Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Sprinklr's Second Quarter Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. Please limit your questions to one with one follow-up, so we'll have time to go through all the questions. today's being that advised be conference recorded. is Please

go hand over Eric to would remarks. Vice now first conference to like Please introductory for Mr. I your the speaker of Finance, Eric. ahead, President Scro, today,

Eric Scro

Thank quarter year you, XXXX second fiscal call. Doug. everyone, results Sprinklr's welcome, And to financial

Sprinklr's are and and Manish Sarin, us today Founder Joining Chief Ragy Thomas, CEO, Financial Officer.

Investor with them our ago, website, the filed Form the X-K time available our release made the we've short the section a earnings and along We supplementary issued SEC, of investor Relations on related with presentation.

on management measures. Please today's note non-GAAP certain refer financial that, call, will to

or While the the financial a presented for information information of substitute in company useful information this GAAP. accordance believes isolation these is not measures be as provide the to presentation financial for investors, intended with non-GAAP in considered

are investor to to supplementary You such presentation for press and measures our reconciliation of GAAP. directed release a

we'll and fiscal and XXXX, our during our our statements XXXX addition, assumptions, strategy, risks for looking uncertainties, today's financial call, full fiscal opportunity. that and and many of our product be Sprinklr third the the market of about guidance capabilities making forward involve In business quarter including the year about results

differ might results actual Our materially.

this statements and assumptions on as update forward-looking we to call of disclaim we Any make our that on them. today, based are beliefs and any obligation

associated forward-looking which please statements, risks these refer filings with on posted also are SEC, the on with our For the more our details to website.

it that, over Ragy. I'll to With now turn

Ragy Thomas

you Thank us today. you, joining for Thank Eric. hello, everyone. And

non-GAAP across continued operational all $XXX.X income XX% revenue for subscription quarter. QX QX million. was $XXX.X revenue in to another grew are the operating efficiency, $XX.X quarter grew With million that exceeded to total strong We metrics. million generated on our very guidance and that we focus key year-over-year XX% year-over-year pleased

improving our creating power Our our operational for than customers. value we and category on focusing harnessing of competitors Unified-CXM, the by key while to areas that new measurable continue innovating AI focus our a be call faster efficiencies

to We evolve the office. our we are core focused are broader continuing on across suite pleased and category a is as with how mainstreaming front Unified-CXM product

In quarter, office costs, continuing reduce the experiences. the to last while ask are help in create technologies, risk, world to to the front data all customer help and us their better my travels best consolidate bringing reduce around world brands together operating people

For experiences seamless unit large are silos. business to enterprise multitude and brands, are operating across that of channels, markets create impossible a traditionally in functions, complex and

AI architecture differentiated relational way complexity. compliant Unified-CXM databases current and is instance powered with a safe this access publicly cannot. and CRM that the that to It data single also simplifies gives mostly at privacy a man's and conversational its core unstructured in CDP available

The second topic customer's on AI. mind is every

we integration for our privacy. integration AI. means excited the and capabilities are announce the OpenAI, On to with even that plus Sprinklr the with plus that security data of enterprise AI+ of heels with AI generative governance, now announcing more provide Cloud's Vertex This can level Sprinklr brands platform AI+ are prebuilt AI+ now Google

or along new will company that as bring from AI own to able create their OpenAI, embrace be now will customers eventually. Vertex believe every integrate our importantly, with AI, ones We AI. More models proprietary appropriate them

as that in companies a AI will long enabled that assertion Our the is companies AI adoptive against AI approach and foundational win strategy run.

our office. entire you AI and AI AI front prospects Sprinklr's wings has our given AI is during for Day, their with proprietary As Investor across to the customers way fastest and we deploy shared generative

continues know, Third, as we the all be uncertain. to macroenvironment

and However, execution. strategy, with we diligently go-to-market are control what's managing our in improvements our productivity

time provide service more technology contact few to and airlines, to enable verticalized add center offerings. we faster we retail. services, selling key quarter, includes This financial specialist quicker CPG, hires to the And now past our depth continue deployment. value in team expertise and to solutions This a to made and

our the some ecosystem, with also recent successes, encouraged including we're launch partner unified of our Regarding of partners our program. new

several referral and and outsourcing brokers solution have consultants, including partners, new of process business independent partners, technological We integrated partners. types

all the know, you are partners. probably rapidly sourced especially in onboarding as Two and to remain contact Partners, committed were we space, by largest them CCaaS center in deals critical QX as we can. as training both our and of

past Furthermore, two showing center with great the momentum, us contact in opportunities our new solution providing brokers XX space. months model is technology almost in the

we continue products. their the that to our help easy access purchases organization. decision initiative of We've companies platform, eventually and and stakeholders making becoming self-service as of even product provide QX. our senior believe within office this sizes Sprinklr all practitioners, with of democratized paying will to increasingly our around recommending it eventually with added through We product investment experience of finally, access in expand products to up to teams enable self-serve And who in power customers inside large front products make dozens companies progress to new end self-service us

disruptor With center as our continued in respect a Sprinklr as Service, a contact to service the momentum we've space.

and transform a legacy Our cost vision it by center contact to center omnichannel is unifying revenue powered voice-focused with center to efficient, AI from the sales. help a marketing customers more

cost rate; across more and lower two, and consistent lower agent one, first, customers a ownership. channels; AI seamless CCaaS attrition unified Sprinklr's customer experience prospects of total three, provides with, its a

During won of of the several we and second meaningful majority theaters, close saw the quarter, with our new deals across three service primary CCaaS logos. once our were all deals again

second includes and Toyota brands the and Telekom, Nordisk, continue Deutsche existing we During Novo LVMH, to This class TransUnion. add customers new like quarter, expand with world customers.

saving replacing these largest product some companywide company ecosystem. time engagement of solutions. across Here across collaboration ELA marketing the and plus the two replaced Sprinklr dollars tighter this onboarding $XX competitors teams hundreds QX, by expanding its to partnership Sprinklr companies new the its enabling and our consolidation space, in more the drives with significant as examples. users signed platform, million agreement, between technology four one point of a all of In it are tech multiyear, suite

company as for Sprinklr Sprinklr's we served a listening This unlimited forward The partner customer them. our partnership Social new and has XXXX added AI seats look product, definition to continued from also Insight. and with Sprinklr

Deutsche with past first social German expanded quarter, largest telco in its to provider XXXX and when the Sprinklr further us manage partnered Europe's the with implemented partnership in Marketing center. into Sprinklr Service market. content Telekom contact marketing This and customer service it Sprinklr

own entire of this contact the AI European centers will Deutsche of solutions. legacy a powered company's move XX center customer Until As its part each been on contact to now, its countries expansion, have across operation service platform. latest Telekom Sprinklr's set using

more cloud will to workflows will while contact of them center solution its the ecosystem of have Europe company end will and Deutsche unified the service XX enable to next integrate streamline and XX,XXX to across The one and CCaaS agents its solution region. the enhance platform. transition consolidation based experiences. drive Sprinklr's year, efficiency, from Sprinklr's Telekom enable architecture countries across A By customer customers' flexible innovation operations and strategy than improving agent across working

win experience Service day global app Sprinklr's our over platform, point a and to past its traditional Sprinklr customers. solutions The help its would unified than replace and with more delivery delivery This website. of facilitates different with American base. agents household drive a and of essentials company XXX frictionless via profile same will six company Another with XXXX groceries is company North this quarter a

backend future customer other XXX power into will email, service integrated Service social chat, in US. and systems, be voice more their management company's by and across SMS Sprinklr proof help will than areas to company's across the to self-service order supporting voice, members tool, business features platform and the best-in-class will like and bot. chat new shoppers metropolitan their Sprinklr's including

the public when Civil told win Services Bureau Sprinklr was and in engages with you its exciting provide government to the technology services Government of the partner year, Qatar this and center the elected an Earlier transform public. I to as Development first-of-its-kind about by how

I Today, the experience development vision Emirate northern leadership's of Admah, of is another in sector is this Emirates. in its The have to the the and part Arab futuristics residents which United the the transform of time citizens space, public exciting tourists. Emirate's

citizen Sprinklr future entities. this, every residents local services government the XXX or tourists of social, citizens Digital transforming and been its than DDA, management across XX Department unified tourist citizen and offering experience emirate selected and across government seamlessly tasked voice channels the XXX,XXX more the and with digital platform, For than DDA as year. Admah, more has visit experience to who

of of to who in this possible. differentiate Before the our wrapping speed dedication continues to innovation up, all make take to a I'd Their engineering like incredible moment celebrate Sprinklr and marketplace. team

excited we even closing, about pleased are and results with what the quarter's In more is to come. pretty

we encouraged the see engagement and by the We momentum broader from the are ecosystem. customers and

front the costs, AI and of to leading value helping executing our vision innovating company, delivering believe our most committed partners, productivity, succeeding for set technology, for office shareholder loved unified with customers, remain apart lower increase unify execution and We our industry becoming growth consolidate in brand mitigate customers enterprise profitability. We and risk. us platform, the continued our that software efficient will teams, and

our their for investors, the And thank to our our believing to Thanks work you in all employees customers, partners vision. for and hard results. and

over hand call the now Manish. I'll to

Manish Sarin

you, afternoon, Ragy. Thank And everyone. good

we're from with solid Ragy, this results. As you pleased heard quarter's

XX% driven revenue the range. total above also year-over-year, above of of million, revenue and the subscription end guidance range. up which the our year-over-year high $XXX.X $XXX.X million, XX% our grew For was of second quarter, was end high This by guidance

of came revenue above $XX million, in guidance the $XX Services Professional our for at quarter million.

revenue was based Our net the second rate XXX%. in dollar expansion quarter subscription

we in a but discussed the As of monitor byproduct. growing we've the part NDE business, something is statistic as not past, our rather

as coming As on rates acquisition, to and more slightly we macroeconomic logo conditions decline upsells in NDE expect and renewal the focus customer new moderate quarters. we

with Service last of suite in number platform customers logos, is with This our of suite the product of many the Sprinklr service deals new terms the new as with few pleased customers. joined new In particularly quarters are the our that been in true over Sprinklr very have QX. we product

how add CCaaS our clip this going the we're confident healthy early opportunity, in new at to logos in in and momentum our Given a are targeting we forward. market ability

five end quarter, XX% we in As the increase or customers increase year-over-year. a more million and over of of revenue had contributing subscription second sequentially customers XXX preceding the months, of the an XX $X

at margins efficiencies XX% margins basis, to X%, were we the margins in but for we for to was Turning a of our as X% coming minus gross negative XX%. continue subscription gross total with estimate in drive non-GAAP of slightly for the second of and gross cloud in breakeven last quarter. margins half operations shared positive non-GAAP ahead quarter. came On our the first Non-GAAP the at services gross professional year

and to the As in delivery in continue we expertise CCaaS we invest that have our in past, discussed out capabilities area. build

have of and consistent of sales and last marketing We also Non-GAAP quarters. several at improvement quarter second to and shown to efficiencies and continue over generate XX% last the compared the in marketing in QX sales sales now marketing XX% year. efficiency in in expense revenues stands

Non-GAAP increase India, in R&D but quarter, steady in R&D the costs second from for summer total our as we annual universities onboard of quarter. sequentially engineers revenue every XX% of new leading held at cohort the

Turning share. with to basic per consecutive margins, million, broad-based non-GAAP non-GAAP performance, is profitability quarter resulting was discipline, for coupled in $X.XX fourth margin for the the net gross profitability. non-GAAP of and over operating quarter subscription result income of operating $XX.X This was the revenue XX% non-GAAP quarter, the expense income improved of

or net the the income of profitability, GAAP per positive topic basic $X.XX quarter, second share. we million for on Lastly totaling $XX.X consecutive posted

alluded In flow, large period cash expecting earnings on of $X.X annual public to million flow QX. the negative cash $X.X compared flow vendors a terms as one QX's in generation the call, second in payment generated free quarter year. million to to free of same the reason free last cash for had Recall, the during cloud a we of we

year. to the at payment during generated during than renegotiate we stands free this higher set the cash of the favorable more entirety $XX had our first With QX, flow able However, of this of year result were now a during last what quarter, million, terms. generation we in half

$XXX.X sheet outstanding. with balance securities million debt standing cash in no now healthy, remains and Our at marketable

than second the for anticipated. billings renewals $XXX.X early of increase had million, million QX we more billings benefited Calculated from XX% quarter were an several year-over-year. dollars of

that that is was customers deals. in around from making As the multiyear most of $XXX.X to some RPO, strength This RPO up well at The driven of some to the a recognized end year, is up million, period the our Service Sprinklr world compared not total revenue million, during Sprinklr. performance quarter, or XX% by was renewals has customer remaining as XX% the represents of been QX, of multiyear brands yet that to contracts largest CRPO commitment testament obligations, as the last and same recognized, which committed are closed the year-over-year. $XXX.X largest,

QX XXXX our FY full business year Moving and now to and non-GAAP guidance outlook.

today, you trends demand and engagement heard strong. for Sprinklr As term long remains

current However, trends that macroeconomic environment XXXX. we our continues are that few from the throughout continue assumption the last macro and to is recognize be the uncertain broader FY quarters to likely

we million the representing of the be XX% $XXX $XXX XX% midpoint. $XXX revenue expect XXXX, representing to be of this, at $XXX midpoint. Within million, in range FY year-over-year QX subscription For at million, revenues total million growth range to to year-over-year the expect in the to growth

outstanding. attributed in per $X.XX in $XX non-GAAP shares well QX, assuming to and in impact income delivery. investments the non-GAAP operating is whose million hiring the per net ongoing million non-GAAP expect We XXX in R&D, product of million $XX income basic The decrease to of to be to income as share be share, as $X.XX can in seasonal Sprinklr Service slight felt sequentially full our operating range

the in million, the revenue for than outlook representing This raise we the XXXX, the and year. XX% growth of revenue at $XXX $XXX raising year is the million which magnitude be For are tightening is expect year-over-year increase the guidance the an both now range and QX QX. FY subscription subscription million $X greater subscription at to and revenue the beat for our of total We midpoint, midpoint. to full of full

earnings prior investing implement easier time been the to in therefore, to value making have we for in we accelerating discussed customers. products calls, our As and,

These also In our been the have attached happening on are revenue around expect and faster we products. partner we delivering up suites had in our service what partners to addition, picked now cultivating larger ecosystem we product have proportion a anticipated. take our such delivering delivery services than a that transitions steam of previously

services for quarter. half between per professional expect evenly now revenue of XXXX million of we approximately approximately so $XX split QX, million and such, As FY the second QX $XX

expect non-GAAP for approximately continue driven Sprinklr and in we delivery also of to Service negative QX, QX business. in margin product by We million each scale $X.X gross be investments as professional to that services

perspective representing the this, Given to to be growth the million which by revenue the XXXX. the One the year-over-year revenue the year-over-year, XX% way expect down is for decline from XX% we being of in is subscription guide FY to $XXX million of professional at $XXX dragged this the range total compared year in approximately XX% growth services FY midpoint. to XXXX, internalize full full year

our to we Relations presentation can guidance, our Similar posted found bridge be on quarter, for the last which have investor revenue a slide Investor currently on website. included

per midpoint. equating million to XXXX, For in we're income million operating raising and net our be $X.XX of share of range the now FY assuming the tightening estimate greater X% $XX non-GAAP income the an for $XX This implies to basic million, year XXX non-GAAP than the $XX income $X.XX, a full of to is operating non-GAAP to operating weighted QX accompanying Note beat the approximately million margin increase and for raise at shares QX. midpoint outstanding. the average full at the

provided. XXXX FY needs share to million the In provision a to tax net deriving purposes, in $XX to million income year million estimate interest the Furthermore, income $X the in year QX. income $X.X here estimate with full tax for here earned $X full of modeling We total of QX. in be added for non-GAAP we operating for that million provision ranges a the per be

income full year, FY GAAP year performance the as past to the our first XXXX, few with calls. net earnings as the expect we every on comments the well half for positive given for consistent quarter be through the And of

impact we As I is alluded slowest in earlier, million billings, to early seasonally of quarter. QX had renewals will billings than several dollars' worth which already This expected. our QX

we million such, As range. billings $XXX the mid to be estimate QX in

billings our flow expect cash a million free will year-over-year, however, be to with year. XXXX, FY to expect $XXX on we year full prior full positive the commentary, around And for year the basis. grow solidly full For approximately XX% we equate to which consistent

their all what we're remain uncertain customers I in these employees successful grateful like focused operating for for our the would also passion Sprinklr. have and across discipline on building us to placed a times. and I'm dedication Lastly, thank our at the confidence for building during We track of record that execution business.

let's And open with that, questions. for up Operator? it

Operator

Instructions]. [Operator

J.P. the from with Our Bora of first line Morgan. question comes Pinjalim

Pinjalim Bora

for AI in Sprinklr core very Ragy, is a AI if a kind decisioning quarter. have strong at very like seems starting you to I becoming, material choose foundation? investing been you're market you becoming ask a to on wins. factor the customers, decisioning some for of CCaaS factor especially strong to have a is Congrats customers you close it want some others? CCaaS time, that versus point, quite in for But this because

Ragy Thomas

that see solution. a Sprinklr three are process There their do reasons when for pretty extensive pick and distinct CCaaS customers we

we a products The level the in unified solutions or competitors acquisitions other other, first at a way. it buy opposed them each in point that offer, give fact that unified with seamlessly as with to architecture that the have to not they works is that platform XX

power better a Sprinklr a just pretty do. experience smart It's a or everything Second customer. not agent to AI in create smart the the in a brought for built for together response much is AI is the we with experience routing, every and better of component is and

improve improve to the NPS able we're cost we're We're improve an bring of we're down, simple, the to very resolve to for time, time average proof we're scores. to able on able issue, to handling the to the able concept. and able technology Demonstrably, Third of is, show business. value

happier. a So win. triple it's Customers like are

more more saving and and happier because happier is making your Your agents money money. company are

Pinjalim Bora

in for is question Manish. palpable. One The strength obviously RPO

about contract kind expansion talked which some inflating that? want rate. the renewals is I ask year-over-year and meaningful to some growth durations, you Any as of to about You there's deals. think well way large in if the

Manish Sarin

fact is But remember ago, several I few because – do think a large call you'd them multiyear our years RPO the look, are out even had from a ones renew billings. that did basis. growth in the those we we customers on tier

this that billings. time to we happened hasn't are annual So sticking where

sure you that But think just renewed step in shown you make account. renewals, numbers was called select well as out about side for we're When into in if do sense that overall I take your were customers billings, activity billings think I as the RPO macro, that QX on to as billing back, early, RPO around only you strength seeing the there that the renewal as multiyear year. our that

Operator

the comes line of with next Our Lenschow Barclays. question from Raimo

Frank Surace

mentioned. Frank is Have customer strong the value the we strength. customer made dividends speeding up time to is in into here click trends or new that for start the for Raimo. on the customers here. major investments started the see This new to CCaaS pay I on another to just really quarter you want Congrats new really double driver on to addition

Ragy Thomas

Both. to investing for definitely accessible practitioners. more us. CCaaS we in and the is use easier been a approachable good more technology have driver making for But consistently and

call We've UX recall, of rolled design entire as we've it App. we've created the introduced Persona So platform. concept may new two, the Number you entire hyperspace. that out across paradigm an we

and enterprise hands mode, get and keyboard And come continue platform regardless stuff can experience you, a the do. and it. only a just then or you back to rolling So the that's been it three, buy self-service can on know systematically a all the product that powerful our in that practitioner go we've out offerings so things see other you of using the relevant

practitioner next for both and think I So a refreshing pretty I it's say UI hands. it's generation to would get on their the

Operator

next comes line the William Our Bhatia with question from of Arjun Blair.

Arjun Bhatia

from seems talk the you're on that new use. after points and understand good a to pick bit period But quarter we a gotten and the now Can around called a perspective? enabling like about it Ragy, business type and more to user gotten of obviously, shorter Maybe on that here, deals of of of do quite base strength, self-service of Help up out. guys. point implementation the the making just time? more you're customer want you Congrats us what ease has is different to last progress that see – you there, just allowing a maybe It I but to you better? ramifications allowing in the – seeing little is go a bit that benefits business customer, that has you

Ragy Thomas

growth the bringing clearly, Are our asking what supporting Sorry, benefits the incremental you we're let or Arjun. to question just customer? me understand what's

Arjun Bhatia

No.

quicker? run incrementally? able Sorry, a does your time you're that the more What supporting growth about what's to to manage is drive that differently growth easier business, perspective now and value how and growth implementation enable and from is

Ragy Thomas

into There technology. right? to going are know, helping is is, factors the voice obviously, One that us. you add which not space, CCaaS $XXX to huge two technology replace billion strategy broader the get market, is are a and which, market, as –

I and think to labor. scale it's going human replace

first I the human $XXX chunk bigger for also think, that billion, is a includes [indiscernible]. labor, So which of time,

us So that's market, I disrupt a as to we think puts that grow. in – place good obviously that

And a just field fixing making been results far. the out, go-to-market salespeople Two roll that understand the on very to us and fundamentals going is, with for it better. seeing completely pretty solution articulating so side, we take and we've more and but to in few been sell the we've to we're quarters the a focus easier have that's our consistent our pleased

Arjun Bhatia

from QX. on help And factors that understand that? a what's driving Manish, dollars sustainable? there? go-to-market should we there quarter that some think in significant pretty the in saw improvement are touch down Or Can view you can one-time saw marketing actually us sales and you the we spend? leverage went because I as this you

Manish Sarin

think QX. around There it's call Arju, right All isn't unusual the we've around it well. have the discussed past. I team at areas. four-quarter fashion trend, mentioned sort a anything different focus We you'd looked making in We're factors, sell. notice, partners been obviously a the if of core before has to direction. aligning the in the Ragy been engaging out in to the you sales easier in headed really actually as

think try spending at plan, we've cost we of in as that had this the probably an more to than been all I is about what money we've incremental judicious the been So look we – in doing past.

nothing think out, to assume seeing but sort savings of unusual sequentially I So you call these should sustain. you're to

Operator

from question Porter next of Morgan Stanley. with line Elizabeth Our comes the

Fiona Hynes

Fiona the for Elizabeth seeing This is dollar dynamics on Porter. I customers. that grew saw XX% million wanted We to subscription large customers on plus you're revenue ask year-over-year. with

what question the ahead the in look of my year? at second this terms so, into enterprise planning strategic around take we And half in How on projects? are willingness is, to enterprise as expansion going seeing [indiscernible] are to start budget of you conversations the of end season market

Ragy Thomas

into As this platform. we've larger point theme to our being XX, the articulated solutions and before, it's go customers, we're not – XX, the of seeing system consolidating then marketing a vendor and And hire XX integration of lakes, too very data them team or create especially customer consistent across team among just service then and trend, able run a and archaic. RFPs

set. to front more four shift to say, pronounced to a complete a having there's capability office companies and three so work let's wanting, And together to provide

And benefits so, I onto. options of the enjoying of we the being one to think are consolidate

and sometimes XX X, years, markets. over So in the from different go sometimes we solutions points different XX, replace anywhere and

from ourselves consolidation. as vendor benefiting or third positioning and that fourth the we're So

Fiona Hynes

One follow up that. to

the to so, you about these carrier have trends solutions, that CCaaS curious changes the how same they So ultimate that's the Sprinklr, talking think you're who transition to? end benefit buyer As traditional not you that I'm are selling for necessarily about, make changing the that start consolidation to? this conversations selling And in any of as you the solution? you're the the the with persona buyer seeing and from you're

Ragy Thomas

CIO, include the the our We versus expanded been CCaaS, the CMO's steadily buyer With that's have into expansion that to CMO. CDIO organization seeing organization. shift, traditional and

more the we C broadly So a suite, now a to everybody are CDO penetrating to CMO from the CIO.

Operator

comes the question Brett Knoblauch Cantor with from Fitzgerald. next of Our line

Brett Knoblauch

maybe on how or And more $XX the motion, bit old color product just solution? an "new the is so are much seeing guess, customers bigger generally, your is million CCaaS provide expansion with then, could more multi-year, with The additional to new contract" of that? a from contract, by I you one? annualized on relative maybe social it expansion you seats more the more your expand maybe driven value

Ragy Thomas

I confirm a In in upsell this case, was material it. can there

again, to buy larger the So to more one this the end guess, again, more. of is at term, as of had you buy wanted who, our customers would in,

So that's question the to answer number one.

Question two, both. number buying are more are products, more they they and seats buying

to business if and want to we $XX that price in of a deploy buy, units this us have So of believe you continue markets. across particular list $XX million case, we can across to million that company product payload a large

case, they've bought most products. this suites of four and our product already In all

in some ELA mode. So were

pointed is like unlimited So listening the we out for this Insight product time, suite.

are and we point, products not our unlimited license. restricted We in expect but we're some are not in seats, social. for where what more they is more in it's seeing It's expanded consumption at more about thousands talked expanding the So, most more these ELA, of social, seats. to to seats products. end And unlimited the use

Brett Knoblauch

have – see I ELA one forward? follow-up guys? Or I the question. do first if you you guys deployments of you guess done? you Or of trend how guys kind with I as guess frequently do with just this is this you do customers go continue ELA could do one Maybe an

Ragy Thomas

infrequent. It's That's something that we get to to eventually. want

been over XX years. has us a with customer for is this So who

bottoms you being and sales know, As up. our approaches currently traditionally

in get of our credibility for to offerings like go then up. and we'd So market the in one product with bottom – and suite build a

embraced And business an is So journey. overarching ability momentum get it's by executive multiyear the builds to success sees bottom unify better and typically up who a it as outcomes.

Operator

Our the with next KeyBanc. from question comes line Michael of Turits

Michael Turits

Wanted self-service? first, So, more questions a quarter. couple. some ask Solid to about

what your And more is same that been have then around sizes self-service versus deals that to taken have in relative done primarily have And or you've self-service, the sizes? customer expand? details or I that two typical So, the customer land question.

Ragy Thomas

identified has make to a the sure our has attacking of for downstream we that you Self-service, trying our market. ICP right, that our been lined the the to to target hands the give get us, profile make up, on on short defenses we're ideal long in to XX,XXX exposure And we've run, In customer focus more that been very profile our solidly us Sprinklr, in keyboard. run. power practitioner have sure very, fitting strategy target from focused no our that and ICP, on companies one's know – as

our has customer – these been up available those So outreach And only for up XX,XXX encourage we and and everyone can making you only our – go directing to advertising sign companies. fits a follow profile. strategy when marketing and but our products target

wants they so. we're happen two – of in which Usually, bit do small things one And it's to our sometimes and they use, to hoping times, buy version. in. come this seeing a talk seeing try we're they realize that it can okay, that, to team many the like team what enterprise And as try a for and easy what sales to is see they we're and it and and is they powerful and

– going encouraged by increasing we're shoots And now It's to but from several are quarter every as come take strategic. this most beginning it's see quarters, green how We we're very progressing. is, seeing this again, approach. us things, to

Michael Turits

types Manish. deployment customer if follow-ups it possible the Ragy just and tell is reducing on this to build? for actually acquisition reducing Is So is analogous average you actually your costs to of time it and two that,

Ragy Thomas

forth. because as got very thorough know, we longer risk and One is, It's CCaaS, take averse. very they service as process. transitions you are customer a into of kind are back it's too trends going CCaaS early. a deal very We've hard cycles teams get very and – few are

So time. thought-out, process kind longer it's more RFP/RFI a that much takes of deliberate,

at be, trying of So out momentum, deal an tend customers to these and to coming the we're self-service on side, those gain open within it close are least offset us kind to again, on have smaller But, of it. first average, able in the deal site. to quarter the some the self-service, in a

Operator

Berg question comes the Fargo. Michael Wells with line from of next Our

Michael Berg

just Congrats your philosophical view guidance. on wanted a the to more have of quarter. I on

had strong more the by QX the than you beat, and obviously being quarter raised raise. very and You than more said, a like

Is maybe giving you providing strong the what's and quarter? renewal you the the guidance? parse deals just help activity confidence? there what's and the outside the through large us that of anything So, in confidence saw Maybe

Ragy Thomas

the it's all of any by out. don't articulate. the you business. renewal strength by services shows have this more we And driven what day, view, within do the it's and it's it we time, our in the multi-year renewals, the aside, At it professional leave subscription complex linearity that did the the all I driven you item line think business, end in if When call up like quarter. than

the quarter. in have beat the guide. more seeing for quarters two is had we that's as been So captured reason the over And in that's which stronger next out we the think in quarters. we you're linearity what last us than in of confidence And I strength seeing look the modeled, of giving couple part the

Operator

next question with comes Our the from Tyler Radke Citi. of line

Tyler Radke

to QX. seeing far things I trend so wanted in just how hear you're

the good inconsistent execution in transaction, QX it in the quarter expected in you like and seems on large QX. potential do kind really terms What large Sounded of the figure just the second of half? kind eight but deal the in renewals of some versus

Ragy Thomas

the Look, quarter. is been. was. just it it macroenvironment I'll can has first it part about take maybe next Well, uncertain the and about the as as Manish of talk And

seeing rates this than scrutiny things and all not with that the come the where of not we're any interest quarter CFO going tie and last to saw right, going, markets But before. a is, like, seeing I go very quarter to it, better sure impact people But or being what focus on different and are execution trickling to good we just there's market. our be. So, behavior you're consistent think

Manish Sarin

to Tyler, question, so seeing to QX? what you in were the make are different QX that to Was your compared that Just anything understand. I in we month of or we've been sure trying ask? Was

Tyler Radke

been good of there's sorry. apologies multi-year noise background was, saw rephrase because question really it But, Yeah, the QX. And and some renewal know deal you in noise. current cycle. more slightly really, to of RPO large question for RPO the I make a the I activity I'll specific. the lot guess around

building terms just large that if your call things anything would So out there's to to and volatility noteworthy I'm just in call overall how out curious land models. be expecting those any QX, our to of as RPO deals, you're just we're in QX,

Manish Sarin

I that stage. But that Tyler. for nothing call at you there's this clarification, would out Thank

expect. any it seems As I what the we're quantum business that at of line in we're back-end company, with would we booking, software Like loaded. enterprise look of pretty sort

is make QX we wouldn't cause there would So expect. I seeing any concern. give sort nothing QX that us would are assumptions that the along It's of around lines any what and we of for land. broad But today how would

what say. So would I steady is

Operator

JMP from next Our Securities. Austin Cole line the of question with comes

Austin Cole

I'm long going some we've Sprinklr and the really more and Sprinklr of on the given is proprietary do pressure stakes boosted long kind has recent that is that generative term, see kind think this kind being about around wondering, degree and AI more to you efforts Over you you last accelerated over competitively over wave be what then this or put excitement AI overall? your back this look differentiated seen to recent of AI on if term? Sprinklr's table how the – of the do just you or AI more so of AI months has wings, six say thinking

Ragy Thomas

question, and movie the to settles blessed always deal many opportunity there's ourselves this your hype we've seen is then think being able a finding the all excitement hype Usually, What And and to power than capabilities about articulation used what the of AI be. can have awareness customers of appreciate much that makes the and the our our people And our that now our easier it differentiators do. AI have it. having of we're times. personas I starts. now buyer and look, talk have, real this answer of of lot To and and buyers

positive So around net-net, the impact excitement with on seeing we're AI. deals

to introduce farm unstructured and no to five the XXX data. conversational been a has not the purveyors new a of on over And languages people have without bet billions strategy we've years, of way product Our the in the for we because, feature that idea back understand AI AI there to to speak read new are and is last or using AI.

We a this are So to everything. We're going And we it's to and to go AI approach look, the it there to wave. how that's is is going we think sure AI that different stakes. say, make think change on is DNA into jumping And approaches one table powered. think.

former. The to We've opportunity new or product. say it. other for by dollars an that taken is one We a there's stand the some incremental

Operator

Instructions]. [Operator

Our next VanVliet of with the line Matt question comes from BTIG.

Matt VanVliet

there? look contact much it of high Sprinklr sort and being entryway and that center a side of knowledge by obviously at handle more contact I all How from the demand that can of opportunity center are an you of that like-for-like social the in existing out guess driven landing all and service. and broadening to as the replacement new of the media pure still opportunities really that you of versus seeing sort net is play,

Ragy Thomas

asked Matt, excellent glad it. you question. I'm

real be for proving last before. two replacement of center the RFPs quarters legacy unified than more more doing done to are ourselves complete and contact players in solutions we've so ever We

as last true, show out That that sort two And of of voice out our was RFP, So quarters ability I'd That the is choosing us. top to kind kind with of and a many was we're solutions doing an our players into play five of a of to to deals of not comparing the gate. disrupter kind value coming own ago. the maybe of say, quarter which space ago. independent in us quarter, beginning kind

solution pure with as things. unified social expand to to us and do can who other seeing are somebody they so, a opposed CCaaS as increasingly So,

Matt VanVliet

for Just quickly as you're on the more. look help emphasis at the to traditional greater end they partnerships a in out the there, your horizon you even, business that partners into products anything us. maybe leaning entire that out portfolio that Or you've even that of go I on sort go-to-market it's could this accelerate some transformations, of make there and place on SI call really broader guess, on they growing of had customers doing can really those

Ragy Thomas

We in have our more and the side. on lot been specifically, CCaaS partnerships, investing a generally,

early unifying as We're us, to though. different for we're established next Accenture, We're see who So, right? to contact kind Tech level. Mahindra a opportunity this – take companies of the like of partnership an in a players to like very a center I've taking space building the are approach different the it. got admit, disruptor. It's

of change sort of the that's there's a a in lot of lot So innovation and velocity happening.

on to us very to So of the enabling quarters it really everything documenting take few the any a much more get is results. wouldn't underway, going to and but partners. It's even I count

Operator

like There are no further to questions I'd hand management back for in queue. call the the to remarks. closing

Ragy Thomas

forward a And to customers partners most trust business. all our employees, we and an you I'd We management that Well, love. updating Doug. enterprise call our joining as for Again, thank all experience unified category software thank importantly, to thank hope exciting creating new continued you, again building soon customers like of we this company we look journey and, today. our our customer and us you for their continue

a and evening. Thank very good have much you. you Thank

Operator

teleconference. you this Ladies conclude your today's and for gentlemen, participation. Thank does

You may at your lines a time and disconnect this have day. wonderful

Sprinklr (CXM) 6 Sep 232024 Q2 Earnings call transcript