Braze Delivers Strong Q1 2027 Results, Exceeding Revenue Guidance
Braze, Inc. (NASDAQ: BRZE) reported its fiscal first-quarter 2027 earnings after the bell Thursday, posting revenue of $187.3 million, up 32% year-over-year and above the high end of its previous guidance range of $183–$185 million. The customer engagement platform also reported a narrower adjusted net loss of $8.1 million, or $0.08 per share, compared to a loss of $14.5 million, or $0.14 per share, in the same quarter last year.
Key metrics showed continued momentum: subscription revenue rose 33% to $176.5 million, while professional services contributed $10.8 million. Braze added 38 new customers in the quarter, bringing its total to over 2,150, and its dollar-based net retention rate held steady at 120%, signaling strong upsell and cross-sell activity within existing accounts.
“Our Q1 performance reflects the growing demand for real-time, cross-channel customer engagement as brands seek to deepen loyalty in an increasingly competitive digital landscape,” said Bill Magnuson, co-founder and CEO of Braze, on the earnings call. “We saw particular strength in the retail, financial services, and media verticals, and expanded our partnership with major cloud providers.”
Looking ahead, Braze guided second-quarter revenue in the range of $193–$195 million, slightly above the consensus estimate of $192.6 million. For the full fiscal year 2027, the company now expects revenue between $795–$802 million, representing growth of 25–27% year-over-year.
The broader SaaS earnings season has underscored a bifurcated market: while many companies are grappling with elongated sales cycles and budget scrutiny, Braze’s focus on marketing return-on-investment and AI-driven personalization has helped it stand out. The company’s recent launch of BrazeAI, a suite of generative AI capabilities for campaign optimization, has also been a differentiator in winning competitive deals.
However, analysts on the call pressed management on the path to non-GAAP operating profitability. CFO Isabelle Guis pointed to ongoing investments in R&D and go-to-market as necessary to capture the expanding total addressable market, which she estimates at over $40 billion. Shares were up approximately 6% in after-hours trading following the release.