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. We delivered our fourth straight quarter of organic and total revenue growth acceleration, generating $211 million of revenue, which is up 30% year-over-year and 3% from the prior quarter. We also continue to realize operating efficiencies, improving non-GAAP operating margin by over 300 basis points year-over-year.
We generated both strong operating cash flow and a record free cash flow amount of $27 million in the quarter. Trailing 12-month dollar-based net retention also continued to improve, rising another 100 basis points to 110%, while inflecting positively with our large customer cohort as well, rising 100 basis points to 111%. As Bill stated, we reported a strong first quarter, with revenue increasing 30% year-over-year to $211 million, driven by a combination of existing customer contract expansions, renewals, and new business. BrazeAI Decisioning Studio contributed $5.7 million of revenue in the quarter, implying an organic year-over-year growth rate of 26.7%, our fourth straight quarter of organic revenue growth acceleration.
As a result, we expect revenue from Decisioning Studio in Q2 to grow 15%-20% sequentially from Q1. Subscription revenue represents the primary component of our total top line, contributing 93% of our first quarter revenue, while the remaining 7% represents professional services revenue. Approximately 85% of the total professional services revenue is recurring revenue that is recognized ratably over the life of a contract, just like our subscription revenue. These recurring professional services include dedicated support from forward-deployed engineers, email deliverability services, and dedicated technical and strategic support and customer success entitlements.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q2 FY2027 | Raised (specific figures not stated) (Raised) |
| Revenue | FY2027 | Raised (specific figures not stated) (Raised) |
| Operating margin expansion | FY2027 | ~400 bps (reiterated, on track) (Reiterated) |
| Decisioning Studio revenue | Q2 FY2027 | Expected to grow 15%-20% sequentially from Q1 (Sequential growth) |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +30% to $211M | Existing customer expansions, renewals, and new business; Decisioning Studio contributed $5.7M, implying 26.7% organic growth |
| Non-GAAP operating margin | +300 bps improvement | Continued operating efficiencies as the business scaled |
| Free cash flow | Record $27M | Strong operating cash flow generation in the quarter |
| Trailing 12-month DBNR | 110%, +100 bps sequentially | Continued improvement from upsells, reduced downsell, and broad-based expansion across industries and geographies |
| Total customer count | +371 to 2,713 (+16%) | Robust bookings and competitive takeaways, particularly in the enterprise |
| $500K+ ARR customers | +33% to 349 | Strong enterprise demand and upsell motion across channels and data integrations |
| Total RPO | +30% to $1.1B | Contract renewals, upsells, new contracts, and a continued modest increase in dollar-weighted contract length |
| Current RPO | +28% (accelerating from 27%) to $670M | Renewals, upsells, new contracts, and longer contract length |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Organic revenue acceleration | Third straight quarter of acceleration in Q4 | Fourth straight quarter, reaching 26.7% | Improving |
| Dollar-based net retention | Inflected to 109% in Q4 | Improved another 100 bps to 110% (111% for large customers) | Improving |
| Decisioning Studio delivery capacity | Supply-constrained, delaying start dates over four months in some regions | Accelerated FDE hiring cut delays roughly in half; expanded into EMEA and APAC | Improving |
| BrazeAI adoption (Operator / Agent Console) | Reached GA ahead of schedule in Q4 | Publicly launched at City x City London with strong adoption and self-serve enhancements | Improving |
| Flexible credits model | Default for renewals and new business | Renamed Action Credits, the only way Braze sells, supporting mid-contract upsells | Improving |
| CFO transition | Isabelle Winkles as CFO | Winkles announced her departure after six years on this call | New |