Braze Powers Ahead in Q1 2027 with Record Revenue Growth and Market Leadership
Braze, a leading customer experience platform, has made a strong start to fiscal year 2027, reporting record revenue growth and solidifying its position as a market leader. In the first quarter of this year, Braze delivered $211 million in revenue, marking a 30% increase from the same period last year and a 3% rise from the previous quarter.
According to Christopher Ferris, Vice President of Braze Investor Relations, the company's strong market momentum and buyer trends continued into the first quarter. Brands are rapidly transforming their businesses with AI and leveraging investments in first-party data and direct-to-consumer relationships. This has driven robust bookings for Braze, particularly in the enterprise segment.
The company's customer additions also saw a significant increase, rising 16% year-over-year to reach 104 new customers. Notably, customer spending $500,000 or more annually grew by 33% year-over-year, while the number of customers with $1 million-plus annual spend rose by 27%. Braze achieved six $1 million-plus deals and expanded its eight-figure customer count to five.
Braze's Chief Executive Officer, Bill Magnuson, expressed satisfaction with the company's performance in a statement during the conference call. "We're off to a great start in fiscal 2027, reporting a quarter that demonstrates our market leadership and go-to-market momentum," he said.
The company also reported improved operating efficiencies, with non-GAAP operating margin increasing by over 300 basis points year-over-year. Additionally, Braze generated strong operating cash flow and record free cash flow of $27 million in the quarter.
Braze's market leadership is further underscored by its customer retention rates. The company reported a trailing 12-month dollar-based net retention rate of 110%, up from 100% in the prior period. This demonstrates Braze's ability to retain customers and grow revenue over time.
Looking ahead, Braze has raised its revenue guidance for the second quarter and full year. The company is on track to achieve a 400 basis point operating margin expansion promised for the fiscal year. With its strong market momentum, customer additions, and revenue growth, Braze is well-positioned for continued success in fiscal year 2027.
