Please refer to the investor relations section of our website at investors.braze.com for more information and a supplemental presentation related to today's earnings announcement. GAAP included in our earnings release under the investor relations section of our website. In Q4, we generated $205 million of revenue, up 28% year-over-year and 8% from the prior quarter. Organic revenue growth accelerated year-over-year for the third straight quarter, while we continued to drive operating efficiency in our business.
Early in fiscal 2027, we passed $800 million in annual recurring revenue, demonstrating continued strong demand for the high ROI delivered by our platform. For the full fiscal year of 2026, we delivered 24% year-over-year revenue growth and $28 million of non-GAAP operating income, with operating margins expanding nearly 400 basis points over the prior year. Our financial strength has also enabled Braze to initiate its first share repurchase program, a milestone that reflects our high conviction in our long-term growth opportunity. Additionally, $1 million-plus customers rose 28% year-over-year, up from 18% year-over-year growth in Q4 of last year.
Our go-to-market motion under the leadership of Chief Revenue Officer Ed McDonnell, who joined in like Q2, is operating at a high level, delivering a meaningful improvement in sales productivity. Pipeline generation was also strong in the fourth quarter, indicating robust market demand for our AI-driven solutions, particularly in the enterprise. This execution capability provides brands with confidence to deploy business-critical programs for entire global audiences, confidence that no point solution can match. We reported an outstanding fourth quarter with revenue increasing 28% year-over-year to $205.2 million, driven by a combination of existing customer contract expansions, renewals, and new business.
| Metric | Period | Current guidance |
|---|---|---|
| Operating income margin | FY2027 | ~8% (~400 bps expansion) (New) |
| Full year revenue | FY2027 | Initial guide slightly stronger than past years (specific figures not stated) (New) |
| Share count / EPS | FY2027 | Includes only the estimated impact of the $50M ASR (New) |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +28% to $205.2M | Existing customer expansions, renewals, and new business; Decisioning Studio contributed $5.7M, implying 24.3% organic growth |
| Non-GAAP gross margin | 67.2% vs 69.9% | Higher premium messaging volumes and hosting costs, partially offset by improved personnel cost efficiencies |
| Non-GAAP operating income | $15M (7% margin) vs $8M (5%) | Sales and marketing efficiency (34% of revenue vs 37%) and disciplined investment as go-to-market scaled |
| Non-GAAP net income | $11M ($0.10/sh) vs $12M ($0.12/sh) | Negatively impacted by a $5M OfferFit deferred-tax purchase accounting adjustment; excluding it, $16M and $0.15/sh |
| Total customer count | +313 to 2,609 (+14%) | Continued legacy replacement wins and reduced churn; some Q4 logos appear in Q1 FY2027 count |
| $500K+ ARR customers | +35% to 333 | Strong large-deal velocity and upsell momentum |
| $1M+ customers | +28% | Up from 18% YoY growth in Q4 of the prior year, reflecting enterprise strength |
| Total RPO | +30% to just over $1B | Strong Q4 bookings, healthy renewals, a large pool of available renewal dollars, and a small increase in contract duration |
| Current RPO | +27% to $642M | Strong bookings, renewals, and modest duration increase |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Trailing dollar-based net retention | Stabilizing in-quarter around 107% | Inflected positively to 109% on a trailing 12-month basis | Improving |
| Bookings / enterprise demand | Improving sales productivity | Bookings up over 50% YoY with record average sales price and enterprise strength | Improving |
| BrazeAI product suite | Decisioning Studio and roadmap unveiled at Forge | Agent Console and Operator reached general availability ahead of schedule with immediate credit consumption | Improving |
| Gross margin | Pressured by premium messaging | Continued premium messaging and hosting pressure, with new AI products expected to mix in at better margins over time | Stable |
| Capital allocation | No buyback in place | First $100M share repurchase authorization initiated | New |