Braze Earnings Show AI Push and Enterprise Demand Gain Ground

Braze is using its latest earnings report to make a broader point about where customer engagement software is heading. The issue in this quarter was not just growth. It was whether large brands are treating customer engagement as a core part of their artificial intelligence (AI) strategy rather than a marketing add-on.

Braze said in a Tuesday (March 24) release that its fourth-quarter results reflected stronger demand from enterprise customers, a faster pace of product launches and growing interest in tools tied to decisioning and automation. That suggests the company is trying to position itself less as a campaign platform and more as infrastructure for how brands manage customer interactions in an AI-heavy environment.

In the report, Braze pointed to an over 50% year-over-year increase in quarterly bookings, strength in the enterprise segment and availability for new AI products, including BrazeAI Agent Console and BrazeAI Operator.

The company also said remaining performance obligations reached $1 billion, with $642.1 million categorized as current, while total customers rose to 2,609 from 2,296 a year earlier.

Dollar-based net retention improved sequentially to 109%, though that was still down from 111% a year ago, suggesting existing-customer expansion remains an area that investors will watch closely. The company also framed its latest quarter as evidence that large organizations are consolidating around platforms that can unify data, orchestration and personalization.

“We finished the fiscal year with an exceptional Q4, accelerating year-over-year organic revenue growth for the third straight quarter while continuing to drive strong operating leverage across our global business,” CEO Bill Magnuson said in a statement. He added that the quarter reflected “a fundamental market shift” as large brands choose Braze “as a foundational partner to drive their AI transformation.”

The topline numbers were strong. Fourth-quarter revenue rose 27.9% to $205.2 million, while full-year revenue increased 24.4% to $738.2 million. Subscription revenue reached $193.5 million in the quarter.

Braze posted a GAAP operating loss of $28.2 million for the quarter. On a non-GAAP basis, operating income was $14.5 million. The company also announced a $100 million share repurchase authorization, including a planned $50 million accelerated buyback.