year quarter. Braze ended the quarter with approximately $392 million in cash equivalents, restricted cash and marketable securities. Cash provided by operations was $28 million, and free cash flow was a record $27 million, up from $23 million a year earlier. Total remaining performance obligation was $1.1 billion, up 30% year over year and 4% sequentially. Current RPO was $670 million, up 28% year over year. For the second quarter of fiscal 2027, Braze guided for revenue of $219.5 million to $220.5 million, representing approximately 22% growth at the midpoint. The company expects non-GAAP operating income of $17 million to $18 million and non-GAAP net income per share of $0.15 to $0.16. For the full fiscal year, Braze expects revenue of $895 million to $899 million, also representing approximately 22% growth at the midpoint. The company guided for non-GAAP operating income of $70 million to $74 million and non-GAAP earnings per share of $0.61 to $0.65. Magnuson said Braze is raising revenue guidance for both the second quarter and full year while reiterating that it remains on track to deliver 400 basis points of operating margin expansion for the fiscal year. The call also addressed Winkles’ planned departure. Magnuson said Braze is actively engaged in a CFO search and thanked Winkles for her work over the past six years, including guiding the company through its IPO and helping scale the business. Winkles said building and leading the finance team at Braze had been “one of the most rewarding experiences” of her career and said she was “excited to witness Braze’s continued success ahead.” Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale. The core functionality of Braze's platform centers on data-driven segmentation, customer journey orchestration and real-time analytics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Braze Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 27, 2026 at 4:30 p.m. ET Chief Executive Officer — William Magnuson Chief Financial Officer — Isabelle Winkles Need a quote from a Motley Fool analyst? Email [email protected] Bill Magnuson, and our Chief Financial Officer, Isabelle Winkles. We announced our results in a press release issued after the market closed today. Please refer to the Investor Relations section of our website at investors.braze.com for more information and a supplemental presentation related to today's earnings announcement. During this call, we will make statements related to our business that are forward looking under federal securities laws and the safe harbor provisions of the Private Securities Litigation Reform Act of 2000. These statements include, but are not limited to, statements regarding our financial outlook for the second quarter and the fiscal year ended January 31, 2027, the anticipated benefits from and product advancements due to the combination of Braze and ongoing developments in Braze AI technology, our anticipated customer behaviors, including vendor consolidation and replacement trends, and their impact on Braze, our potential market opportunity and our ability to effectively execute on such opportunity, and our long term financial targets and goals including our expectations regarding our profitability framework. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations and reflect our views only as of today. We assume no obligation to update any such forward looking statements. A discussion of the material risks and uncertainties that could affect our actual results, please refer to the risks identified in today's press release and our SEC filings both available on the Investor Relations section of our website. I would also like to remind you that today's call will include certain non GAAP financial measures used by management to evaluate our ongoing operations and to aid investors in further understanding the company's fiscal first quarter 2027 performance in addition to the impact these items have on the financial results. Please refer to the reconciliations of our non GAAP financial measures to the most directly comparable financial measures calculated in accordance with US GAAP included in our earnings release under the Investor Relations section of our website. The non GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with US GAAP. And now I would like to turn the call over to Bill. William Magnuson: Thank you, Christopher, and good afternoon, everyone. We are off to a great start in fiscal 2027. We are reporting a quarter that demonstrates our market leadership and go to market momentum. We delivered our fourth straight quarter of organic and total revenue growth acceleration, generating $211 million of revenue, which is up 30% year over year and 3% from the prior quarter. We also continue to realize operating efficiencies, improving non GAAP operating margin by over 300 basis points year over year, and we generated both strong operating cash flow and a record free cash flow amount of $27 million in the quarter. Trailing 12-month dollar based net retention also continued to improve, rising another 100 basis points to 110%. While inflecting positively with our large customer cohort as well, rising 100 basis points to 111%. We are pleased to raise our revenue guidance for the second quarter for the full year, and to reiterate that we are on track to achieve the 400 basis points operating margin expansion promised for the fiscal year. The strong market momentum and buyer trends that we experienced at the end of fiscal year 26 carried into the first quarter of fiscal 27. Brands are moving quickly to transform their businesses with AI and to further leverage their first-party data and direct to consumer relationships. Q1 bookings were robust, driven by competitive takeaways particularly in the enterprise. Net customer additions increased by 104 sequentially, up 16% year over year, and customers spending $500 thousand or more annually increased by 16 sequentially, up 33% year over year. And our $1 million-plus customer count rose by 27% year over year, while we achieved $6 million-plus deals and expanded our 8-figure customer count to 5. Notable new business wins and existing customer expansions include Bondora Group, ClassPass, Denny's, Deuna, Kueski, NRMA, Regal Cinemas, Solomon, and Subway. In addition, we achieved a milestone new business win with a prominent AI lab, further expanding our presence across high scale data intensive workloads. Our upsell motion was also strong as customers adopted additional channels deepened data platform integrations, and experimented with new and enhanced Braze AI tools such as operator and agent console. Braze is moving fast on the leading edge of frontier AI technologies. And that pace of innovation is what enterprises globally are demanding. Positioning us to become the standard for customer engagement. The legacy replacement cycle remained a fertile source of new business this quarter, and demonstrated the market's preference for AI driven solutions paired with high performance first party data activation. The combination required to execute modern cross channel customer engagement at scale. Since our founding, Braze has been built on the architectural choices that now turn out to be exactly what AI demands. Real time, a focus on first party data, stream processor that learns as it runs, and enterprise grade security and performance built in from day 1. By contrast, the same flaws that held back our competitors during the mobile and stream processing eras are hindering them again in the age of AI. The architectures that could not handle real-time data then cannot harness advanced AI today. As we accelerate product development, we are putting AI to work on the problems that our customers actually face. This quarter, brands across diverse industries and geographies graduated from legacy platforms to Braze. These include an expansion into LatAm with an existing global beauty customer and new business opportunities with companies like an Australian online wagering business, a French athletic apparel company, a global retirement and investment solutions company, and 1 of the leading energy drink companies in The United States. Whose products are a longtime favorite at our HQ in New York and have been credited over the years with major productivity gains in R&D. Alongside our AI coding tools, of course. Our momentum continues to be driven by the 4 foundational strengths that we articulated last quarter. First, the Braze Data Platform's ability to serve as the first party context engineering layer for AI at massive scale. Second, our vertically integrated data and decisioning architecture. Third, our composable AI architecture that makes Braze both smarter and easier to use. And fourth, our position as both a revenue driving engine and mission critical operational capability. These strengths are compounding as we accelerate AI innovation and continue winning in the enterprise. The marketers using Braze are seeing better performance from the programs that they run today and they are seeing the work itself change. What used to take a team of specialists is increasingly something that a small group can build, monitor, and improve in a single afternoon. And the capabilities of the Braze platform are advancing at a rapid pace to support them. As I shared in March, Braze AI operator and Braze AI agent console reached general availability early in the first quarter, ahead of schedule, and we are seeing strong early adoption. Hundreds of customers are already using them to design and execute more sophisticated programs with more efficient teams. Braze AI Decisioning Studio's new business pipeline is scaling rapidly contributing to growth this year. And these are not just road map commitments. They are AI solutions that are in the wild and in our customers' hands, earning their place in how some of the world's most demanding brands engage with their customers. The early adoption we are seeing across Braze AI operator Braze AI Agent Console, and Braze AI Decisioning Studio reflects a consistent pattern Customers across industries and scale are finding that our AI delivered what general purpose tools cannot. It operates directly on their first party data, inside their existing workflows, and against their specific goals. And we published an incredible example of what Braze AI operator makes possible in a recent case study with Clio, a global family care platform that wanted to rebuild its member welcome series from the ground up. Clio knows their members well and engages with them frequently on their health and care journey. They use Braze to translate that knowledge into real-time action, but their ambition was outpacing their ability to implement new personalization strategies and experiment at the scale that they desired. Now with Braze AI operator working alongside them directly inside the Braze dashboard, Clio's life cycle marketing manager was able to quickly build and QA the code and configuration behind an upgraded welcome experience that automatically adapts to each member's care goals. The results were striking. Unsubscribes across the welcome series fell 81%, Opt outs on the first email dropped 97%, and app opens increased 284%. And that is what Braze AI Operator was built to do. Put sophisticated execution in the hands of the people who are closest to understanding their customers without requiring an army to support them. The same principle, AI that understands context rather than operating in the abstract, is what led luxury escapes to take a different kind of leap with Braze AI Agent Console. 1 of the world's fastest growing travel companies with 9 million global members the brand deployed Agent Console to push past the limits of rules based segmentation. Their team replaced fixed thresholds with an AI agent that evaluated 10 distinct behavioral signals simultaneously throughout each new user into the right welcome cohort. The agent based approach delivered a 10% lift in revenue per user driven entirely by conversion rate. Along with a 7% increase in total transaction value and a 6% increase in purchase volume. What mattered most to the team was what the agent chose not to do. It did not default to the promo cohort to take the path of least resistance. It was reading the users in a way the rules never could and the performance followed. Now if you scale that same challenge up to 114 million loyalty members, the problem shifts from replacing segmentation rules to replacing the testing infrastructure itself. And that is where Braze AI Decisioning Studio comes in. 1 of the world's largest hotel franchisees adopted Decisioning Studio to move past a manual testing operation. Which was previously a sequential manual 10-week cycle of build, test, and analyze. Braze AI Decisioning Studio replaced that process with continuous automated experimentation across hundreds of simultaneous permutations optimizing message, timing, and creative for each member in real time. They achieved double digit increases in click through rate. With personalization of creative accounting for roughly half of the total uplift. We built Braze on the conviction that the brands closest to their customers would win their categories, and AI is making that advantage compound faster. The combination of our data platform, our AI decisioning layer, and our comprehensive channel suite gives customers something that no loosely assembled stack can Engagement rooted in their own first party data and delivered at the speed and scale modern consumers expect. Braze is becoming the standard for global customer engagement. Not because we declared it, but because the world's leading brands are building with Braise and wielding the sophisticated AI that we have placed in their hands. We enter the rest of fiscal 27 with strong commercial momentum accelerating product road map and a team that is winning where it counts. I am energized by what is ahead. And before I close, you probably saw the news that we shared at the end of April. That Isabelle is stepping away, and we are actively engaged in a CFO search at this time. I want to take a moment to thank Isabelle for her dedication over the past 6 years. She's been an incredible partner through some of our most defining moments. Guiding us through the IPO, helping us scale the business to nearly 1 billion in ARR, and driving our path to profitability. Isabelle, we are grateful for everything that you have contributed to Braze and we are excited to see what is next for you. And with that, I will now turn the call over to Isabelle. Isabelle Winkles: Thank you, Bill. Building and leading the finance team at Braze and working with you and your leadership team over the past 6 years has been 1 of the most rewarding experiences of my career. I am proud of what we have accomplished together, and I am excited to witness Braze's continued success ahead. As Bill stated, we reported a strong first quarter with revenue increasing 30% year over year to $211 million driven by a combination of existing customer contract expansions renewals, and new business. Braze AI decisioning studio contributed $5.7 million of revenue in the quarter, implying an organic year over year growth rate of 26.7%. Our fourth straight quarter of organic revenue growth acceleration. After a supply constrained Q4 that forced us to limit decisioning studio bookings in certain regions and also delay decisioning studio start dates by multiple months, we are happy to share that we have successfully accelerated the hiring and ramp of our forward deployed delivery personnel which has enabled us to accelerate the pace and timing of Decisioning Studio start dates. As a result, we expect revenue from decisioning studio in Q2 to grow 15% to 20% sequentially from Q1. Subscription revenue represents the primary component of our total top line, contributing 93% of our first quarter revenue, while the remaining 7% represents professional services revenue. Approximately 85% of the total professional services revenue is recurring revenue that is recognized ratably over the life of a contract. Just like our subscription revenue. These recurring professional services include dedicated support from forward deployed engineers, email deliverability services, and dedicated technical and strategic support and customer success entitlements. Total customer count increased 16% year over year to 2.17 thousand customers as of April 30, 2026, up 371 from the same period last year and up 104 from the prior quarter. Our total number of large customers, which we define as those spending at least $500 thousand annually, grew 33% year over year to 349. And as of April 30, 2026, these customers contributed 65% to our total ARR compared to a 62% contribution as of the same quarter last year. Measured across all customers, dollar based net retention was 110%, an improvement of approximately 100 basis points sequentially, while dollar based net retention for our large customers was 111%, also up approximately 100 basis points from the prior quarter. Expansion was again broadly distributed across industries and geographic regions. The first quarter, our total remaining performance obligation was $1.1 billion up 30% year over year and up 4% sequentially. Current RPO was $670 million, accelerating to 28% year over year from 27% in the prior quarter. The increases were driven by contract renewals and upsells, the signing of new customer contracts, and a continued modest increase in dollar weighted contract length. Non GAAP gross profit in the quarter was $142 million representing a non GAAP gross margin of 67.4%, This compares to a non GAAP gross profit of $112 million and a non-GAAP gross margin of 69.3% in the first quarter of last year. The decrease in the year over year margin was driven primarily by higher premium messaging volumes and the addition of decisioning studio headcount attributable to Core. Total operating expenses were $132 million or 62% of revenue compared to $110 million or 68% of revenue in the prior year quarter. While the dollar increase reflects our investment to support overall growth, the improved efficiency reflects our disciplined approach as we work towards our long term profitability targets. Non GAAP operating income was $10.5 million or 5% of revenue, compared to a non GAAP operating income of $2.8 million or 2% of revenue in the prior year quarter. Non GAAP net income attributable to Braze shareholders in the quarter was $11.4 million or $0.10 per share. Compared to $7.3 million or $0.07 per share in the prior year quarter. Now turning to the balance sheet and cash flow statement. We ended the quarter with approximately $392 million in cash equivalents, restricted cash, and marketable securities. Cash provided by operations during the quarter was $28 million compared to cash provided by operations of $24 million in the prior year quarter. Including the cash impact of capitalized costs, free cash flow was a record $27 million in the quarter compared to $23 million in the prior year quarter. We expect our free cash flow to continue to fluctuate from quarter to quarter given the timing of customer and vendor payments. Now turning to guidance. For the second quarter of fiscal 27, we expect revenue to be in the range of $219.5 million to $220.5 million which represents a year over year growth rate of approximately 22% at the midpoint. Second quarter non GAAP operating income is expected to be in the range of $17 million to $18 million At the midpoint, this implies a non GAAP operating margin of approximately 8%. Second quarter non GAAP net income is expected to be $17 million to $18 million and second quarter non GAAP net income per share in the range of $0.15 to $0.16 per share based on approximately 114 million weighted average diluted shares outstanding during the period. For the full fiscal year 2027, we expect total revenue to be in the range of $895 million to $899 million, which represents a year over year growth rate of approximately 22% at the midpoint. Fiscal year 27 non GAAP operating income is expected to be in the range of $70 million to $74 million. At the midpoint, this implies a non GAAP operating margin of 8%. Non GAAP net income for the full fiscal year is expected to be in the range of $70 million to $74 million, and net income per share is expected to be $0.61 to $0.65 per share based on a full year weighted average diluted share count of approximately 114 million shares. By integrating AI driven intelligence at the core of our platform, we continue to set the standard for best in class customer engagement. Braze remains fully committed to an ambitious innovation road map. While staying firmly on track to meet the company's long term financial goals. And with that, we will now open the call for questions. Operator? Operator: Please begin the Q&A. We will now begin Q&A. For today's session, we will be utilizing the raise hand feature. If you would like to ask a question, simply click on the raise hand button at the bottom of your screen. Once you have been called on, please unmute yourself and begin to ask your question. Please limit to 1 question and 1 follow-up before jumping back in the queue. Thank you. We will now pause a moment to assemble the queue. Our first question comes from Arjun Bhatia with William Blair. Please unmute your line and ask your question. Analyst (Arjun Bhatia): Alright. Thank you so much. For taking my questions. Isabelle, it is been a pleasure working together all these years and wish you the best in the future. it is been a pleasure working together all these years and wish you the best in the future. And, actually, I wanted to maybe touch on your comment on the bottleneck sort of in Decisioning Studio. I am curious how much of a headwind was it not having those, FTEs that you talked about, and now that you are looking ahead and kind of taking into account the demand for Decisioning Studio, how do you feel about the hiring and the headcount that you have sort of brought on board over the last several months here to address the bottleneck? Isabelle Winkles: Yeah. So thanks for the question, and thanks for the comment. We feel really good about the momentum and the pace of hiring. And actually so I will not break out specifically the impact in Q1, but the purpose of the comments I made in my prepared remarks actually to give you an indication of the impact of the hiring and where Q2 revenue is likely to land. So you have given a range for the sequential off of Q1, so you can see the momentum sort of starting to build there. And that is thanks to that momentum that we have in the headcount increase So we are really pleased with that. We have gone from zero to 1 on headcount in certain locations where we just did not have this capacity. So we were strong in kind of the Americas region because that is really where Decisioning Studio was kind of born and then, had to start with EMEA and APAC, and we have now done that. Okay. Perfect. Understood. that is very helpful. Analyst (Arjun Bhatia): And then, Bill, 1 for you. It seems like on broader AI adoption with, with Operator and agents, especially. It seems like customers are starting to adopt capabilities. It sounds like you even had a win with an AI lab. I am curious how you think about just customer readiness to adopt AI, and they are dealing with this in every function. Of their organization. Where does customer engagement rank sort of in this priority of AI projects? And kind of being at the frontier of AI across the organization. for your customers. Thank you. William Magnuson: Yeah. So I think there is 2 components, and we break down our product road map in the same way when we look at the demand signal and the prioritization from AI. 1 of them is marketer workflows and making sure that teams are getting maximal product that they are able to leverage the other AI tools that they are bringing into their tool chain, and we see that through increased usage of the Braze MCP server and a lot of different usage patterns expanding there. The other side is on the performance. And the quality of, you know, personalization of rep and relevance optimization. And other aspects of decisioning that we can bring to customers so that 1, they can achieve better results with their customers, but, 2, it also feeds back into the productivity, you know, really allowing the marketer to ascend above the drudge work of going campaign by campaign, you know, really drive higher levels of experimentation that lead better performance and allowing them to operate more as a conductor of or a composer, you know, of AI capabilities rather than being in the tool, you know, working through or being in the tool line by line, working through a lot of the manual processes that we have seen in the past. And so I think both of those, both of those are key to the transformation agendas within organizations. But we are also still seeing the customer education is paramount. Both in the decisioning space specifically as well as in AI driven optimization more generally. And I think we have been really happy with how our full spectrum approach that is leveraging reinforcement learning, Gen AI, and agentic approaches together is developing into a robust suite of Braze AI offerings and a really exciting road map We are also seeing from Decisioning Studio what we were confident of in our analysis of the OperaFit acquisition last year, which is that it is a hard and complex problem space. James careful data science and a deep business problem understanding. And a strong appreciation of the role of the marketer in all of that. To meaningfully solve it. And so, you know, the just the product quality, the quality of the deployments, the excitement that we see from people adopting new ways of working with operator as well as new ways of driving personalization and relevance optimization with both agent console and decisioning studio and content optimizer as well. Are all pointed in a in a really optimistic direction. And think we are we are continuing to see this be an important prioritization point in broader AI transformation agendas simply because it both improves employee productivity and it drives the bottom line. Operator: Your next question comes from the line of Scott excuse me. From the line of Brett Huff with Stephens. Brett, please unmute your line and ask your question. Analyst (Brett Huff): Good evening, everybody. Isabelle, good luck on the next chapter. it is been nice working with you, so you will be missed. 2 questions for me. 1, to follow-up on the operator point. Our understanding is that is really been helpful in showing the power of AI to not just your more sophisticated marketers, but maybe those who aspire to be more sophisticated and has maybe made entry into that AI buying motion better. I think that happened in April, and it sounds like maybe with some more forward deploying engineers could be happening again. Can you talk a little bit about if that is the sort of tip of the spear and what you are seeing in day to day selling, and is that dynamic that we are that we understand to be true? William Magnuson: Well, as I mentioned on our post Q4 earnings call, which was actually just 64 days ago, we had recently released both operator and agent console to general availability well ahead of schedule. Since then, we also completed the public launch of operator and agent console and we did that on stage alongside live product demos at the Braze City by City London event, which is our second largest event of the annual calendar and that was at the end of April. Audience feedback was tremendous positive. We have since been featuring operator and agent console at Grow with Braze events around the world. We have even hosted partner and customer hackathons to continue to drive ideation and adoption. And we are also moving fast on enhancing decision decisioning studio self serve features and we recently expanded support for content optimizer to include SMS, MMS, and RCS in addition to, email and push support, which was already there. So a multifaceted road map that continues to advance quickly Customers are definitely, you know, still in different phases. We have got some that have full production use cases, and we have been sharing we have been sharing the case studies on those both in these earnings calls as well as on our website. In order to both share that with all of you, but also to help get the creative juices flowing amongst our customer base. You know, these are definitely new working paradigms in particular. Being able to incorporate, agentic capability into Canvas and into that control plane, really understanding how to use the data sources that are there effectively. You know, we have done a lot of work in the product design to make sure that we can deliver context to these agents on a per user basis that is derived from first party data. In a way that has the right operational guardrails, security, and privacy guarantees as well as the performance that is required in order to run these in b to c messaging use cases or in product experiences. And so, you know, there is definitely still work to be done broadly across the customer base to first lay down the baseline education, then encourage early adoption and experimentation, and moving that into scaled use cases. And we have got teams mobilized around the company to continue to push ahead on those goals both for customers to be adopting operator to accelerate their own workflows as well as agent console and Decisioning Studio and content optimizer to enhance the outcomes that they are achieving with Braze. Analyst (Brett Huff): that is great. And, just quick follow-up. To put a finer point on the context, question, as you imagine, we continue to get questions on the AI eating SaaS. It seems like you all are building on in a lot of AI in a very specific and purposeful way. You talk a little bit about this idea of preprocessing or context enabling pre processing before giving data to an LLM in order to start thinking about total cost of LLM token use making those more efficient, and just kind of it seems to us reemphasizing the importance of SaaS generally, but Braze in particular. In a very sort of important cost element that is going up quickly. William Magnuson: Yeah. Absolutely. And, you know, I think anyone that has worked with the likes of Claude or some of the other, what I would call single player agentic harnesses that are out there. You know, we know that these tools have limitations. They still require a lot of lot of babysitting and hand holding. You know, they can go off the rails, especially on long running tasks. And similarly, the quality of the outcomes have a lot to do with the context that you provide because a lot of their a lot of their intelligence capability also rides on their ability to focus on the right things and to sign attention to the right aspects of the context. And so a big part of what agent console provides is not just preprocessing of that context using, you know, the stream processing engine and the Canvas runtime that we have today so that context can be efficiently and rapidly provided to the agents so that they do not need to use a whole bunch of tokens going in all that context in the first place. But it also serves the role of designing and compressing the context so that the attention can be placed in the in the attention is more obvious for the agent. That allows for us to not have to rely on the most expensive slowest, state of the art models. We can use faster, higher and cheaper models within those workflows, which is better suited for, at least with current technology, is certainly better suited for, these b to c use cases. And it allows for us to kinda manage the overall quality of outcomes, performance, and cost tension that exists when you are using these models. So, absolutely a lot of, a lot of careful product design, a lot of learnings. We are very fortunate to be right on the frontier with the, you know, most ambitious tech forward, data driven marketers on the planet who, of course, have always characterized the Braze customer base. We are getting great engagement from our agency and systems integrator partners on this front as well as they are bringing in specialist teams to be able to really flex these tools in new and creative ways. And that is coming together, you know, with the what Canvas has always done a great job of, which is being a control plane. But, of course, the job of the control plane in a AI native world also requires, careful attention to context engineering. And so that is a big part of where we have been focusing product development, and it is something that we think will continue to be a really important role that the software layer will play on top of the models. Awesome. I appreciate it. Thank you. Absolutely. Operator: Your next question comes from the line of Scott Berg with Needham. Please unmute your line and ask your question. Analyst (Scott Berg): Everyone, nice quarter here. First question is on jump in professional services revenue in the quarter. Isabelle, my guess is that the jump there is partially related to the know, these new forward deployed engineers and their hiring and kinda getting ramped up to speed. But my question is, 1, to validate that, and it is this kind of the new run rate level? And you know, as we think about this line item as truly a, enabler of selling additional subscription revenue. And then lastly, in that, professional services kinda great question there is, how much of that is pressing on gross margins today? Obviously, the premium channels last couple quarters have pushed on margins a little bit because of their costs, but how much further do we expect those increase in professional services revenues to maybe eat at gross margins? Thank you. Yep. Isabelle Winkles: For the question. So just first, yes. You know, yes, it is partially related to the 4 deployed personnel that mix in. But, actually, a bigger part of it is related to some packaging changes that have chain that have occurred relative to how we sell our CS entitlements. They were previously kind of fully bundled into the subscription piece with a bit of an allocation into professional services based on activity. We have actually become a little bit more specific there and created some line items and SKUs for CS purchases. This allows customers to have a little bit more transparency in terms of what they are buying. It allows us to realign the workforce and have kind of the rights or number of people that are actually being paid for by customers. And then from an accounting perspective, it simply creates the fact pattern that you are starting to see with a bit more of an allocation or attribution rather into professional services. But part of the reason I wanted to disclose the percentage of the professional services that on a recurring basis is we thought it was important to explain that there is no fundamental change to the revenue recognition It is just a geographic change between, the subscription line item and the professional services line item. So that I think that is kind of how I would describe it. And then in terms of the gross margin impact, a little bit of an impact there from the personnel, but we have also been able to kind realign things with strategic cost optimized location strategy there. And really the messaging is kind of a primary component to the gross margin story. Understood. Thank you. And I would be remiss to say, or not to say good luck Wishing you good, good luck in the next spot, and, hopefully, to work together again. Thank you. Yeah. Analyst (Scott Berg): But from a follow-up question, you know, how do we think about kind of the impact on sales cycles, Bill, with all the new AI modules that you have released? The last 6 to 8 months has been a huge innovation boon for the company and including a couple that you have released early here recently. But is that delaying sales cycles? Is it speeding it up? Seems like deals are getting bigger, but sometimes, you know, that can be offset by time frames. How do we think about this in this environment where spending seems to be on the on the rise and the on the increase? William Magnuson: Yeah. I mean, I think you are seeing in the bookings results that we are seeing higher velocity decision making. We have also seen it in our competitive win rates, and I think those things work together. With a strong differentiation in the offering, which is, of course, led by the AI road map since that is front and center for all right now and kind of everyone evaluating either software transitions or new purchase into their technology ecosystem. That is coming together in order to create, you know, more efficient sales cycles, and, you know, we are seeing that. We shared that in the bookings results following Q4. We similarly saw, you know, great competitive win rates and high you know, higher deal velocity than we have in prior years throughout the quarter. And so we are responding to that with our own teams as well in terms of how we are organizing within our sales teams, you know, as we have talked about in the past. We have also been doubling down on verticalization of our sales teams in this year so that we have got stronger familiarity and more alignment within the key verticals, you know, within Braze. that is that is really helping. Drive alignment not just with customers so that we are speaking their language and that we understand their business models more deeply, but it is also helping with alignment with partners and within the broader ecosystem. And partner alignment, you know, tends to help out deal cycles as well because the architectural questions get resolved faster and we are able to bring in the social proof of trusted partners that are already installed at partners to be able to, you know, expand or graduate into Braze. And so I think we are liking what we are seeing there. Similarly, you know, as you mentioned, I think we are seeing pretty similar macro conditions as we have over the last few quarters, so not a big change to really to really report there. But we are seeing the opportunities for higher velocity, and we are seizing them. Excellent. Nick quarter. Thanks, Ken. Operator: Thank you. Your next question comes from Ryan McWilliams with Wells Fargo. Please unmute your line and ask your question. Analyst (Ryan MacWilliams): Excellent. Thanks for taking the question. Bill, it looks like you are seeing monthly active users increasing and your net retention is increasing. I know MAU is not a great metric for your business, but it just seems like the digital ecosystem over the last few quarters has really shifted for the better. You know, AI or not, what are some of the things you are seeing from your customers? And are you seeing your existing customers, like, activate on more campaigns and, more message sending at this point? William Magnuson: Yeah. Well, we are definitely seeing, more campaign creation And in fact, we saw an interesting proof point of that parallels our own experience with use of agentic coding tools, which is like of course, with our engineering teams, as soon as you can start to pump out code faster, the bottleneck appears at reviewing that code. And deploying and releasing that code. And we are seeing similar impacts within our own customer base where operator and use of other agentic tooling is speeding up campaign creation, create content, creation. People are doing more experimentation, etcetera. But that, of course, is increasing both the demands on QA for all of them as well as just the complexity that comes about when you have got more programs running simultaneously. And so we actually the customer advisory board that we did a at London city by city, QA automated QA agentic automation of QA, which we were very happy to share with everyone, actually entered beta that same day as an offshoot of our agent console product. Was 1 of the top demanded features And that is actually the first time I can remember that being the case in a customer advisory board. So I think that you are already seeing some of the implications of enhanced marketer productivity moving into other parts of their overall workflows. And then, you know, of course, there are a bunch of caveats around monthly active users, but, of course, we are happy to see growth amongst the overall network, growth amongst the mobile community as well. I know that you have been closely tracking Store submissions and things like that. And, obviously, those fact patterns remind me of 10 years ago as we, you know, first launched into the mobile universe and those mobile app stores started to take off. And so, you know, we certainly operate up at a level where, you know, those mobile apps will need to mature over time, and we are no stranger to that from the early days of the Store. You know, even today, there is there is millions of apps out there, and we only have single digit thousands of customers. So, obviously, there is a match there for our business model and how those mobile apps will mature and then graduate to becoming customers over time, and we are really excited to bring them into the picture. But you know, we also do have a number of very fast growing, fast maturing AI native applications that have come into our customer base over time too. And so you know, definitely an exciting time to broadly be in software. People are out there building. They are growing. They are expanding, and that is great to see. You know? And we are excited to be putting more advanced tools into the hands of the marketers that are responsible for, the customer experience and the growth of those applications. And, you know, we are seeing their workflows evolve and change in front of our eyes as well, and we are moving fast to be able to continue to provide the best tools possible for them. Analyst (Ryan MacWilliams): Excellent. Yeah. Brett to see the prominent AI lab 1 and ramping AI natives. Isabelle, know, pleasure to work together. Just wanted a point of clarification on the professional services side. You mentioned CS credits. What are those? Just, like, to something I was too familiar with. And then, just from your perspective, it seems like this is coming up in my investor conversations. Like, do you just feel it as, like, moving 1 bucket to another? Like, the composition is the revenue is very similar to last quarter. it is more just an accounting change for this quarter. The difference between the mix there. Isabelle Winkles: Yeah. So that is exactly right. So let me clarify. CS is it is simply the customer success entitlements that were previously bundled in with the subscription platform fee are now separately skewed out and can be purchased separately by the customers. So that is that is what you are seeing. And just to do the math for you, what this means is that, you know, I said that about 85% of our professional services is recurring, and obviously, the subscription component is recurring. So that means in total, you are looking at about 99% of our revenue is on a recurring basis. Analyst (Ryan MacWilliams): Okay. Appreciate the clarification. Thank you. Operator: Your next question comes from Parker Lane with Stifel. Please unmute your line and ask your question. Analyst (Parker Lane): Hey, team. Good afternoon. Thanks for taking the question here. Bill, 1 of the things you guys talked about when you brought Edward in was not only verticalization, but adding a lot more capacity to this business. And I think you messaged this earlier this year that you see a big ramp in second half of the year. Can you just talk about how that is tracking according to expectations or where that is? And where you expect that to have the biggest impact on the business. William Magnuson: Yeah. So hiring across the sales and field organizations is absolutely a priority in the right now. As you know, we have, in particular in the enterprise, there is a relatively long ramp time as new account executives come into seat and get to know their patch and engage in enterprise deal cycles which are, you know, of a typical length at Braze, but still counts in quarters sometimes. And so I early in the year, sales hiring and capacity expansion has been an important priority. It will continue to be. We are on track for that so far through the year and continuing to bring in great people into the organization. You know, I think that the Braze story is resonating really well amongst the software category right now. The combination of our results as well as our AI road map is just bringing in some really excellent talent, and we have been really excited to be able to continue to grow our teams through the period. Analyst (Parker Lane): Got it. And, obviously, you have seen some nice improvements in DBNR here and all cohorts of the business. With decisioning studio, come in its first year in the business, and you have got operator in console out there. what is the right frame framework to think about the potential impact to DB and R? Do you think about these tools that is helping you sustain these levels? Is there potential for it to break out further from here? Anything there would be great. William Magnuson: Yes. Well, so first of all, decisioning studio, obviously, because of its price point at around $200 thousand to $300 thousand per use case, has a the ability to have a more direct short term impact on upsells. But we have also been broadly the product portfolio, putting more SKUs in place for our sales team to go and sell, more use case expansion, more channels more AI to be able to optimize those channels, and we are really looking it as a full portfolio play. Analyst (Parker Lane): Got it. Thank you. Operator: Your next question comes from Brian Peterson with Raymond James. Please unmute your line and ask your question. Analyst (Brian Peterson): Thanks for taking the question. Isabelle, it is been a pleasure with you. I will I will keep it to 1. So just as we are thinking about the importance of first-party data, I know in AI, that will be critically important. Bill, I am just curious how much that is a factor in some of these win rates improving that you are seeing? Just would love to get any color there. Thanks, guys. William Magnuson: Yeah. I mean, I think the key thing is just that the differentiation is clear right now. And when you look at Braze versus the broader competitive set, you know, we combine together the industry leading vision with a incredible customer community that we are able to develop at the frontier of the technologies right alongside. That also includes our partner ecosystem you know, alongside all the amazing agencies and systems integrators that we work with that continue to push ahead. And we are moving really fast on development across the full suite of Braze AI offerings. I think we also, you know, had a huge starting benefit in that our platform is vertically integrated. it is been, you know, almost entirely organically developed, which means that not a bunch of hidden complexity and tech debt throughout the system. We have done a great job over the years of continuing to upgrade underlying, you know, programming languages, different frameworks, you know, major versions of all of our underlying technologies, etcetera. And that puts us in a great position to be able to move fast with our road map and to be able to scale new capability on top of what is you know, the industry's most reliable, highest performance, you know, stream processor in this space. And that just gives us a ton of latitude to be able to develop quickly. And so when you combine together, you know, a very strong fundamental starting point from an engineering and a product health and a product quality standpoint. With an ambitious road map, the ability to invest in r and d due to our scale, you know, really great signals from the market in terms of getting access to real time feedback from the most innovative marketers and, you know, partners out in the ecosystem. And I think that combines together to put us into advantageous position that we have been, you know, leveraging for several quarters now. Through this AI build out, and that is coming together in real tangible products that customers can see in sales cycles. They can they can use in free trials. They can put their hands on them. They can deploy them in production, and they can scale them into production use case And, you know, that both the leading vision there as well as the fact that they are they are live. And they are available now are combining together to really resonate in the market. Thanks, Bill. Yep. Operator: Your next question comes from Matthew Van Vliet with Cantor Fitzgerald. Please unmute your line and ask your question. Analyst (Matthew VanVliet): Hey. Good afternoon. Thanks for taking the question, and been nice working with you as well. Good luck on the next step there. I guess when you look at overall adoption of the Flex credits, especially as premium messaging is coming in. I guess, at this point in the year, how are customers tracking versus, you know, maybe even where they entered the year in terms of allocation there. what is been the pace of customers coming back and just realizing the value and looking to up? Upgrade their allotments before maybe some of the critical fourth quarter selling season? Isabelle Winkles: Yeah. So, look, I mean, the uptake in the adoption of the credits, it is really the only way we sell, you know, the and we have actually changed the name. We are now calling them action credits because they do encompass more than messaging. And so the, you know, the uptake, it is really the only way we sell. So all of our customers that are renewing and all of our customers that are buying new, they are all on this approach. And it is you know, there is the opportunity for more mid quarter sorry, mid contract term upsells. We are seeing kind of generally similar buying patterns where we have been talking about this for, you know, some time. Customers generally buying a little bit closer to their known needs and then upscaling their purchases as they as they need more. So, look, we are really pleased with the direction of travel of the dollar based net retention. That is an element to it. We have seen kind of the upsells that are coming in through that SKU, with the flexible credits But, you know, it is all kind of working together with helping us sort of retain and help customers get the most out of the platform. Analyst (Matthew VanVliet): And then following up on the FDA discussion, I guess 2 part. 1, how do you feel about, I know you said you are ramping up the hiring, and it seems to be going well. But is there still significant amount more capacity to be added in to meet the demand you seeing in decisioning studio and then kind of wrapped in that I guess, at what point in the first quarter did you get back a point where you could start meeting the demand levels? So thinking about how much of the quarter actually was significantly bogged down versus some of the commentary you made going into second quarter? William Magnuson: Yeah. So just to give you a quick measure on the ending end of your question, As we ended Q4, we were pushing we were being forced to push start dates on decisioning studio deployments out a in excess of 4 months in some cases, depending on the region. We are we have cut that about in half over the course of Q1. And that is through both the ramp and the hiring, but also doing things like doing in person group onboarding in order to accelerate the readiness dates of those new hires and just be able to get people deployed into new projects faster. there is also a robust road map that the decisioning studio team is executing on to be able to create more self serve capability And they also have a version of the Braze operator that is under active development right now. That we will be able to start to do some of the activities that were previously delivered through those personnel. And so we have got a lot of development underway both in terms of the practices with how we grow the team as well as in the product itself in order to in order to be able to more rapidly deliver decisioning studio to do so with more efficiency so that we can just get more instances of it out in market and so that we can deliver it to customers faster. And so that is still a journey that we are gonna be on, but we still have a very robust road map of improvements that we are you know, that are that we have got high certainty on are gonna continue to improve that picture over time, and we are excited about it. I think at a at a base level, we have also just been really excited to see that while there is been a lot of bluster and, you know, recent entrance into decisioning from a standpoint, we continue to see that no 1 can hold a candle to decisioning studio in terms of the overall product quality. For those that have been with the Braze story for a long time, that is that is a familiar position for Braze to be in and in a position we would like to be in. We are continuing to invest heavily in making decisioning studio faster deploy, more self serve, there is a lot more to come on that. But I will also say that we are very happy with the foundation and to momentum as well even in an increasingly competitive environment. Brett. Thank you. Operator: Your next question comes from Clark Wright with D.A. Davidson. Please unmute your line and ask your question. Analyst: Awesome. Thank you. Bill, you noted during the prepared remarks 1 of the logo wins this quarter was a prominent AI lab and increasing your presence in data intensive workloads is a priority. Can you talk about the steps you need to take or the partnerships you are leading into in order to increase your presence specifically with data intensive workloads? William Magnuson: Yeah. So, you know, first of all, I think that this is a continuation of a journey that we have been on for multiple years. For Braze, having quick and complete access to, you know, basic all relevant sources of first party data within the customer's ecosystem, whether those are directly generated by user activity and we need to process them in milliseconds or they are the result of deep data science work, you know, that is being done to build out additional models or other you know, other data warehousing long running work like identity resolution, what have you. You know, we wanna be able to have rapid and complete access to all the insights available in order to drive the quality of the personalization and the other decisions that we make along the way. And so that has meant a robust investment and partnership posture for Braze for a long time. We are continuing to lean into that. We have got an exciting road map of, you know, continued expansion for the Braze Data Platform as well as for the MCP servers and API integrations into the Braze Data Platform throughout the rest of the year. We also have, you know, exciting advancements that we continue to push ahead across the likes of Google BigQuery and Snowflake and Databricks. And you are gonna continue to hear more about those throughout the year. So it is it is always been and will continue to be a multifaceted investment posture The most important thing for Braze is that we have rapid and complete access to the insights that we need in order to drive the intelligence that lives in the orchestration and the, you know, control plane and the personalization layers. Of Braze so that we can deliver the best possible product and messaging experiences to customers. And, you know, and the other side of that is also, of course, getting access to creative and content. We announced the creative studio launch at Braze City by City in London at the end of April. That included integrations with both Figma and Canva as well, which we are really excited to continue to develop and throughout the course of the year. And really just looking at these pipelines that feed the Braze orchestration engine, which is inclusive of, you know, context of all kinds, And that means making sure that we have got robust investments into the Brazed data platform, that the Braze creative studio feeds that from a content and a creative standpoint. And then, of course, our composable intelligence vision of the agentic capabilities and a lot of the context that drives them all integrated directly into the Braze ecosystem. Awesome. Analyst: Thank you. And then, Isabelle, 1 for you. In terms of the penetration rate of the decision, studio, how should we think about the ramp there given the headwind of your lease the friction that you have kind of aforementioned in the prepared remarks? And where should we think about, that heading forward as we look at the new logo growth that we see today? Isabelle Winkles: Yeah. So look, I mean, we are we are really focused on continuing to up sell our install base with the capability. So remember, we count the customer at the ultimate parent level, and so we are gonna see, first, we are gonna see kind of deeper penetration of sales of Decisioning Studio to within our existing customer base. So I would not necessarily look for that to, like, increase the logo count immediately. But we are, you know, certainly excited both comments that I made and then comments that Bill made around, the headcount. That we have been able to add on the 4 deployed personnel. And so, you know, we will continue to fulfill that pipeline. The pipeline continues to be really robust. And to build, you know, through the rest of the year. Got it. Thank you. Operator: Please keep questions to 1 question. No follow-up. Your next question comes from Nick Altmann with BTIG. Please unmute your line and ask your question. Analyst (Nick Altmann): Awesome. Thank you. Isabelle, it is been great working with you, and wishing you the best of luck. In a new role. Bill, the legacy replacement cycle seems to be continuing very nicely. I think you mentioned 8 figure customers are now at 5. And my question is, how much has decisioning studio, agent console, operator, sort of driven that acceleration? And I understand some of these customers may not be adopting these tools right away, but maybe just talk about how the new AI offerings, the innovation, and the road map is actually driving some of that replacement strength that you are seeing and whether that gives you more confidence in adoption and monetization on the agentic side over the medium term. William Magnuson: Yeah. So, you know, I think all the commentary that I have had about the role that our AI roadmap and our AI offerings have had on new business also applies to a lot of these expansions because frankly, you know, everyone is looking at their software stacks right now and questioning whether or not they have the right capabilities and whether they have got the right, you know, partnerships and the right vendors to be able to make sure they are taking advantage of this AI transformation as maximally as possible. And so, you know, the you are not winning expansions like that with, you know, with organizations at this scale and at this level of sophistication. Without them having full confidence that you are a vendor that they can rely upon to partner with at you know, as part of their own AI journey. And so I think it is it is just as applicable there. 1 of the other things that we are seeing and, you know, Braze's product and our strategy has always been at the convergence of, you know, both the marketer experience and the raw capabilities to be able to drive high performance personalization and such which I mentioned earlier, you know, both the marketer experience and the consumer experience. But also the continued evolution of consumer behaviors and consumer devices And we have talked about this a lot in the past, but, you know, we are also seeing that in the face of some of the uncertainty around things like agentic commerce, that, you know, within the retail category as an example, companies are starting to prioritize CRM right now because they know that as we have seen in so many other categories that have been disintermediated by agents, whether those are online travel agents, you know, in the story from a decade ago or you know, more than a couple decades ago or the story from a decade ago of, you know, a lot of the restaurant brands being disintermediated by delivery platforms. You know? And, of course, you can see in Braze's history that we have benefited from those disintermediations because it causes brands to double down on connecting more directly with their customers. To make sure that, they have got the first party data to understand who those are, that they can communicate with them, and that they can you know, nudge them toward being customers that do not come in, through these disintermediated these disintermediated platforms or other user experiences where, you know, they achieve lower margin, they do not get as much data, etcetera, etcetera. And so in preparation for know, potentially seeing more agented commerce out there, we are actually seeing retailers doubling down on their CRM investment. So that they can get closer to their customers and they can understand them more completely and be able to keep those lines of communication open. Open. And so, you know, I think that across the board, we are seeing the drive for additional marketer productivity. We are seeing the demand for greater performance and results through wielding these advanced And then we are also seeing the continued drive toward building strong first party relationships with customers, which is of course, in our mind, a sustainable business tactic through all generations of technology, and we absolutely know that the brands that thrive through this period are gonna be ones that continue to keep a strong connection with their customer and Braze's exactly how they are gonna do that. Operator: Your next question comes from Derrick Wood with TD Cowen. Please unmute your line and ask your question. Analyst (James Derrick Wood): Brett. Thanks, guys. And Isabelle, great to work with you. Good luck on your next endeavor. I wanted to ask about the, US carrier fees on the SMS side of the business. They have been on the rise. Just curious how you guys are kind of absorbing this. Are you passing this on to customers or not? Have you seen any impact from, like, demand elasticity and what are the implications for gross margins, especially as we look through the rest of the year? Isabelle Winkles: Yeah. So we approach carrier fees. We have approached these in a very, very consistent manner over the last several, several years. We do pass those on directly to the customer. And so that we have been very consistent. So any changes in price there are borne by the customer. I would say we have been talking about premium messaging channels. Having that impact over time on the gross margin. This is a component to it, but it is all it all mixes in. So it is everything sort of WhatsApp to general SMS, carrier fees, all of it just combined. Operator: Your next question comes from Raimo Lenschow with Barclays. Please unmute your line and ask your question. Analyst (Raimo Lenschow): Hey, guys. This is Sammy Cusi on for Raimo Lenschow. Thanks for saying the question. Bill, as assistant studio and agent and agent console continue to gain traction with your customer base, how do you think about the long term coexistence between LM based agentic decisioning and reinforcement learning decision based decisioning, Are those use cases or customer verticals that might be better suited for 1 versus the other? William Magnuson: So the short answer is absolutely there are different use cases that either of those technologies in isolation as well as various hybridization of them are gonna be best suited for. And that truth is a big part of our full spectrum AI strategy. That we continue to build out. To go back to also the that the split between the marketer experience and marketer productivity and then the customer experience and customer outcomes, you know, we are also seeing a variety of different approaches on both sides of that. And so on the operator and the marketer experience, side, you know, we are also actively expanding our investments in our MCP service and our API suite. And in the proprietary Braze operator. We also have customers who are already using AgenTic computer use to automatically operate our dashboard. But we believe that hooking those AgenTic harnesses into operators' brace specific training and tool use is gonna be the stronger usage path in the, you know, medium and long term. We prioritize building out the in dashboard experience or operator first, but we are also investing in allowing the operator's intelligence to be flexibly leveraged through a variety of usage patterns. You know, we are also on that point, really excited to see innovation coming from customers utilizing Claude and other agent harnesses to interface directly with Braze. But we also know that still in the beginning of that. You know, most agentic tool use still requires a ton of hand holding. it is also mostly individual or what we call like, single player exercise of those tools today. Marketing is typically a multiplayer activity, and it inherently crosses es over a lot of different disciplines. It touches broad parts of the customer journey, and it benefits from, you know, both creativity and deep data analysis, which often is done better in Teams. And so we wanna enable Braze AI for the marketer in a composable and a flexible fashion, supporting a variety of both single player and multiplayer AI enabled workflows. And we are gonna continue to invest heavily there Across the decisioning side, you know, I think it is also helpful to go back and look at how we have interoperated with data and creative and personalization over the years. We see both in our partner ecosystem as well as from hyperscaler services and home built capabilities that often customers will want to hook into Braze in order to, you know, either provide additional data sources or, you know, maybe there is a specialized vendor from the Braze Ally partner ecosystem or something that they have been investing in a long for a long time internally. You know, for us, the critical components of the architectural moat are ensuring the real time access to high quality first party data. We do that with the Brazed Data platform and our composable design. We wanna maintain a strong foothold in the control pane plain we do through Canvas. Brent console, through decisioning, and through our many air traffic control capabilities and things like content optimizer. And so, you know, within that, and, you know, specifically to your question around which technology approaches know, I think when we think about the relevant control plane and the right tool for the job, you know, a lot of it has to do with are we engaging in long running aspects of the customer journey, Are we responding to a cultural event or an emergency? Is this an operational need? Are we trying to fulfill a product to experience versus provide some sort of, you know, real time notification use case? These all have very different demands on them, but they are all in customer engagement. And so you need to be able to have different intelligence approaches to enhance and optimize across all of those different use cases And, of course, the huge surface area of that problem both creates a gravity for us to progressively take responsibility for new use cases and new channels. You see that in the strong DBNR. You see that in the expansion of the channels that our customers adopt over time. And the diverse set of install points allows for Braze's predictive models, our AI recommenders and optimizers, and our decisioning systems to all enhance the orchestra work that we are already doing. And that drives more value to the customers, and it is higher revenue opportunities for Braze. And so, you know, customers are gonna mix and match not just Braze's intelligence systems with first and third party add ons, They are also gonna mix and match the composable hybrid solutions that we provide, together. And that is been an important part of our design and differentiation for many years. And so we are excited to see these new capabilities coming into the fold. But from a composability of design perspective, it really fits into the strategy that we have been running for years. Operator: Your next question comes from DJ Hines with Canaccord. Please unmute your line and ask your question. Analyst: Hey, thank you guys. Isabelle, congrats to you and best of luck. Bill, I am curious if you are seeing of your large enterprise customers kind of rethink organizational structure around customer engagement because of AI. And then, like, longer term, do you still think marketers and CX teams themselves remain the primary user, or does this all go autonomous at some point? William Magnuson: Yeah. So, first of all, 1 of the things that we continue to see is something that is been true for a long time in our customer base, which is that Braze is typically being used by small agile teams of what I would call builder marketers. Right? These are these are marketers that are on the leading edge of using new technology They are doing data driven and experimental work. And they build these experiences. Right? And they use Braze and other tooling around Brazed in order to kinda build and deploy the ideas that and the experiments that they wanna run, and the optimizations around those. And so I unlike, you know, large support desks or other teams that have historically had a lot of headcount, You know, Braze has always been wielded by the small, resourceful tech forward teams. And so, you know, their productivity is of the utmost importance because they are they are always limited and small, and the work that they can do in the and especially know, every time we bring, new capability to provide better performance and better optimization, the demand on those teams to go and leverage that in order to drive the bottom line exists within those companies. And in order for them to fulfill those demands, they need higher levels of productivity And so putting that in a, you know, a virtuous cycle where we create the opportunity for those marketers to deliver more impact And then they, of course, subsequently need to be made more productive, and we work on both of those in a loop. You know, I think that with respect to org chart org chart evolution, Braze has also driven a lot of org chart evolution over time. You know, in our early days, it was not uncommon to have every single channel, like separate web, mobile, and email teams You know, now it is very it is much more normal to just have a consumer CRM or a customer engagement or a growth team that is responsible for cross channel engagement. The way that the responsibility bridges into product experiences versus messaging experiences tends to vary from company to company. But the trend line is all about having a more holistic point of view over more and more of the customer experience and being able to, put the kind of management of that customer experience in the hands of someone that is also deeply in tune with the business strategy and the business goals. And, you know, that the convergence of both that perspective and the deep understanding of the customer and the business goals has historically, you know, lived in marketing and growth organizations or product organizations. Braze actively sells into all 3, of those organizations across our customer base. Of course, we predominantly sell into a CMO budget, but we see examples of the others across the board. And so I think in terms of how this evolves from here, you know, the key thing for us is just where does responsibility lie for turning your customers into the best versions of themselves. For strengthening relationships, and for really coordinating those experiences. And I think there is gonna be we are gonna keep on enhancing their productivity certainly. But that vision of really having the marketer ascend into the role of the strategic conductor and the composer of those strategies. You know, I think that the value of having human ingenuity, creativity, and judgment and attachment the business strategies in the loop and that is going to persist ad infinitum. So There are no more questions at this time. Operator: I would now like to turn the call over to Bill for closing remarks. William Magnuson: Yeah. Thank you everyone for joining the call today. We appreciate your continued interest in Braze and your support, and we are looking forward to speaking with you soon. Cheers. Before you buy stock in Braze, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Braze wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Braze. The Motley Fool has a disclosure policy. Braze (BRZE) Q1 2027 Earnings Transcript was originally published by The Motley Fool

Realizes 30% reported and 27% organic year-over-year revenue growth in the fiscal first quarter of 2027 Trailing twelve month dollar-based net retention rises to 110% in the first quarter of 2027 NEW YORK, May 27, 2026--(BUSINESS WIRE)--Braze (Nasdaq: BRZE) the leading customer engagement platform that empowers brands to Be Absolutely Engaging™, today announced results for its fiscal quarter ended April 30, 2026. "We are off to a strong start in fiscal year 2027, delivering the fourth straight quarter of organic revenue acceleration, driven by strong demand for our AI-powered customer engagement platform," said Bill Magnuson, cofounder and CEO of Braze. "The strong market momentum we experienced at the end of fiscal year 2026 carried directly into this quarter. Our AI solutions, including BrazeAI Operator™, BrazeAI Agent Console™, and BrazeAI Decisioning Studio™ are already delivering measurable results for customers. The world's leading brands are increasingly looking to transform their businesses through our platform as they deepen their direct-to-consumer relationships and build their futures on Braze. The strength of our results validates our product leadership, go-to-market approach, and financial strategy, positioning Braze to become the global standard for customer engagement." Fiscal First Quarter 2027 Financial Highlights Revenue was $211.0 million compared to $162.1 million in the first quarter of the fiscal year ended January 31, 2026, up 30.2% year-over-year, driven primarily by new customers, upsells, and renewals. Subscription revenue in the quarter was $195.2 million compared to $154.9 million in the first quarter of the fiscal year ended January 31, 2026, and professional services and other revenue was $15.8 million compared to $7.2 million in the first quarter of the fiscal year ended January 31, 2026. Remaining performance obligations as of April 30, 2026 were $1,079.2 million, of which $670.3 million is current, which the company defines as less than one year. GAAP gross margin was 65.7% compared to 68.6% in the first quarter of the fiscal year ended January 31, 2026. Non-GAAP gross margin was 67.4% compared to 69.3% in the first quarter of the fiscal year ended January 31, 2026. Dollar-based net retention for all customers for the trailing 12 months ended April 30, 2026 and April 30, 2025 was 110% and 109%, respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of $500,000 or more was 111% compared to 112% in the first quarter of the fiscal year ended January 31, 2026. Total customers increased to 2,713 as of April 30, 2026 from 2,342 as of April 30, 2025; 349 of the company’s customers had ARR of $500,000 or more as of April 30, 2026, compared to 262 customers as of April 30, 2025. GAAP operating loss was $27.5 million compared to an operating loss of $40.2 million in the first quarter of the fiscal year ended January 31, 2026. A primary contributor to the operating loss in the quarter included $33.6 million of stock-based compensation expense. Non-GAAP operating income was $10.5 million compared to non-GAAP operating income of $2.8 million in the first quarter of the fiscal year ended January 31, 2026. GAAP net loss per share attributable to Braze common stockholders, basic and diluted, of $0.24 based on 110.8 million weighted average shares outstanding in the first quarter of the fiscal year ending January 31, 2027, compared to GAAP net loss per share attributable to Braze common stockholders, basic and diluted, of $0.34, based on 104.6 million weighted average shares outstanding in the first quarter of the fiscal year ended January 31, 2026. Non-GAAP net income per share attributable to Braze common stockholders, diluted, was $0.10 based on 112.9 million weighted average shares outstanding in the first quarter of the fiscal year ending January 31, 2027, compared to non-GAAP net income per share attributable to Braze common stockholders, diluted, of $0.07 based on 108.0 million weighted average shares outstanding in the first quarter of the fiscal year ended January 31, 2026. Net cash provided by operating activities was $28.1 million compared to net cash provided by operating activities of $24.1 million in the first quarter of the fiscal year ended January 31, 2026. Free cash flow was $26.8 million compared to $22.9 million in the first quarter of the fiscal year ended January 31, 2026. Total cash and cash equivalents, restricted cash, and marketable securities was $391.5 million as of April 30, 2026 compared to $415.9 million as of January 31, 2026. Business Highlights Notable new business wins and existing customer expansions in the quarter included Bondora Group, ClassPass, Denny’s, Deuna, Kueski, NRMA, Regal Cinemas, Salomon, and Subway. Hosted nearly 1,200 in-person attendees at City x City London, Braze’s largest gathering of prospects and customers outside of the U.S., for an event centered on shaping the future of AI-driven customer engagement. Released the Forrester Total Economic Impact™ Of Braze study* which examines the combined business impact of the Braze platform and BrazeAI Decisioning Studio™ and finds that a composite organization using the Braze platform achieved an estimated 457% return on investment over three years, with a net present value of $23.5 million and payback in less than six months. Innovations Announced Braze Creative Studio, including new integrations with Figma and Canva, which connect creative execution with real-time data, intelligence, and cross-channel delivery, thus enabling brands to transform generic assets into relevant, memorable brand experiences. Made BrazeAI Operator™ generally available months ahead of schedule. Operator is a companion that provides a unified experience for accessing AI to build campaigns, uncover data insights, answer questions and greatly simplify execution. Amplified with a major public launch at City x City London in April, including new innovations added since general availability such as a unified experience to access AI while creating or modifying campaigns, with additional enhancements currently in beta. Made BrazeAI Agent Console™ generally available months ahead of schedule, and launched to the public at City x City London in April. Agent Console brings the power of generative and agentic AI directly into Braze Canvas and Catalogs. Additional innovation introduced after general availability includes enabling automated agents to run personalized campaigns and manage two-way customer engagement to drive ROI, with much more to come in beta. Management Team Updates Chris Lal joined the company as General Counsel on May 15, 2026 to lead global legal, strategic and governance matters, including intellectual property, privacy, commercial, corporate, employment and responsible-AI initiatives. Mr. Lal brings deep experience both as a business leader and a corporate and securities attorney, having led legal functions at companies across data analytics, technology, e-commerce and retail. Nick Rockwell will join the company as Chief Information Officer to lead compliance, data governance, AI transformation, enterprise business data flows, and corporate IT initiatives effective June 1, 2026. Mr. Rockwell brings extensive experience across media, publishing and technology organizations, building digital products for mass audiences. The company appointed Pankaj Malik, currently Chief Accounting Officer, as its Interim Chief Financial Officer effective May 29, 2026. Mr. Malik has led the Braze accounting department since 2021. Financial Outlook Braze is initiating guidance for the fiscal second quarter ending July 31, 2026, and updating guidance for the fiscal year ending January 31, 2027. Braze has not reconciled its guidance as to non-GAAP operating income, non-GAAP net income or non-GAAP net income per share, diluted, to their most directly comparable GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Braze’s stock price. Accordingly, reconciliations are not available without unreasonable effort, although it is important to note that these factors could be material to Braze’s results calculated in accordance with GAAP. Conference Call Information What: Braze Fiscal First Quarter 2027 Financial Results Conference CallWhen: Wednesday, May 27th at 4:30 pm EDT / 1:30 pm PDTWebcast & Supplemental Data: investors.braze.com Replay: A webcast replay will be available on Braze’s investor site at investors.braze.com. Supplemental and Other Financial Information Supplemental information, including an accompanying financial presentation and other information can be accessed through Braze’s investor website at investors.braze.com. Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, basic and diluted, and non-GAAP free cash flow. Braze defines non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating income (loss), non-GAAP operating margin, and non-GAAP net income (loss) as the respective GAAP balances, adjusted for stock-based compensation expense, employer taxes related to stock-based compensation, charitable contribution expense, acquisition-related expense, and amortization of intangible assets. Braze defines non-GAAP free cash flow as net cash provided by (used in) operating activities, minus purchases of property and equipment and minus capitalized internal-use software costs. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures. Braze uses this non-GAAP financial information internally in analyzing its financial results and believes that this non-GAAP financial information, when taken collectively with GAAP financial measures, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in the United States (GAAP), and may be different from similarly titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in Braze’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by Braze’s management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below in the financial statement tables included below in this press release for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Braze encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly and fiscal year financial results, including this press release, and not to rely on any single financial measure to evaluate Braze’s business. Definition of Other Business Metrics Customer: Braze defines a customer, as of period end, as the separate and distinct, ultimate parent-level entity that has an active subscription with Braze to use its products. A single organization could have multiple distinct contracting divisions or subsidiaries, all of which together would be considered a single customer. Annual Recurring Revenue (ARR): Braze defines ARR as the annualized value of customer subscription contracts, including certain premium professional services that are subject to contractual subscription terms, as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which Braze is negotiating a renewal). Braze’s calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. ARR may decline or fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with Braze’s products and professional services, pricing, competitive offerings, economic conditions or overall changes in Braze’s customers’ spending levels. ARR should be viewed independently of revenue and does not represent Braze’s GAAP revenue on an annualized basis or a forecast of revenue, as it is an operating metric that can be impacted by contract start and end dates and renewal rates. Dollar-Based Net Retention Rate: Braze calculates dollar-based net retention rate as of a period end by starting with the ARR from a cohort of customers as of 12 months prior to such period-end (the Prior Period ARR). Braze then calculates the ARR from the same cohort of customers as of the end of the current period (the Current Period ARR). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but excludes ARR from new customers in the current period. Braze then divides the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. Braze then calculates the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate. Organic Revenue: Braze defines organic revenue as total GAAP revenue, less GAAP revenue generated from business units acquired within the prior 12 months. Remaining Performance Obligations: The transaction price allocated to remaining performance obligations represents amounts under non-cancelable contracts expected to be recognized as revenue in future periods, and may be influenced by several factors, including seasonality, the timing of renewals, the timing of service delivery and contract terms. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Braze’s financial outlook for the second quarter of and the full fiscal year ending January 31, 2027, the anticipated performance of and customer value from its products and features, including its BrazeAI products and features, and its future business strategies and plans. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "hope," "intend," "may," "might," "potential," "predict," "project," "shall," "should," "target," "will" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on Braze’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Braze’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) the extent to which Braze achieves anticipated financial targets; (2) Braze’s ability to realize its broader strategic and operating objectives; (3) unstable market and economic conditions may have serious adverse consequences on Braze’s business, financial condition and share price; (4) Braze’s recent rapid revenue growth may not be indicative of its future revenue growth; (5) Braze’s history of operating losses; (6) Braze’s limited operating history at its current scale; (7) Braze’s ability to successfully manage its growth; (8) the accuracy of estimates of market opportunity and forecasts of market growth and the impact of global and domestic socioeconomic events on Braze’s business; (9) Braze’s ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements or preferences; (10) Braze’s ability to attract new customers and renew existing customers; (11) the competitive markets in which Braze participates and the intense competition that it faces; (12) Braze’s ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, evolving industry standards or changing regulations; and (13) Braze’s reliance on third-party providers of cloud-based infrastructure; as well as other risks and uncertainties discussed in the "Risk Factors" section of Braze’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 25, 2026 and other subsequent filings Braze makes with the SEC from time to time, including Braze’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2026, that will be filed with the SEC. The forward-looking statements included in this press release represent Braze’s views only as of the date of this press release and Braze assumes no obligation, and does not intend to update these forward-looking statements, except as required by law. Third Party Reports *The Total Economic Impact™ Of Braze, a commissioned study conducted by Forrester Consulting on behalf of Braze, April 2026. Results are based on a three-year composite organization representative of interviewed customers. Operational Data Operational and other internal data included in this press release is approximate and is based on various assumptions. This data is tracked with internal systems and tools that are not independently verified by any third party, and is accordingly subject to adjustment. The methodology underlying the data included in this press release may vary from prior years and prior year results may not be directly comparable to current results. About Braze Braze is the leading customer engagement platform that empowers brands to Be Absolutely Engaging™. Braze helps brands deliver great customer experiences that drive value both for consumers and for their businesses. Built on a foundation of composable intelligence, BrazeAI™ allows marketers to combine and activate AI agents, models, and features at every touchpoint throughout the Braze Customer Engagement Platform for smarter, faster, and more meaningful customer engagement. From cross-channel messaging and journey orchestration to Al-powered decisioning and optimization, Braze enables companies to turn action into interaction through autonomous, 1:1 personalized experiences. The company has been consistently recognized as a Leader in marketing technology by industry analysts, and was named a G2 "Best of Marketing and Digital Advertising Software Product" in 2026. Braze was also named a 2026 Best Places to Work by Built In, a 2025 America’s Greenest Companies by Newsweek, and a 2025 Fortune Best Workplace in Technology™ by Great Place To Work®. The company is headquartered in New York with 15 offices across the Americas, EMEA, and APAC. Learn more at braze.com. Braze uses its Investor website at investors.braze.com as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor its investor relations website in addition to following its press releases, blog posts on its website (braze.com), SEC filings and public conference calls and webcasts. Selected Financial Data Braze is a registered trademark of Braze, Inc.All product and company names herein may be trademarks of their registered owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20260527699075/en/ Contacts Investors:Christopher [email protected] (609) 964-0585 Media:Steve [email protected]