Braze Inc. (NASDAQ:BRZE) is a global leader in customer engagement technology, empowering some of the world’s most recognizable brands to create personalized, data-driven, and impactful connections with their customers. Founded in 2011 by Bill Magnuson, Jon Hyman, and Mark Ghermezian, the company was originally known as Appboy before rebranding to Braze in 2017 to better reflect its evolution from a mobile-first marketing tool to a comprehensive cross-channel engagement platform. Headquartered in New York City, Braze has expanded its footprint across North America, Europe, and the Asia-Pacific region, serving thousands of customers worldwide and supporting billions of monthly active users.
The company’s platform has been designed to unify customer engagement across multiple channels, including email, in-app messaging, SMS, push notifications, and web campaigns, enabling marketers to create seamless and personalized customer journeys. By leveraging real-time data streaming and advanced orchestration capabilities, Braze allows businesses to deliver highly relevant messages at scale, improving both customer satisfaction and return on investment. This architecture differentiates Braze from traditional marketing software by offering flexibility, speed, and integration with a wide range of third-party tools that marketers rely on every day.
Braze’s success is rooted in its ability to meet the evolving needs of modern businesses in an era defined by digital transformation. The shift toward first-party data, stricter privacy regulations, and rising customer expectations for personalization have placed immense pressure on companies to rethink engagement. Braze has positioned itself as a trusted partner in this transformation by embedding artificial intelligence and machine learning into its platform. These capabilities enable predictive insights, dynamic segmentation, and campaign automation, giving businesses the tools they need to stay competitive in a fast-changing marketplace.
Since its initial public offering in 2021, which raised over $500 million, Braze has continued to scale rapidly, growing its customer base, expanding internationally, and consistently delivering strong revenue growth. The company has earned recognition from industry analysts, including Gartner, Forrester, and IDC, for its leadership in the cross-channel marketing hub category, further cementing its reputation as a technology pioneer. In addition to its technological strengths, Braze emphasizes a culture of innovation, diversity, and social responsibility, releasing annual ESG reports that highlight its commitment to sustainable and ethical business practices.
Today, Braze supports over 2,400 customers across industries ranging from retail and healthcare to media, travel, and dining. The platform has delivered trillions of customer interactions, proving its scalability and reliability for enterprise-level engagement. By combining visionary leadership, a robust financial foundation, and a relentless focus on technological innovation, Braze has established itself as a transformative force in the customer engagement space. With a total addressable market exceeding $29 billion, Braze continues to build on its mission to help brands foster lasting relationships with customers in a digital-first world.
Strong Revenue Growth Reinforces Market Demand
Braze reported revenue of $180.1 million, up 23.8% year-over-year compared to $145.5 million in the same quarter last year. This growth was driven primarily by new customer acquisitions, strong renewals, and upselling existing accounts, underscoring Braze’s ability to execute in a competitive SaaS environment. Subscription revenue rose to $171.8 million from $140.0 million, reflecting the sticky, recurring nature of Braze’s business model. Professional services and other revenue also increased significantly, reaching $8.3 million compared to $5.5 million last year.
The company’s remaining performance obligations (RPO) stood at a healthy $862.2 million, with $558.2 million current, reflecting the near-term visibility and durability of demand. This backlog highlights how Braze’s long-term contracts with enterprise customers ensure steady revenue streams, providing confidence for both management and investors.
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Expanding Customer Base and High Retention Metrics
As of July 31, 2025, Braze’s customer count grew to 2,422, up from 2,163 a year earlier. Notably, the company expanded its roster of large accounts, with 282 customers contributing more than $500,000 in annual recurring revenue (ARR), compared to 222 such customers last year. This 27% increase in enterprise-scale customers reflects Braze’s growing penetration among large organizations with significant marketing budgets.
Dollar-based net retention (DBNR) remained robust at 108%, a sign of Braze’s ability to expand revenue from existing clients despite macroeconomic headwinds. For larger accounts with ARR of $500,000 or more, DBNR was even stronger at 111%, though down slightly from 117% last year. This retention strength confirms that Braze’s platform is integral to customer operations, ensuring consistent growth opportunities through upselling and cross-selling.
Profitability Trends Signal Long-Term Leverage
Despite operating in a growth phase, Braze continues to demonstrate improving profitability. Non-GAAP operating income rose to $6.0 million, compared to $4.2 million in the same quarter last year, while non-GAAP net income surged to $0.15 per share compared to $0.09 per share a year ago. This reflects the company’s discipline in scaling efficiently while continuing to invest in growth and innovation.
While GAAP operating loss widened to $38.8 million due to $39.5 million in stock-based compensation expense, this is a common feature for growth SaaS firms and does not overshadow Braze’s progress toward sustained profitability. Free cash flow for the quarter was $3.5 million, a positive indicator of financial health, even if slightly down from $7.2 million last year. Importantly, Braze still holds a significant cash balance of $368.3 million, giving it ample flexibility to fund growth, invest in R&D, and pursue new market opportunities.
AI-Powered Innovation Fuels Strategic Edge
Central to Braze’s bullish case is its continued investment in artificial intelligence and platform innovation. The recent launch of the Braze Model Context Protocol (MCP) Server is a major milestone, enabling large language models (LLMs) to connect seamlessly with Braze’s customer engagement data. This innovation empowers brands to harness generative AI for real-time personalization and smarter customer engagement strategies, positioning Braze as a technology leader at the intersection of marketing and AI.
Braze’s AI-driven approach—spanning smart segmentation, predictive analytics, intelligent orchestration, and real-time personalization—creates clear differentiation in a crowded market. By embedding AI into every layer of its platform, Braze not only enhances customer experiences but also ensures high ROI for marketers, as noted by cofounder and CEO Bill Magnuson.
High-Profile Customer Wins Underscore Platform Strength
The quarter also brought a series of high-profile customer wins and expansions, including DocMorris, Fogo de Chão, Gopuff, Kleinanzeigen, Laundryheap, Little Caesars, Metcash, Saily, Sweetgreen, and Wix. These wins span diverse industries such as healthcare, retail, dining, and technology, reflecting Braze’s broad applicability and versatility across sectors.
Each of these customers represents not just immediate revenue but long-term growth potential through deeper integration, upselling, and expansion into global operations. The fact that large, well-known brands continue to adopt Braze validates its value proposition and reinforces its position as a mission-critical marketing technology partner.
Guidance and Forward-Looking Momentum
For the third quarter of fiscal 2026, Braze expects revenue of $183.5–$184.5 million and non-GAAP operating income of $3.5–$4.5 million. For the full year, Braze raised its revenue guidance to $717–$720 million, while projecting non-GAAP net income of $45.5–$46.5 million, or $0.41–$0.42 per diluted share. This significant earnings acceleration reflects improving operational leverage and strong demand for Braze’s AI-powered engagement platform.
The guidance not only reinforces Braze’s momentum but also highlights management’s confidence in delivering profitable growth while continuing to expand its market reach. For investors, this represents a rare balance of top-line expansion and increasing bottom-line profitability, an especially compelling combination in the SaaS sector.
Conclusion: Why Braze Represents a Bullish Opportunity
Braze’s second-quarter results underscore why it is one of the most attractive growth stories in the customer engagement space. With 23.8% year-over-year revenue growth, a growing base of enterprise clients, 108% net retention, and expanding profitability, Braze demonstrates resilience and scalability. Its AI-driven innovation, highlighted by the MCP Server launch, provides a technological edge that will be increasingly important as personalization and data-driven marketing continue to dominate global trends.
With a strong cash balance, improving free cash flow, high-profile customer wins, and raised full-year guidance, Braze stands out as a SaaS company well-positioned for long-term growth. Investors looking for exposure to the booming customer engagement and AI-powered marketing space may find Braze Inc. a compelling bullish opportunity as it continues to execute with precision and expand its role as the go-to platform for personalized customer experiences.
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