Braze Inc Q3 2026 Earnings Call Transcript

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

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Thank you. Bill, you talked earlier about the growing momentum, especially on the legacy side. Is there anything in the market specifically that you would attribute that to? So is it like AI adoption and you need a more modern platform, is it kind of the getting end of life like from a technical perspective and hence, more stuff is happening, or what's driving that momentum there?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. Perfect. Thank you. And then one for Isabelle the NRR, like we know it's lagging, so it came in the same level as we saw in Q2. Can you kind of speak to kind of -- like how do you think about -- and actually, I remember last quarter, you talked about like intra-quarter was getting better. Whatever the puts and takes there this quarter? Thanks.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Hey, good afternoon. For Bill and Isabelle. So you gave us the two points of contribution from the decisioning Studio. I'd like to get your thoughts broadly on how you think AI can impact the growth algorithm of your business.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : That makes sense. The follow-up is for Bill. So with respect to competition, I'm curious if you see your customers building bespoke agentic tech stacks. I'm not talking about wide coding, but something more sophisticated that sits next to or adjacent to Braze such that you think, well, really that functionality should be built in Braze over time. I'm curious, a, if you're seeing that as a dynamic in your customer base? And b, if you are, what can you do to move some of those projects on to Braze and a packaged software kind of discussion as opposed to having customers build it themselves?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Thank you for the detail.

Question: Derrick Wood - Cowen and Company LLC - Analyst : Great, thanks. I guess, first question for Bill. Could you drill a bit more on this new integration with ChatGPT and kind of pushing the first-party data into more personalization within ChatGPT apps? I guess, how much customer interest is there and driving more engagement there versus traditional channels? And what does this mean for your monetization and value delivery positioning?

Question: Derrick Wood - Cowen and Company LLC - Analyst : Awesome. Very helpful perspective. Maybe one Isabelle for you. Just the inflection in new customer generation very impressive that followed a strong Q2. Can you just drill into what's helping drive that velocity of new deals? Is it OfferFit given in the decisioning product given you new front doors into different accounts, or are there other factors in play? Anything to highlight here?

Question: Taylor McGinnis - UBS AG - Analyst : Okay, can you hear me now?

Question: Taylor McGinnis - UBS AG - Analyst : Okay. Perfect. Bill, the 4Q was so much better. So just trying to understand in terms of what's driving that. So is that just a function of some of the past headwinds starting to ease or 3Q being stronger at the end? Or are you actually seeing a further improvement of demand trends into the first half of 4Q? And then just curious any reads for you have on 2026 as you've been talking to your customers about their spending plans?

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Thank you. One question on AI Decision Studio. Bill, I'm just curious just in the kind of early reception that you've had from customers, how are they finding the product? What are the kind of use cases you're seeing early traction on? And I assume as we go into fiscal '27, this is going to become a bigger and bigger part of the story. What does the pipeline look like now that you've had some time to integrate it and get it in the hands of customers? And just how should we think about growth here and what it can unlock next year?

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Very helpful. Thank you, and congrats on the momentum here.

Question: Scott Berg - Needham & Company LLC - Analyst : Hi, morning. Great quarter. So many of them I just got to select one. Let's talk about your 500,000-plus customers. It's the second quarter in a row where your quarterly additions have really kind of jumped off the page, especially from a historical level. Are you seeing, I don't know, a change in how you're landing with some of these customers? Is this maybe driven more by better kind of expansion activity with them? Maybe help paint some color in terms of what's going on with those larger customers.

Question: Brett Huff - Stephens, Inc - Analyst : Can you hear me now okay?

Question: Brett Huff - Stephens, Inc - Analyst : Okay, thank you. Sorry about that. Good evening, Isabelle, Bill, and Chris. Thanks for taking the question. I want to drill in a little bit on the momentum that we've seen in the past couple of quarters, both in the metrics and kind of the tone. Bill, I can't remember it was a few quarters ago that you mentioned that folks in sort of the more progressive marketing organizations were a little bit tapping the brakes. They were a little bit more hesitant to buy more aggressively to think about growth and maybe a little bit of retrenchment. I'm wondering, I know it's a little bit of an anecdotal question, but do you get the sense that, that's changed? And I guess, maybe to put a finer point on it, have we started selling to folks that are willing to sort of buy side-by-side with the legacy platforms in anticipation of switching? I don't know if that's the right sort of flag to look at. Thanks for the question.

Question: Matthew Vanvliet - Cantor Fitzgerald LP - Analyst : Yeah. Thanks for taking the question. I guess looking at the AI decisioning studio, Bill, you mentioned that it's still sort of an enterprise sale, and we saw that from the OfferFit sort of average deal size. But as you look at the product road map ahead, are you thinking of using some of the other products you've built kind of in that area to move into the mid-market and sort of lower enterprise? Or will there be strategy for the decisioning engine to have kind of a lighter weight, lower cost version to attack that market over the next several quarters?

Question: Matthew Vanvliet - Cantor Fitzgerald LP - Analyst : Thank you.

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Hey, thanks for squeezing me in here. Sort of big picture question. Just given the strength you're seeing in the results and acceleration and growth here, do you feel like you are starting to get exposure or access to some of the more dedicated AI budgets as opposed to just being beholden to the Martech budgets, which have continued to be under pressure and how are you thinking about getting further exposure to

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Thank you. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 9:30PM, BRZE.OQ - Q3 2026 Braze Inc Earnings Call

Question: Patrick Walravens - Citizens JMP Securities LLC - Analyst : Yeah. Great. Thank you very much. Let me add my congratulations. So Bill, it seems like OfferFit is probably going to work out quite well. How are you feeling about additional M&A? Like when might you be ready? And what might you be interested in looking at?

Question: Patrick Walravens - Citizens JMP Securities LLC - Analyst : All right, great. Thank you, guys, and congratulations.