Braze delivered a solid Q2 FY2025 performance, highlighted by 26% year-over-year revenue growth to $145.5 million and a sustained push toward profitability on a non-GAAP basis. The company achieved its first-ever non-GAAP operating income and non-GAAP net income profitability, underpinned by a non-GAAP gross margin of 70.9% and ongoing operating efficiency improvements. Management attributed margin gains to technology-stack optimization and personnel efficiencies, while continuing to reinvest in GTM and product initiatives. The quarter also featured significant top-line expansion driven by an enlarged customer base (2,163 customers, up 205 YoY; 222 large customers, up 28% YoY) and robust ARR growth, supported by durable multi-channel engagement capabilities and an expanding data platform ecosystem.
Strategically, Braze is accelerating its data-first approach through the Braze Data Platform, launched to unify data ingestion, activation, and distribution across environments (including cloud data warehouses) and to enable more sophisticated AI-enabled experiences. Management signaled ongoing channel expansion (including RCS and WhatsApp), a more flexible credit-based pricing model, and a broader product-led growth lens centered on free trials and sandbox experiences to shorten evaluation cycles. While the macro backdrop remains pressurized and gross churn persists, Braze’s trajectory toward revenue growth with improving profitability, expanding ARR, and growing enterprise scale supports a constructive long-term investment thesis. Near-term catalysts include Forge (product roadmap and AI updates) and ongoing enterprise expansions, with a careful eye on cost discipline and cash flow variability as the company scales.