Braze Posts 26% Revenue Growth on AI-Driven Customer Engagement Surge — Braze, Inc.

Event summary

Braze reported $227.2 million in revenue for Q2 2027, up 26.2% YoY, driven by new customers, upsells, and renewals.
Subscription revenue grew to $207.7 million, while professional services revenue increased to $19.6 million.
Dollar-based net retention rates improved to 110% for all customers and 112% for customers with ARR over $500,000.
Braze added 367 new customers, bringing the total to 2,789, with 361 customers generating ARR over $500,000.
Non-GAAP operating income reached $22.0 million, compared to $6.0 million in the same period last year.

The big picture

Braze's strong Q2 2027 results highlight the growing demand for AI-driven customer engagement solutions. The company's ability to deliver measurable business impact through its platform is attracting new customers and driving upsells, positioning Braze as a key player in the rapidly evolving marketing technology landscape. The strategic partnerships with AWS and Databricks further solidify Braze's role in the composable intelligence space, enabling it to compete with other leading customer engagement platforms.

What we're watching

AI Integration: The pace at which Braze's AI solutions, including BrazeAI Operator and BrazeAI Decisioning Studio, are being adopted will determine the company's ability to maintain its growth trajectory.
Operational Efficiency: Whether Braze can sustain its improving operating leverage and free cash flow growth amid increasing competition in the customer engagement platform space.
Strategic Partnerships: How Braze's expanded collaboration with AWS and broader integration with Databricks CustomerLake will impact its market position and customer acquisition strategy.