Braze Reports $162.1 Million Revenue with 19.6% Growth and Net Loss of $35.6 Million

Braze, Inc. reported a revenue of $162.1 million for the three months ended April 30, 2025, marking a 19.6% increase from $135.5 million in the same period last year. The growth was primarily driven by a $24.8 million rise in subscription revenue, which accounted for approximately 39.2% of the increase from existing customers and 60.8% from new customers. The company also saw a 35% increase in professional services revenue, totaling $7.2 million, attributed to enhanced deliverability services and onboarding support. Despite the revenue growth, Braze recorded a net loss of $35.6 million, slightly improved from a loss of $35.7 million in the prior year.

In terms of operational metrics, Braze's customer base expanded to 2,342 as of April 30, 2025, up from 2,102 a year earlier. The company reported approximately 7.2 billion monthly active users, consistent with the previous quarter. The international revenue also saw significant growth, increasing by $14.3 million as Braze continued to penetrate markets in Europe and Asia-Pacific. The company’s dollar-based net retention rate decreased to 109% from 117% year-over-year, reflecting customer turnover and renewals at lower subscription levels amid a challenging macroeconomic environment.

Braze's total operating expenses rose to $151.4 million, up from $131.0 million in the prior year, with general and administrative expenses experiencing a notable increase of 51.2% due to acquisition-related costs and investments in compliance functions. The company’s gross profit increased by 22.3% to $111.2 million, resulting in a gross margin of 68.6%, up from 67.1% a year earlier. The increase in gross margin was attributed to efficiency gains in the tech stack and a one-time charge impacting the previous year's margin.

Looking ahead, Braze aims to continue expanding its customer base and enhancing its product offerings, particularly in international markets. The company has identified significant opportunities for growth in sectors undergoing digital transformation. However, it also acknowledged the potential impact of macroeconomic conditions on customer spending and contract renewals. As of April 30, 2025, Braze held $539.8 million in cash, cash equivalents, and marketable securities, which it believes will be sufficient to meet its operational needs for at least the next 12 months.