Financial Data and Key Metrics Changes - The company reported revenue of $162.1 million for Q1 2026, representing a nearly 20% year-over-year increase [7][19] - Non-GAAP operating margin improved by over 900 basis points year-over-year, with non-GAAP net income of over $7 million and free cash flow of nearly $23 million [7][24] - Total remaining performance obligation (RPO) was $829.3 million, up 26% year-over-year, while current RPO increased by 24% year-over-year to $522 million [21] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 96% of total revenue, with the remaining 4% from professional services and onboarding fees [19] - The customer count rose to 2,342, an increase of 240 year-over-year and 46 sequentially [19] - Large customers (those spending at least $500,000 annually) grew by 24% year-over-year to 262, contributing 62% to total ARR [20] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 46% of total revenue, up from 45% in the previous quarter and 44% year-over-year [21] - Dollar-based net retention (DBNR) was 109 overall and 112 for large customers, indicating strong customer engagement [20] Company Strategy and Development Direction - The company aims to become the leading customer engagement platform globally, focusing on AI-driven solutions and first-party data utilization [7][10] - The acquisition of OfferFit is expected to enhance the company's AI capabilities and customer engagement strategies [13][14] - The company is investing in community engagement and marketing strategies to elevate customer experience and drive growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that global trade concerns have not materially affected deal cycles, and strong bookings were achieved in Q1 [7][8] - The competitive landscape is viewed positively, with the company continuing to gain market share against legacy competitors [10][35] - Management expressed confidence in improving churn rates and overall business health through strategic investments and operational efficiencies [36][37] Other Important Information - The company expects Q2 revenue to be in the range of $171 million to $172 million, representing approximately 18% year-over-year growth [26] - The OfferFit acquisition is anticipated to add approximately two percentage points to year-over-year revenue growth for the full fiscal year [28] - The company plans to integrate OfferFit's technology into its platform to enhance customer engagement and decision-making capabilities [14][15] Q&A Session Summary Question: Reconciling prepared remarks on sequential growth and CRPO - Management indicated that CRPO is sensitive to renewal dollars and emphasized revenue as a key metric to track macro stability [32][34] Question: Insights on Project Catalyst performance - Management noted that Project Catalyst is in private beta and is expected to automate decision-making processes, enhancing customer engagement [42][44] Question: Renewal cadence and OfferFit pricing - Management confirmed that Q1 was a heavy renewal quarter, with expectations for a drop in Q2 and Q3, followed by another increase in Q4 [63] - OfferFit will maintain its pricing model initially, with potential for future integration into Braze's pricing structure [66] Question: Customer reception of flexible credits model - Management reported positive customer feedback on the flexible credits model, which has shortened negotiation times and increased usage flexibility [81][84] Question: Commentary on macro uncertainty and marketing spend - Management acknowledged that while macro conditions are uncertain, marketing dollars continue to be spent on consolidation and optimization [90][91]