Reports Q2 Revenue $227.2M, Non-GAAP EPS $0.19, Raises FY27 Guidance

Braze reported revenue of $227.2 million for the second fiscal quarter of 2027, an increase from $180.1 million in the same quarter of the prior fiscal year. Subscription revenue for the quarter reached $207.7 million, up from $171.8 million in the second quarter of fiscal year 2026. Professional services and other revenue also saw a significant rise, coming in at $19.6 million compared to $8.3 million in the previous year's second quarter.

The company's GAAP gross margin for Q2 FY2027 was 66.8%, a slight decrease from 67.7% in Q2 FY2026. Non-GAAP gross margin was 68.6%, also down from 69.3% in the prior year's comparable quarter. Braze reported a GAAP operating loss of $18.1 million, which is an improvement from the $38.8 million operating loss in the second quarter of fiscal year 2026. Non-GAAP operating income was $22.0 million, up from $6.0 million in the same period last year.

Braze's net cash provided by operating activities increased to $24.2 million from $7.0 million in Q2 FY2026. Free cash flow also saw a substantial rise to $21.7 million, compared to $3.5 million in the prior year's second quarter. The company’s total cash and cash equivalents, restricted cash, and marketable securities stood at $413.9 million as of July 31, 2026.

Remaining performance obligations as of July 31, 2026, were $1,092.5 million, with $691.1 million classified as current. The dollar-based net retention rate for all customers for the trailing 12 months ended July 31, 2026, was 110%, an increase from 108% for the period ended July 31, 2025. For customers with annual recurring revenue of $500,000 or more, the retention rate was 112%, up from 111% in the prior year. The total number of customers increased to 2,789 from 2,422.

Looking ahead, Braze updated its fiscal year 2027 revenue guidance to a range of $910.0 million to $913.0 million. The company also provided guidance for non-GAAP operating income between $75.5 million and $76.5 million, non-GAAP net income between $72.5 million and $73.5 million, and diluted non-GAAP net income per share of $0.64 to $0.65 for the full fiscal year.