Braze Q1 Earnings Call Highlights

Braze, Inc. reported fiscal Q1 2027 revenue of $211 million, up more than 30% year over year and above expectations, marking the fourth straight quarter of accelerating growth, according to the company. Braze raised revenue and earnings guidance and repurchased $50 million of shares. Analysts maintained a Moderate Buy consensus with a $36 price target, while institutions own over 90% of shares.

Braze shares fell 4.2% Thursday after the company’s Q1 report. After the close Wednesday, Braze reported non-GAAP EPS of $0.10 on $211M sales, beating Wall Street’s revenue estimate and raising full-year sales guidance to $895M–$899M. Adjusted gross margin fell to 67.4% from 69.3%.

Cantor Fitzgerald’s Matthew VanVliet reiterated Overweight on Braze (BRZE) with a $38 target, citing a 2.8% revenue and cRPO beat vs consensus; the $6m beat came from Professional Services, while subscriptions were in-line. He cited NRR up to 110% and raised FY2027 revenue guidance by $10.5m to imply 21.5% growth. DA Davidson’s Clark Wright kept Buy and a $33 target, noting Q4 revenue up 30% to $211m and raised FY2027 guidance midpoint by $10m to $897m. Shares were down 6.02% to $23.10.

Premarket movers included Dollar Tree, up more than 11%, after Q1 adjusted EPS of $1.74 vs $1.53 expected, revenue and guidance beats, and a DoorDash delivery partnership. Snowflake jumped nearly 37% on Q1 adjusted EPS of 39 cents and revenue of $1.39B vs $1.32B expected, plus a plan to spend $6B on AWS over five years.

Braze Inc reported fiscal Q1 2027 revenue of $211 million, up 30% year over year and 3% sequentially, and record free cash flow of $27 million, according to the company. Non-GAAP operating margin improved by over 300 bps. Braze raised Q2 and full-year revenue guidance, expecting 22% YoY growth, and said net customer additions rose 104 sequentially and large customers grew 33% YoY. CFO Isabel Winkles said she is departing.

In a Q&A from Braze’s Q1 2027 earnings call, CFO Isabelle Winkles said a bottleneck in Decisioning Studio wasn’t separately quantified for Q1, but hiring momentum improved by adding capacity in EMEA and APAC. CEO Bill Magnuson said customers are prioritizing AI for customer engagement, boosting deal velocity and win rates. Winkles noted higher professional services revenue from packaging changes and forward-deployed engineers, with gross-margin effects mainly from messaging costs; US SMS carrier