Braze (NASDAQ:BRZE) reported fiscal fourth-quarter 2026 results that management said reflected accelerating momentum in demand for its customer engagement platform, alongside continued progress on operating efficiency and AI-driven product development.
Quarterly results show revenue growth and improving retention
For the fiscal fourth quarter, Braze posted revenue of $205.2 million, up 28% year-over-year and 8% sequentially. CFO Isabelle Winkels said the quarter was driven by “a combination of existing customer contract expansions, renewals, and new business.” BrazeAI Decisioning Studio (formerly OfferFit) contributed $5.7 million in revenue during the period, which the company said implied organic revenue growth of 24.3% year-over-year.
Customer metrics also improved. Total customers rose 14% year-over-year to 2,609 as of January 31, with net additions of 81 customers sequentially. Large customers grew 35% year-over-year to 333 and contributed 64% of total annual recurring revenue, up from 62% a year earlier. Winkels noted that customers are counted when service is effective, meaning some new logos signed in the quarter will show up in the first-quarter fiscal 2027 customer count.
Bookings strength and RPO surpasses $1 billion
Management emphasized strength in bookings and contract commitments. Magnuson said Q4 bookings rose more than 50% year-over-year, with “a new high water mark for average sales price” and particular strength in enterprise. He also cited large deal activity, including 29 deals above $500,000, seven $1 million-plus deals, and an expansion that brought the company’s “eight-figure customer count to 4.”
Winkels reported total remaining performance obligations (RPO) of just over $1 billion, up 30% year-over-year and 16% sequentially. Current RPO was $642 million, up 27% year-over-year and 12% sequentially. She attributed the RPO growth to strong Q4 bookings, healthy renewals, a large quarter for available renewal dollars, and a small increase in average contract duration.
Magnuson also said that early in fiscal 2027, Braze surpassed $800 million in annual recurring revenue.
Profitability and cash flow; margin dynamics tied to messaging and infrastructure
On profitability, Winkels said non-GAAP operating income was $15 million, or 7% of revenue, compared with $8 million, or 5%, in the prior-year quarter. Non-GAAP net income attributable to shareholders was $11 million, or $0.10 per share, compared with $12 million, or $0.12 per share, a year earlier. She added that results were negatively impacted by a $5 million purchase accounting adjustment related to a deferred tax liability from the OfferFit acquisition; excluding that item, non-GAAP net income and EPS would have been $16 million and $0.15.
Non-GAAP gross margin declined to 67.2% from 69.9% a year ago. Winkels said the decrease was driven primarily by higher premium messaging volumes and hosting costs, partially offset by improved personnel cost efficiencies. She told analysts the company continues to monitor premium messaging trends closely and said some newer products, including Agent Console, carry better-than-company-average margins but are starting from a small base.
Braze ended the quarter with approximately $416 million in cash equivalents, restricted cash, and marketable securities. Cash provided by operations was $19 million, compared with $17 million in the prior-year quarter. Free cash flow was $14 million, compared with $15 million a year earlier. Winkels reiterated that free cash flow can fluctuate by quarter based on the timing of customer and vendor payments.
BrazeAI product roadmap and go-to-market execution in focus
Magnuson attributed part of the quarter’s performance to customer receptivity to Braze’s AI roadmap, particularly following the company’s Forge customer conference. He said AI differentiation improved win rates and deal velocity as “competitor FUD just didn’t hold water” versus Braze’s product delivery pace. He also pointed to strengthening momentum with partners, including global agency groups and regional players.
During the call, Magnuson described the company’s platform positioning around infrastructure scale and integrated data and decisioning. He said that in calendar year 2025, Braze powered 4.5 trillion messages and Canvas actions, processed over 25 trillion data points, executed 3.1 trillion AI decisioning inferences, and made 8.7 trillion updates to its user profile system of record.
Braze also discussed recent product releases and adoption trends:
- BrazeAI Operator and Agent Console: Magnuson said both moved into general availability months ahead of schedule. He said that after a few weeks, more than two-thirds of customers were actively using Operator, while Agent Console adoption was growing week-over-week. Winkels added the company saw “immediate and persistent consumption” of flexible credits tied to Agent Console in its first month of release.
- Monetization mechanics: Magnuson said Agent Console consumes flexible credits under Braze’s consumption-based pricing, but revenue is recognized ratably over the contract term, similar to messaging volumes. He said usage could support renewals and upsells, while noting that consumption does not translate into immediate revenue recognition.
- BrazeAI Decisioning Studio (OfferFit): In response to questions about cross-selling and margins, Winkels said traction has been primarily within the installed base, with strong interest and pipeline. She said margin improvement efforts include investments in staffing for implementations and onboarding, ongoing product development, and expanding tiers to add more self-service offerings that would carry higher margins.
On go-to-market, management credited Chief Revenue Officer Ed McDonnell, who joined during fiscal 2026, with improving sales productivity. Winkels said there was no change in guidance philosophy, but cited momentum including more two-year contracts, larger contract sizes, strong upsells, and enterprise strength. She also said the company planned incremental sales capacity hiring as rep productivity improved.
Share repurchase authorization and fiscal 2027 guidance
Braze’s board authorized a $100 million share repurchase program. Winkels said the program includes a planned $50 million accelerated share repurchase transaction expected to be entered into before the end of the first quarter, and that the company’s share count and EPS guidance only reflect the estimated impact of that $50 million ASR.
For the first quarter of fiscal 2027, Braze guided for revenue of $204.5 million to $205.5 million, implying about 26% year-over-year growth at the midpoint. Winkels noted the first quarter has three fewer days than the other quarters in the year. The company expects non-GAAP operating income of $10 million to $11 million, and non-GAAP net income of $11 million to $12 million, or $0.10 to $0.11 per share, based on about 112 million weighted-average diluted shares.
For the full fiscal year 2027, Braze forecast revenue of $884 million to $889 million, representing about 20% year-over-year growth at the midpoint. The company expects non-GAAP operating income of $69 million to $73 million, implying an 8% operating margin at the midpoint, which Winkels said would be more than 400 basis points higher than fiscal 2026.
Management said it plans to provide more updates on Operator and Agent Console adoption at its City by City London event on April 23.
About Braze (NASDAQ:BRZE)
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.
