Braze(BRZE) - 2026 Q2 - Quarterly Results

Revenue and Growth - Revenue for the fiscal second quarter 2026 was $180.1 million, a 23.8% increase year-over-year from $145.5 million[2] - Subscription revenue was $171.8 million, up from $140.0 million in the same quarter last year, while professional services and other revenue increased to $8.3 million from $5.5 million[2] - Revenue for the three months ended July 31, 2025, was $180,111,000, representing a 23.7% increase from $145,499,000 in the same period of 2024[24] - Gross profit for the six months ended July 31, 2025, was $233,092,000, up from $192,990,000 in 2024, indicating a growth of 20.8%[24] - The company reported a non-GAAP net income of $24.169 million for the six months ended July 31, 2025, compared to $3.585 million in the same period of 2024, indicating a significant improvement[35] Customer Metrics - Total customers increased to 2,422 from 2,163 year-over-year, with 282 customers having ARR of $500,000 or more, up from 222[2] - Dollar-based net retention rate for all customers was 108%, down from 114% a year ago; for customers with ARR of $500,000 or more, it was 111%, down from 117%[2] Financial Performance - GAAP gross margin decreased to 67.7% from 70.2% year-over-year, while non-GAAP gross margin fell to 69.3% from 70.9%[2] - GAAP operating loss was $38.8 million, compared to a loss of $28.0 million in the same quarter last year, primarily due to $39.5 million in stock-based compensation[2] - Non-GAAP operating income was $6.0 million, an increase from $4.2 million year-over-year[2] - Net loss attributable to Braze, Inc. for the three months ended July 31, 2025, was $27,899,000, compared to a net loss of $22,999,000 in 2024, showing an increase in losses of 21.3%[24] - For the six months ended July 31, 2025, Braze, Inc. reported a net loss of $63.404 million, compared to a net loss of $58.856 million for the same period in 2024, reflecting an increase in losses of approximately 7.5%[31] Cash Flow and Assets - Free cash flow was $3.5 million, down from $7.2 million in the same quarter last year[8] - Cash and cash equivalents as of July 31, 2025, were $80,979,000, a slight decrease from $83,062,000 as of January 31, 2025[28] - Total assets increased to $1,022,537,000 as of July 31, 2025, from $870,998,000 as of January 31, 2025, marking a growth of 17.4%[28] - Total stockholders' equity rose to $598,881,000 as of July 31, 2025, compared to $474,861,000 as of January 31, 2025, indicating a 26.2% increase[28] - The company generated net cash provided by operating activities of $31.096 million for the six months ended July 31, 2025, slightly up from $31.007 million in the prior year[31] Expenses - Total operating expenses for the three months ended July 31, 2025, were $160,643,000, compared to $130,029,000 in 2024, reflecting a 23.5% increase[24] - Research and development expenses for the three months ended July 31, 2025, were $41,250,000, up from $33,141,000 in 2024, reflecting a 24.5% increase[24] - The company reported a total stock-based compensation expense of $39,549,000 for the three months ended July 31, 2025, compared to $29,822,000 in 2024, an increase of 32.7%[25] - Braze's total sales and marketing expenses for the six months ended July 31, 2025, were $156.726 million, up from $138.396 million in the prior year, reflecting a 13.2% increase[34] Guidance - Guidance for fiscal Q3 2026 revenue is projected between $183.5 million and $184.5 million, with full fiscal year guidance set at $717.0 million to $720.0 million[5]