Summary
Braze opened fiscal 2025 with revenue of $135.5 million in the first quarter, up 33.1% from $101.8 million in the prior-year quarter. Gross profit rose 31.6% to $90.9 million. GAAP gross margin slipped to 67.1% from 67.9%. The company still posted a GAAP operating loss of $40.1 million, but that loss narrowed from $41.9 million a year earlier. Net loss attributable to Braze narrowed to $35.6 million from $38.5 million. Diluted loss per share narrowed to $0.35 from $0.40. Operating margin improved to negative 29.6% from negative 41.2%. Non-GAAP operating loss was $10.0 million, compared with $16.0 million in the prior-year quarter. Non-GAAP net loss per share was $0.05, compared with $0.13.
Cash generation softened. Operating cash flow was $19.4 million, down 14.0% from $22.5 million in the prior-year quarter. Capital expenditures jumped to $6.9 million from $0.04 million, largely for new offices, including the New York City headquarters. Free cash flow, a non-GAAP measure, was $11.4 million, compared with $21.7 million. Deferred revenue, current portion, rose 26.6% to $229.3 million from $181.2 million. Remaining performance obligations rose 37.7% to $657.3 million from $477.5 million. That backlog gives Braze visibility, though the company still depends on renewals and expansion to convert it.
Customer metrics showed steady expansion but some moderation. Total customers grew to 2,102 from 1,866. Customers with annual recurring revenue of $500,000 or more rose to 212 from 164. Dollar-based net retention for all customers was 117%, down from 122%. For customers with ARR of $500,000 or more, dollar-based net retention was 119%, down from 124%. Monthly active users reached roughly 6.5 billion as of April 30, 2024, up from roughly 6.2 billion as of January 31, 2024. Braze added new business wins including Bauer Media Group, Bolt Technology, Country Road Group, Hugo Boss, Leonardo.ai, Property Finder, and Solaris Bank AG. Upsells included Etsy, Lime, MyEyeDr., Talkspace, and Yonder. The company also announced a direct presence in Sao Paulo, Bucharest, Dubai, and Seoul, plus plans for a data center in Indonesia. It appointed Yvonne Wassenaar to its board.
Guidance points to continued growth with narrower losses. For the fiscal second quarter ending July 31, 2024, Braze expects revenue of $140.5 million to $141.5 million. It guides to a non-GAAP operating loss of $6.5 million to $7.5 million, a non-GAAP net loss of $3.0 million to $4.0 million, and non-GAAP net loss per share of $0.03 to $0.04. Weighted average shares outstanding are expected to be 101.5 million. For the full fiscal year ending January 31, 2025, revenue guidance is $577.0 million to $581.0 million. Full-year non-GAAP operating loss is guided to $19.5 million to $23.5 million, non-GAAP net loss to $6.0 million to $10.0 million, and non-GAAP net loss per share to $0.06 to $0.10. Weighted average shares outstanding are expected to be 102.0 million. The full-year outlook includes the negative impact of the April service outage revenue reserve.
Risks remain familiar for a high-growth software company. Management cited an uneven macro backdrop. The company has a history of operating losses and a limited operating history at its current scale. Rapid revenue growth may not be indicative of future growth. Braze faces intense competition and relies on third-party cloud infrastructure. It also carries cybersecurity and data privacy risks, plus execution risk from global expansion. The April service outage also weighed on gross margin. Braze's ability to attract new customers and renew existing ones will determine whether the current growth and backlog translate into durable cash flow.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $135.5M | $131.0M | +3.4% | $101.8M | +33.1% |
| Gross profit | $90.9M | $88.0M | +3.3% | $69.1M | +31.6% |
| Gross margin | 67.1% | 67.2% | -0.1 pp | 67.9% | -0.8 pp |
| Research & development | $34.4M | $31.1M | +10.5% | $29.7M | +15.6% |
| Sales & marketing | $69.8M | $63.1M | +10.7% | $57.3M | +21.9% |
| General & administrative | $26.8M | $26.1M | +2.7% | $24.0M | +11.7% |
| Total operating expenses | $131.0M | $120.3M | +8.9% | $111.0M | +18.0% |
| Operating income (loss) | -$40.1M | -$32.3M | -24.1% | -$41.9M | +4.3% |
| Operating margin | -29.6% | -24.7% | -4.9 pp | -41.2% | +11.6 pp |
| Net income (loss) | -$35.7M | -$28.6M | -24.9% | -$38.8M | +8.0% |
| Net margin | -26.4% | -21.8% | -4.5 pp | -38.1% | +11.8 pp |
| Diluted EPS | -$0.35 | -$0.29 | -$0.06 | -$0.40 | +$0.05 |
| Customers | 2,102 | 2,044 | +2.8% | 1,866 | +12.6% |
| Net retention rate | 122.0% | — | — | 122.0% | ±0.0 pp |
Risks
Unstable market and economic conditions, including inflation, higher interest rates, banking-sector instability, and geopolitical conflicts, may reduce customer engagement technology spending and extend sales cycles. The filing states this perception has previously resulted in an extension of our sales cycle and may continue to do so.
Generative AI may significantly disrupt consumer engagement and marketing, and competitors may incorporate AI tools more quickly or successfully than Braze. Braze also faces new legal, ethical, and regulatory obligations as it develops AI and machine learning features.
Sales cycles with large enterprise customers are long and unpredictable, generally three to six months but sometimes over 12 months. Macro-driven budgetary constraints may delay sales or reduce win rates, delaying revenue while sales and marketing expenses are incurred.
Intense competition comes from legacy marketing clouds like Adobe and Salesforce and point solutions like Airship, Iterable, Klaviyo, CleverTap, and MoEngage. Competitors may lower prices, bundle products, or restrict platform access, and M&A activity, such as CleverTap acquiring Leanplum, could intensify pressure.
The platform depends on third-party providers and mobile operating systems, including Apple and Google services, for message delivery and notifications. Policy changes, service suspensions, or outages at these providers could cause customer dissatisfaction and lost customers.
MD&A states gross margin decreased 0.8 percentage points to 67.1% in the quarter ended April 30, 2024, partly due to a one-time charge to revenue related to an April service disruption. Risk factors note service level commitments and unscheduled downtime could trigger credits, terminations, or reduced renewals.
Dollar-based net retention rate for the trailing 12 months ended April 30, 2024 was 117% compared with 122% for the trailing 12 months ended April 30, 2023, and for customers with ARR of $500,000 or more it was 119% compared with 124%. Risk factors emphasize dependence on renewals and expansion.
Braze may need to reduce prices or change its pricing model to remain competitive, and large customers may demand substantial discounts. Some contracts limit price increases or include pricing guarantees, which may cause revenue to not keep pace with costs, especially inflation-driven labor costs.
Stringent and changing privacy, data security, and data protection laws impose compliance costs. Breaches or unauthorized access to customer data could harm reputation, reduce demand, and create significant liabilities, including under indemnity provisions that may be uncapped for certain claims.
International revenue was approximately 44% of revenue for the three months ended April 30, 2024 compared with 43% for the three months ended April 30, 2023. Expansion carries risks including local regulations, tax, currency, collections, and geopolitical conflicts.
Braze depends on senior management, particularly its CEO, and on highly skilled software engineers and sales executives. The hybrid remote work model, called The Way Braze Works, adds complexity and may impact hiring, training, culture, and retention.
MD&A reports Non-GAAP free cash flow decreased to $11.4 million in the three months ended April 30, 2024 from $21.7 million in the prior-year period, primarily due to purchases of property and equipment mainly for new offices including the New York City headquarters. Capital expenditures increased to $6.9 million from $0.04 million in the prior-year quarter.
SaaS KPIs
All quarters →Monthly Active Users
Total Customers
Current Remaining Performance Obligations
Remaining Performance Obligations
Customers with ARR of $500,000 or more
Non-GAAP Gross Margin
Non-GAAP Operating Margin
Non-GAAP Free Cash Flow
Summary, forecast, risks and KPIs are extracted from Braze, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.