Braze Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brent Bracelin - Piper Jaffray Inc - Analyst : You beat Q2 by $8 million. You're raising the full year by $14 million. You're raising full year operating profit by $15 million. CRPO growth accelerated 300 basis points. Bill, what's changed here with the demand environment and appetite to lean into Braze now? And then Isabelle, what's behind your confidence that you can drive higher growth and higher operating leverage here for the rest of the year?

Question: Siti Panigrahi - Mizuho Securities USA LLC - Analyst : Great to join the call. So I want to ask about the OfferFit. It's -- you talked about strong start with OfferFit. Help us understand a little bit more what are you hearing from your customer base after this integration? And what kind of ACV uplift we see from your customer base with OfferFit? And I have a follow-up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:30PM, BRZE.OQ - Q2 2026 Braze Inc Earnings Call

Question: Siti Panigrahi - Mizuho Securities USA LLC - Analyst : That's a great color. And then I have a follow-up in terms of margin. It's great to see that you raised your margin for the year. I wanted to specifically ask about OfferFit. I know it has a lot of service. And how do you plan to scale OfferFit business and further drive even margin expansion there with OfferFit?

Question: Siti Panigrahi - Mizuho Securities USA LLC - Analyst : Congrats on a good quarter.

Question: Brett Huff - Stephens Inc. - Analyst : Congrats on a nice quarter and lots of great stats here given lots of different thesis going on in the market. To that end, I feel like I need to ask the AI question. Can you talk a little bit or just remind us again how the usage is trending for your AI products, maybe in a little more detail to sort of provide some meat on the bone on the defensibility of what we think is Braze's position? And then talk a little bit maybe also about the forward deployment of folks you have, I think, around OfferFit. And then I have a follow-up as well.

Question: Brett Huff - Stephens Inc. - Analyst : That's super helpful. And then second question is on sales execution. You all have been talking about this and I think showing results demonstrating that the sales execution has gotten better. I think we underestimated maybe just how much better -- how much of that contributed to it. I know you called it out or maybe Elizabeth did -- Isabelle did in the opening remarks, but any more to add there?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Perfect. At the moment, like the customer addition was really decent. And you talked about still challenging environments out there. But if you think about where are we in terms of customer understanding of your offering, but also customers kind of thinking about how they kind of are doing -- communicating with their clients in this new AI world, do you see a change in behavior or change in thinking there that kind of helps you kind of to have a better situation in the market -- position in the market?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Perfect. And Isabelle, thanks for the extra disclosure on or the extra comments on NRR. If you think about it, obviously, it's a backwards-looking kind of metrics. If you think about it, like about a year ago, we had like kind of much higher numbers. How quickly does that come back once the world is changing? You have obviously OfferFit to kind of as a cross-sell upsell. What are the puts and takes to think about the changing of that number going forward? Congrats from me as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:30PM, BRZE.OQ - Q2 2026 Braze Inc Earnings Call

Question: Taylor McGinnis - UBS AG - Analyst : Congrats on the quarter and the strong results. Apologies if there's any background noise. But just maybe on -- going back to the outperformance in the quarter, it was a lot stronger than what we've seen in past quarters. So could you just talk about maybe what area really exceeded your expectations in particular? And as we think about the assumptions implied in the guide going forward, how have you adjust those accordingly and anything to keep in mind there?

Question: Taylor McGinnis - UBS AG - Analyst : Awesome. Super helpful on all that color. Just the second question is, if I look at CRPO growth, so on an organic basis, you've maintained growth in the mid-20s. And now we saw this inflection in organic growth to the low 20s. So we're starting to see a little bit of convergence there. I guess how can we think about those metrics in tandem going forward? Anything to keep in mind from a duration and linearity perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:30PM, BRZE.OQ - Q2 2026 Braze Inc Earnings Call

Question: Matthew Vanvliet - Cantor Fitzgerald LP - Analyst : I guess first on the sales execution front, curious on how your average deal sizes came in relative to what was expected in the pipeline. Just are you seeing sales cycles drawn out or deals come in maybe at a smaller price point than you were anticipating, but the volume is sort of making up for it? And then secondarily, curious on where we're at on the average duration of sales reps maturation and how much maybe influence that did have on sales execution as well?

Question: Derrick Wood - Cowen and Company LLC - Analyst : Great. Congrats from me as well. Bill, with search and SEO getting disrupted by AI, are you seeing customers look to shift more marketing spend into first-party data and customer engagement solutions like yours? Just wondering how you see the market reacting to this AI disruption and how you guys are trying to capitalize.

Question: Yun Kim - Loop Capital Markets LLC - Analyst : Congrats from me as well. If you can provide some color around any trend that you're seeing around different messaging channels, which specific premium channels performed well in the quarter? And is there any messaging channel you expected to get a boost from when a customer adopts OfferFit? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:30PM, BRZE.OQ - Q2 2026 Braze Inc Earnings Call

Question: Kincaid LaCorte - Citizens - Analyst : This is Kincaid on for Pat. We've seen customers in this over $500,000 cohort going up quarter-over-quarter, but we've seen the dollar-based net retention rate dropping. Are we going to see that reaccelerate at any point?

Question: Tyler Radke - Citi - Analyst : So I guess just going back to one of the comments this quarter, Isabelle, I think you talked about some better reserve dynamics just on some of the payment terms. You also talked about improving retention rates across the board. So would just be curious, like what's the underlying demand driver here? Is it -- are you seeing kind of improvements on the messaging or MAU side? Just any commonality across kind of the better payments and better retention?

Question: Willow Miller - William Blair & Company - Analyst : I'm Willow Miller on for Arjun Bhatia. We appreciate the color on the down selectivity in the prepared remarks. But can you also comment on where you are in terms of ZIRP era customer renewals? Could we expect any more in the balance of the year?