Braze Raises Q2 and Full-Year Revenue Guidance Following 16% Customer Growth
BRZE•Braze raised Q2 and full-year revenue guidance after reporting strong adoption of BrazeAI Operator and a 16% year-over-year increase in net customer additions, including more customers spending $500,000+. A hiring ramp to resolve a Decisioning Studio bottleneck delayed start dates and may strain efficiency as AI-driven competition intensifies.
1. Revenue Guidance Raise
Braze increased its revenue guidance for the second quarter and full fiscal year after a strong start to fiscal 2027, reflecting confidence in sustained demand for its customer engagement platform.
2. AI Adoption and Customer Growth
Early uptake of BrazeAI Operator and BrazeAI Console contributed to a 16% year-over-year rise in net customer additions, with a notable increase in clients committing more than $500,000 annually.
3. Decisioning Studio Bottleneck
A shortage of full-time staff in the Decisioning Studio led to delayed project start dates, prompting the company to ramp up hiring in regions such as EMEA and APAC to support demand.
4. Competitive Landscape and Risks
Braze faces growing competition in the AI-driven engagement market, and operational efficiency could be challenged if staffing strains persist and rivals accelerate their own AI tool rollouts.
