Sprinklr (CXM) 4 Sep 242025 Q2 Earnings call transcript

Greetings and welcome to the Sprinklr Second Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the call over to Eric Scro, Vice President of Finance. Thank you, Eric.

You may begin.

welcome, Results Sprinklr Call. and Year Quarter Paul, Financial XXXX you, everybody, Second to Fiscal Thank

refer Chief our Joining Founder along ago, Pham, financial Sarin, on and today made investor filed presentation. Co-CEO; Officer. We supplementary us are X-K Trac Co-CEO; Ragy the related them we've and Investor with short release today's and the a earnings management Thomas, Form Sprinklr's Financial time issued the on the non-GAAP Relations note with that to section SEC, available of measures. call, will our certain website, Please Manish

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

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

be today's including our XXXX. fiscal Sprinklr business full financial at The about during of the changes call, addition, year strategies our to benefits quarter assumptions, impact opportunity. In and and and some many our we'll the leadership, about market our the corporate of forward-looking third and guidance for involve the risks of platform statements results and making of that our uncertainties,

as the on July filings report website, associated XXXX. quarterly risks update such today, results quarter might to the this assumptions differ including the on our forward-looking and statements. Our obligation for on posted actual statements we any please them. XX, Form materially forward-looking of we on forward-looking to details these and our XX-Q beliefs ended on make from disclaim that Any call with based more are statements, refer SEC, also with our Sprinklr's

to turn With it Ragy. let that, now me over

non-GAAP QX Included the revenue X% in Thank and $XXX.X in generated income, and is results an a hello, margin X% to million, year-over-year everyone. for of which quarter. credit subscription operating loss non-GAAP to $XX.X in year-over-year $XXX.X million million. grew We operating resulted charge total revenue million. you, XX% $XX.X grew these Eric,

was by topic in more quarter discuss the for flow not cash charge. Manish will this free impacted his detail remarks. during Our this

previous the will take Trac on to reaccelerate progress making through As we and several our transformation calls, we're plan our growth. are acknowledged the discuss strength capitalize we on will to quarters. working

Before Trac, I platform over and markets. experience hand To reflect support and begin a in we gold AI-powered to Sprinklr's our of achieved. in growth on would operate through I recent underpin list it has platform. to that blocks growing like management several have profitability. customers some building We believe star and unified will with, turnaround attractive customer we successes an

our leadership for core space, have CCaaS suites. benefits in an top where emerging And quadrant, customers. within already generating We product our tangible disruptor our differentiated the is also product we're position

customers several During and second new all Bimbo quarter, Grupo the as T-Mobile, added existing our with and Planet across suites. expanded ones, product Ford, such we UBS, Fitness

vendor incumbent Some multiple an industry-leading specific global for place together is the and platform the asset replaced better across this in of world. to At in and tools improve publishing, AI-powered point who solutions, is largest social include company, customers' XX managers all social and marketing examples listening, their which teams work allow one Sprinklr unifying experiences. our engagement, years. these will customer channels, service. including

an some aggressive on using up to channels example understand core to suite, our market market multiple extensive estimated capabilities. our increase AI XXX,XXX suite also support customers to Another suite call American a calls in resulted their printless use insight Notably, our with to as AI North results our EV countries. by year handled in capabilities that business This a global able country. is be needed large opportunities to remarkable launch social may be We're fewer deflection retailer different company in their agents. that product is service to deploy popular to our and uses XX%. each company who a was seeing This

a use of bank XX%. by customers of saw some that is increased agent largest their implemented the productivity to enterprise outbound resonating value CCaaS over a global self-service customers. large example of our proposition recent just few AI has with Sprinklr's These well. their virtual saw This Another as XX% is and improved customer examples are world's how

also Forrester the customer solution by Sprinklr Sprinklr named a major by XXXX the recognized these analysts. in is for Wave, were Service. quote, We to our Contact player IDC both batton. as solutions In a most Forrester industry was Marketscape In a addition Center customer and in interaction being I QX, complete also as validations, leader cited innovation digital feature named

As you team. building been leadership executive our know, we've out

Over fields the their are driving in last attracted hired who and and several our passionate quarters, leaders experts are business forward. we've deeply about

Trac. leaders One these of our co-CEO is

to and Trac invite on doing here to the you. improvements making like to we're work the over we're Sprinklr. Trac, at his thoughts now share And

Ragy. Thanks,

macroeconomic have market-leading due impacted We have the significant execution power budgets specifically. We challenges our have few made a platform. we and technology the vision acknowledge experiencing over to the that customer in past challenges quarters. and we bookings This spending, near-term the factors exacerbated been lower conviction facing, strong building of including we've are by progress for is net a recognized

to demonstrating platform our to customer enough pressure budgets due us that suites, we unified with suites seen renewals by to Related CCaaS. First, have compounded core operate not in a process X tightening value. on effective our our in markets and core renewal enables was distinct

has CCaaS in into scale market. competitive push product gain our a we both as required and in implementation investments make us to Second,

have offering, yet achieved brand but We recognition. a not have strong

new operational This innovations has addressing. push enter over and growth, we markets years. as Third, are the product product new which we quickly launched past we and complexity, created X for very

the with in is now a on CCaaS. These We're are are suites advantage to our taking leadership our actions we these between core address ensure position our pressing our issues. and rebalancing We foundation. decisive solid focus on are taking to urgency action business building in while great

Once and and our focus scale. We love improve sharpening successfully, to products. sold are our our execution implemented strategic customers

therefore, focusing those value we reaccelerate refining the value capabilities our we while are, more our We're our designed full most and and for successful executive the and growth We sell expectations on aligning efforts go-to-market Related processes customers. the activities platform of segments our with meaningfully platform, can priorities for expand of when margins. of products and we execution the broader operating to create most to and the where its breadth revenue clients. are closely

cycle, of sales them increase to the reduce throughout swift are renewals support we will rates team offerings. team unlock improve helping Some engagement with our of of full value new these initiatives the our include: one, renewal and the customers our This reorienting with life churn.

the We they are health renewal also impact. measuring factors have greatest directing efforts and where likelihood

closer changing model to be operate. where doing geographic Second, X our customers we support We're are in to this the ways.

First, client geographies; by aligning solution to and territory our secondly, success implementation moving model. our consultants and teams closer with our better

deal are we needs to customer Additionally, right specialists deploying match opportunities. with to expertise the

mentioned both C-suite to sales field buyers. expertise and we for users and As are our technology selling focus on earlier, elevating

market strategic second with and we're a will friction. and our believe we services There these our success the simplifying believe have In the driving and global of of fewer and more pricing we large to retail customers. create scale are across help bundles fit this segments, several remove early within purchase enable but the aligned packaging We with we targeted and deals us product will tech, sales at strong improvements aimed offerings. are serve quarter, closed targeted solution customer to our social, accounts telecom product in Third, initiatives. signs and marketing organization and some better insights and expectations building across these industries. We with suites these

Another we invest our in ability key priority to is ensuring areas to foundational sufficiently scale.

for all productivity areas of to increase third-party company, including examining We the spending, efficiencies. and are opportunities

While we and the actions to growth required fund are necessary effort, believe stages early investments these reaccelerate margins. to increased of are that we this in

acting priorities. confronting focus urgency, aggressive closing, the resources In areas to with we a top align our strategically our and reassessing and clear our we with are agenda. reallocating facing are with We're challenges

are commitment deliver expansion. executing We solid believe operational cost for employees. our enable By our sustainable and foundation excellence a efforts Our building is position that for will evaluating success. are driving believe company we we we to will to margin across drive unwavering, to and customers, agenda, us shareholders our deliver structure the these to partners, long-term diligently better us value

over Manish it financials. discuss to to I'll that, the turn With

Trac, and you, good Thank afternoon, everyone.

year-over-year. the $XXX.X of year-over-year. was quarter, X% second million, was million by grew This total For which up revenue revenue subscription $XXX.X XX% driven

continued has that budgetary environment $XX.X Services with The seen and the for cycles over quarter in sales demand revenue year for scrutiny. at a now million. second we have longer heightened came broader

continue our to FY In experience product the expect level core suites churn in addition, and we to full this 'XX. for continue year churn elevated of

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

As revenue indicator. a subscription trailing NDE XX-month makes lagging a we calculate it basis which on a reminder,

expect as works While through lower down over few to next waterfall through calculation. rolls number its revenue forecast we the the the elevated business way NDE, new this come not we and of do quarters the quantum and churn

is in We customers continued XX increase As of indicator an a of growing the revenue we the the winning more customers. of months, second end X-figure contributing is in our the million which $X year-over-year. had deliver XXX preceding platform customers over of quarter, and for our the or subscription value success XX% we believe

margin on total for was a the services gross XX% a resulting non-GAAP gross was and gross margin Regarding subscription our quarter, negative X%, of professional gross XX%. margin in second non-GAAP margins basis,

non-GAAP margin, non-GAAP of Non-GAAP for profitability operating share. this $XX.X an loss drove in net million to or Included Turning income million diluted per credit X% charge. income is $X.XX income operating the quarter. $XX.X was a which

quarter. factors. by operating higher the in charge booked charge, expense to income G&A a operating would for and the line this million have Excluding XX% and range provided non-GAAP driven of was margin guidance resulted or non-GAAP in is QX This X the a largely $XX.X than

Business we we markets with Furthermore, and teams elongated markets and of technical collection international result in recent expertise these our products we cycles. new implementation new early in offerings. launched in new deep As in experienced established these partnerships markets some saw in implementation we traction not years, product entered challenges have markets. did in practices where

impact will from against collection As which both reserves accounts. accounts, revenue such, select we taken these cash and recognition have specific

We expand scale shore we our no had implementation This have to for our offerings. flow cash free the on both charge up performance effect product continue as since invested in and to quarter.

However, our calculation situations in as removed CRPO of $X approximately million resulted July customer XX. from being these

contributed generation represents cash free period no flow second to our margin to of balance we million now an year. at respect with compared million debt This million cash X% last cash free flow the stands in quarter, which the $XXX.X $XX.X generated equivalents $X.X With cash to same flow, during cash flow in healthy which sheet, free and outstanding.

program, second $XXX.X the Class the stock total our company's million During cost to pursuant of buyback we shares XX.X for purchased stock of a A quarter, common million.

the the for by quarter these million of With to we that buyback and purchases, X% Board. during company's an million $XXX.X were buyback authorized completed unissued a billings full repurchased reserve increase returned total have of share Calculated year-over-year. were the authorized million, the was second $XXX but the shares program. XX.X

CRP sequential The churn was as committed CRP XX, specific yet remaining the XX% total last environment up recognized was year-over-year. approximately same $XXX.X impact X% decline customer driven $X been from and RPO period or million by year. the from million, which revenue demand to of July in not $XXX.X contracts elevated has described the situations performance that was customer million, compared and earlier. and represents RPO As obligations soft up

and year business to QX now FY and full non-GAAP Moving outlook. the guidance 'XX

is macro to FY will see We continue of assumption we current and that are continue the our through elevated that softness entirety churn experiencing the 'XX.

midpoint. total revenue year-over-year services implies professional in Within representing $XXX in million $XXX.X The to revenue. the to million, $XXX.X growth this, revenue at of be range guide year-over-year million, representing range expect in the the $XXX million we at QX growth we X% be QX, subscription X% $XX.X the to approximately of midpoint. to For million expect

to As invest earnings our in CCaaS available we market. prior in have opportunities continuing signaled calls, we that delivery on capabilities are given to growth us the

gross As in XX%. expect negative such, decline we services to approximately to QX margins

CCaaS, which begin services to utilization, and gain forward. scale to on we As in billing gross focus will going rates should margins improve we continue

QX of adjusted assuming non-GAAP range by decline non-GAAP We income resulting $XX the The in from in expect per to net operating is non-GAAP to sequential million, income the level factors. weighted million operating income be diluted XXX of diluted average driven share $XX approximately of million million outstanding. shares X in $X.XX, $XX.X

as and higher costs delivery, we second, First, hosting the launch mentioned an professional higher as environment; cost costs from from data related CCaaS services new subscription earlier. to and in increase

million year we full million, FY growth revenue expect subscription the 'XX, to at X% For the year-over-year of $XXX.X representing midpoint. $XXX.X

increasing total FY 'XX is revenue representing and $XX.X earlier, the revised full to QX the 'XX. impact subscription guidance million, the 'XX to to approximately in million FY $XXX midpoint. million million be that expect described year-over-year $XXX equates in the above in revenue to at services $XX to our factored $X.X year both guide we is approximately We $X FY million. numbers are for million the CRPO X% range and Note from Implicit an that to of impact growth

the well are previously $XX.X in range force to executed million. net issued million costs of non-GAAP non-GAAP severance $X.XX margin for million we the half XX% non-GAAP 'XX, XXX first the categories FY is nonrecurring For income income related per line of $XXX include: $XXX as midpoint. million be equating May. charges reducing the million, to incurred taken assuming we $XX.X of as in first, in outstanding. this weighted our guidance the the credit diluted in year million and with in and in QX $X average expense to diluted of loss 'XX, for the reduction to When These items This shares $XX to operating share $X.XX, adjusted a of implies operating million full FY at

$X spend operational the from approximately consulting revenue CRPO million as FY spent 'XX. million initiatives to We $X be impact discussed during and for 'XX million $X.X Second, resources and strategic previously. to third, on FY impact approximately

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

to full be comments tracking still few income are the with net calls. 'XX, We FY GAAP our for year the on past consistent earnings positive

growth consistent be billings last quarter quarter, down XX% With and a we billings reacceleration the expect respect we billings to full year. the with 'XX, our billings, subscription compared the quarter traditionally in trend last the estimate billings full QX to fourth X% weakest that such line is approximately same in with FY year, for year revenue to from year. will be And up rate the

we for $XX free the in to approximately year. estimate respect full generate cash flow million to With flow, free cash now

for for Lastly, their building I thank our would to employees passion are like and Sprinklr. dedication what at all we

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

Arjun from question Instructions] Bhatia Blair. first with Our is [Operator William

O'Miller Will for I'm on Arjun.

to quarter? Is any it see I to the more as extent pricing get last same off, like Just continuing. color there's if to trying pressure . to hoping was changes start there. it is So sounds there.

I'll Ragy. take pressures. continuing to see is budgetary We're This question. that

I'd or In last of not than any -- it's worse terms is say better better. it getting quarter,

so say what before. and past we seen in of kind And with last I'd consistent quarter have the quarter

more. changes, in unpack Okay. to prepared called And that a hoping little out your remarks, pricing packaging and for bit you then you

Yes.

years. functionality platform over a built it's capabilities. that unified XX, the of quite out have in we the And So was last terms and XX organically bit evolved its

of and opportunities for that there XX and how dramatically and to have use we evolving given are with compete. these our efficient on by more customers We stands And business of to at it relooking solutions has packaging it more more pricing kind it the the be pricing accretive the in are packaging organically unified we this and that that based each also one been been have years, replacing is now products consolidating realize our aligning customers the where and So subindustry point platform. changed. now, buy

well to market we We've the We're evaluate add the So working. with we comprehensively. And team pricing to might company talk a to just and pricing at are AI-first that a our pricing. it I that as platform, look consulting opportunity we AI, have are because as internally an hope an building well. throwing relook customers there's how an and we examine to have hired our pricing working are as in and been opportunity we but to

Our Raimo next question from is Lenschow.

This Raimo. is on Frank for

marketing conversations. data seen of a out another out So see how play trend customer specifically. crowding AI quarter, and out spend effect of I want bit just you quarter you've last with in to in called this check an and

Yes.

studies capabilities So of ton think more AI. XX% remarks, finding to pronounced their of -- my that's our one the a human CCaaS our AI, out pretty I a with more prepared to we on pretty suite I marketing couple to called where terms now in our opposed IVR And in suite our have got AI, our more relying using that calls has powered service outcomes able and the are time but we're are are and of suite as by bots seeing case interesting as way the I in it's interesting, than service success AI-powered on business our where product of are agent. XX% but diffract customers

were containment. up AI-powered the another large one of company to able after boost with containment XX%. to have We gate out bot where we we that replaced a telecom had that XX% their And current implementation,

agents inbound -- the to some the outbound productive. we're addition So and and seeing in making this more is

interesting some there. So we're seeing numbers pretty

is Our JPMorgan. Bora Pinjalim next with from question

-- improvements? your increases. obviously But you terms some companies have Just you growth going some moving how pretty seems AI of agent of to there kind are before. of specifically? And in as . about you're you these these from And and what potentially, some transition growth of element are seeing is they feel talked do when in pricing answering pressure see comes about agent as see it that packaging? productivity hearing productivity customers then it that that The good you threat some we like Sprinklr forward. a on consumption-based Could

seeing as few ways. companies and really connect. in couple cut contact To are With bifurcate turnover do context human there in to though, so. One, who are companies is high. center good sort we're to looking cost number using down pretty Well, fair, a to be the AI of a the one, but the questions labor a and way of

efficient, you if well more worth newfound covering are improvement. as we year's finding inbound productivity are into have Well, translating activity, get TV into XX% So contact attrition. as centers outbound you're as outbound sales well of customer just of the most that go both inbound X we service companies Two, who as sales.

time as they repurpose cross-selling spot service. able they're more so into inbound on And and those one, outbound down cut dollars and from to the

the come the trends we count are see. down. AI, is seat those we With going X So know to agent that

as evaluating evaluating exercise of priced our and this models interaction-based a more differently comprehensive modules, different are sort AI of we've as part So we as well.

second ramp point? Got QX at think then XX% gives heard confidence maybe that seems the it One going down year is about to a it. talk sequential in year-over-year I like half you and of in I supposed correctly, to for billing Manish. pipeline/visibility the the If follow-up wondering in what this big that be

QX FY if you note a so of at sequential that last is, is and decline. year 'XX, always QX one will there you So even big look of

is The quarter. were us XX% always pronounced the QX, more pronounced so this given slowest of book of our So then range. also one it's same and little now of It QX, business our our is it the impact is the accounts before quarter. And given is And reflecting just smallest, in renewal QX the I guide. because quantum think last we year that was always take, streams. which back we for strongest just a year the that was you think are There always booking business give business. has a then in or new remember, was the what for, I XX%. in

think we what going have provided. that factored I've what's it's what that's by I and seen the So we visibility have, into guide

Elizabeth from Stanley. with next question Morgan Our is Porter

the back Sprinklr's customers are Great. I go on to It's capabilities. hear AI case studies to interesting really seeing AI some of that on leverage wanted improvements when the debate. they

the debate decide what here news the is we customers I'd where so to your is build and do view buy seen build AI think what I the that confidence happens deal buy? versus the just we've more side some your also of other trying themselves customers in more often to love debate -- drives when macro the that to kind get on slowdown versus themselves versus of headlines

be We it, very insatiable great we call that I a sure is think building. Elizabeth, a talk And which as the are asking layer okay? just top it AI are And foundation models is when is that's infrastructure based NVIDIA going to for like on stack. it for being a that models AI, is you you purpose it. of I'm of frame successful you're -- more hardware, company need question, I companies and We Google expensive. we others and want open way and of thank that to because be that. see currently about best value there's the are We lot general build going of in Meta what of to which and the to building clear, models the see very, see what AI, of AI, the on available. which

third When contact your your that layer built has We center, AI, models, enhance companies, on layer focused have traditionally what that's customer Sprinklr the on source these models. data that the at open that's corpuses look of base, they purpose spec and feedback. but knowledge as which large large have call we sits of product available internal general is the that's is our of top them. application you we on in own

some old you information, if legacy documents website. product that's today the in on at resides the that marketing All look knowledge on and Internet that's dam, and and base, of

over all place. it's So the

where sanctify it for So the answering document customer experience. companies going going change if are these can forward, the somewhere AI because bring can document need together in the in to customer to catastrophic they be inquiries, change wrong is

whole your all the version control data and So of data, of Sprinter a closed-loop and internal there's which provides. bring together, feedback Workflows need have to training.

Second is the that top do approval ability to did compliance depending on made that provide is And guardrailing. of to on can effects. the and Why say change? you I do. What the right, governance that move have What on the And is Who workflow. this? slider and was third, not how undesirable to data? to left AI allowed it allowed

confident application top grade very So makes specialize of purpose enterprise are is models. to in to is very on the that and which and what things very it's we level general enterprise these built us unique bring we be that

going in This every across company Japan. has back also going marketing because to Yes. it's to boom we going it's And models that's stress be I'd every be And this think AI car everything. be AI. be function, teams That's Elizabeth huge dealership from global tempting that to through and number applied all has the happen just to a do one. reality, AI these In to that to -- applied this AI of customer-facing has that AI to channel. economic be to to every than applied the there's to the know AI

years we're to execution unique position in centralized unification. to focus in social very we solved of our has very very driven a a of unifying for which unique markets, independent the in have not fabric of ontologies starting been these short us. that have spent and where downplaying channels, well the have place all differentiator business in we So XX we units term. in this a and We're be which And need

get so very in just you comprehensive as much wanted follow-up that to for answer. well. a quick I Thank Great.

lot heading sales changes Could on the expertise the where and where sales within force, capacity you're around speak made the you fields. of next You've elevating you seeing level year? that to productivity just a expect to and some of are be you of ramped just into internally

This strength, is They're think right and to bench change. in it Elizabeth, leaders I time got good changes. making things takes out we're place. the those Trac. for their We've building

I certain the good business that that we're degree think encouraging headwinds is some then areas. we're these we're macro stages very stabilization But very in which organizational ahead of for it there through. we're make despite stabilizing are the flow in take seeing, when still facing there's that it a you the early of that given and really moving that signs to changes, does we're time

next Our Markets. Jackson is Capital Ader with KeyBanc from question

may their budget are there be specific customers or either getting dollars renewal. just when electing other not? Where one, they expand Sprinklr IT churn are upon are people First where that are much to -- competitor that is with reduce Is headed? the Sprinklr Or spend or not maybe as that going? a there is of parts

-- the churns. not common control. the as seeing on which are a mentioned are down But when sales sort customers last we're we're as things seeing and we we we So really cuts of -- theme, budget logo call, like more again, can't

one probably to -- -- where to at true But go all. we're that seeing I they we they that and truing not seeing change downsells look way are But So in in not back. any seeing how We're things or they go pronounced the up when we it. competitor, more is shift in customers cutting when think landscape -- not we're dramatically up at to are a new go. and

if -- on think just charge. Manish, how customers? And Understood. mechanics million taken or then to I'm still $XX future or million sorry, about revenue credit of can RPO, that that $XX in mean out these or the from I left of have, the the -- much? million you out $XX through of -- total, go million balance right. And is noncurrent Have All current just we then Okay. does revenue the And you if in come recognized periods? $X

Yes.

is These think $X million to older variety are that said give then associated of just accounts referenced charge remarks, million. take, the And $XX.X in my implementation I $X QX, deemed uncollectible. about the a is as million million I reserves, or way where just their CRPO said either write-offs. $X look -- at with challenges I to the million or earlier, let's reasons specific accounts So given prepared for I for $X geography those -- of of approximately million $X.X think that accounts specific we've the is some for

duration would accounts. that the of for So be those

we have For of would till reserves work is specific had we end the revenue been FY would the recognized $X.X not 'XX, million. which have taken January, $X million the

million, So removed year. Does into the gave that that I that for you? full guidance we then that square for and have is factored the $X.X

Yes.

the the going million 'XX, that $X.X to just fallen CRPO as have then in the that's headwind a in FY $X of [indiscernible]. will would just So million, minus be come rest to

the Correct. provide right if million add for now, just there it's for subscription year. bridge for were at just $XXX.X of around next year X.X was sort this midpoint of your a that for headwind But but And trying this back correct view I year. where revenue, year, you're guide to to the we you we take in before. is

Matt VanVliet from Our with question is BTIG. next

would you're also into packaging Just initiatives renewals if and as then that customers? coming the simplify you wanted and with existing that expectation to you deal that of the impact analysis of out putting through you've is new place. Curious sort any And and what expect there? the in of to have sort as on you now come doing sizes gone your what, on overall back pricing put place streamline to what

Matt, I be to very clear. want

project. We have not that completed

the we've just out fact, in In quarter. rolled last it

not So that it through a impact year. it was another This quarter to was I doing -- that series the any of Trac in set and we as up so outlining have for as will this foundationally project reacceleration quarters. or for out would expect run we're things this

of some would any, account And pressure guess was of that rather give that building associated that out with size renewal what part team of of then the handle just quota? internally in guess, maybe I that discussion expenses of the place, headcount-related sort sense put are that? Helpful. that us hiring more And a overall renewal than and about Okay. their that you can the as I executives team on you team still

is Trac. this Matt,

part teams can add. across a I would think point. renewal was to to the And -- of idea drive I out is that the building your folks. that effort and focus renewal and of that the first One different The there's the variety in past, central a problem X that's of is different effort. create the distributed is, team things

why are Second, hire would going to to AEs, do point, your we more both. we

bookings supporting factored as better we to the are We that things effort. renewal given. describing well as that All to is I'm the try sure making Manish into those hire folks guidance has

incremental it's that. not So to

Fargo. from Berg Our next with question Wells is Michael

here I for impact a have the Manish one charge. have -- I on margin from

operating a but as your line out point lower for that a that I charge starting as guidance other purposes? number. know modeling be opening $XXX of on guiding the prior for guidance. in that coming your the about we items here income of mentioned You not the prior off adjusting think a for for as modeling just versus remarks with of well handful out Can would yet, you're income million operating

Yes.

$XXX assuming from . understand you're to should as So thumb a years? of for I million operating margin there, rough that the out be million what to trying the your rule the $XXX is, ask if used derived question,

Correct.

provide right lot of half we think now I color on as this and year. second initiatives is a I focused both of will Ragy think underway. Trac the There alluded more squarely

more provide constructive I numbers operating color years, the income around in the calls. will we subsequent for think So commentary out

Parker is Our question with Lane Stifel. next from

you're what delivering McShane for products thoughts on going you This little focused? you forward? And products you project, be kind but more of you segments any the focus where initial or starting that on most little more and might Would segments mind or I strategy, color know a you to sharpening Trac, this on going your guys saying less just may providing are Jack focused around value. be Parker. on more mentioned strategic is a

back when companies. to enterprises I When well XX been the course years. We've we've you at. describe done and well really what large good over that full and the really added capabilities. more this think good We've we've built added sold been at really more its years, of able targeted We've of capabilities company it, the a way we've And look is to done lost how as we've when going products over suites of We've to well. and expanded platform sell the to we've executives. and done focus the up we've to capabilities we strategy. that we

business. to reaccelerate strategic the and we should us what growth, that. being we on the I that healthier and if that, just actually really going back that ways, able to do actually diligent a described focusing healthier discipline intent successful -- made drive about driving some reaccelerate be is And in growth So

line ask Got one an some it traditional is to And in the that picking guys I on crossing And deals macro? me. is social guys' self-serve quick wanted then the announced super fair your demand How media maybe management given it. for solution last market? That's social up from SKU maybe early that for finish helpful. it year. you update one aren't the tougher

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question Rosenblatt next from Securities. Trebnick Catharine is with Our

for on part it how I'm to you about I'm up. trying Can when changing there piece trying aspect? going to within what's a we on base? understand back you're from see customer the understand why handle minute. better your -- what some What really And is renewals a and your delay? you go talk a of And that I team do get the issues around renewals

Ragy. this is Catherine,

budget implementation restructuring pretty is implementation renewals The broadly are can we the implementation in and and evolved where industry. internal putting products macro and we that's platform on pressure is So we've that now pronounced thing that and execution are right referred so working impact. substantially. that how platform bucket we that stuff the we has are cuts complex Two, something past know we the churn of things stuff, obviously standardizing by of we're around. The that discipline we on implement One more to templatizing can X categories. more the That's evident. will we that interesting control Sprinklr into that the the pretty about in

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seeing marketing What are from about from of perspective AI CCaaS Okay. how you the And but more there? departments. then departments, the marketing overhang not Martech from your

can suite pressure -- pinpoint of see right? is an just we're not an other probably to and that X, it overhang. is on put But our we're the And overhang. again, seeing AI to able the And it's marketing hard AI, we there. AI so We the things -- smallest fix, our on of it

from Knoblauch question Brian Our is next with Cantor Fitzgerald.

to subscription revenue guess, $XXX of we're it, for or million I call on is year, this revenue. $X at to looking the your just year of million grow based spending, I'm maybe subscription and grow, going million year-over-year, $X full going guess guidance in we're I north marketing.

change Or what going where your it go-to-market start we dependent specifically go-to-market to can . I guess, the back? to motion doing the just on is growth in of are point that's come macro? to you see So productivity the entirely

lot a than be No, to macro more contextual can that by Matt, be internal this is a a Trac. to -- had this going but element going this execution. lot is execution. be of is to of aware of, internal It's driven be our we The

the that structure do our the results that a to the getting. the we're cost focus And is that haven't up and discipline structure have drive growth. operational be We that. -- to of the right recognizing structure We're highlighting we cost You're and now is and that clearly needs optimized. aware rigor built

that structure that, to turn with be get we a for shoring this areas commensurate . should be right in balance have that need that we cost challenges And business that to to around. us the productivity to through up -- is the think our driving expect need we then better the key need I will now the growth be strengthened the at that that's look place

said quite balance have? another that then think guys to one you you the flexible just buyback And Perfect. you for follow-up on given program, sheet there I maybe you authorize share guys the guys plans one completed. any Is

of it the lot sheet evaluate continue at now, always Matt, a cash we shareholders. of to stand our create right flexibility, for look best value forging balance to gives we'll forward. about we'll where us most leveraging the going use and

with Our JMP. next Walravens Citizens question is from Patrick

for This just is Austin front might shore challenges and adoption? complexities. it the is a mean up? last one Like I to of mentioned I you something Yes. do Cole operational down these you wanted seems on it what or guys a It adding think CCaaS on friction quarter. little that more happen? center. like internally? more bit Or like Great. when do to this like about need Is to Can I specifically talk partners Pat. drill that's you to just implementation

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we building partners to internal our document is developing doing muscle, the taking so what own with enable there. implementation that's working What it. external our playbooks, on and it an So can company we're partners though creating

evolve of undergoing. modules I'd development and we of lifting the kind some quarter But And heavy built going is is the to the best. bulk is first upgraded is lifting that that All out bulk of be be the the like the to and done. done. of that continue We're feel probably heavy say to it need

So because migrating on how do been in implementation legacy simplify many there's years. focus some we are, lot in solutions a for cases, now we have of that cases, XX place

institutional There's lot infrastructure they're a do customers' a things quickly lot on stuff. there's you the of of learning when fix your instrument troubleshoot So in control. not how in

the CCaaS the things way very, we're right? very core advertising evolved into of unstructured On media we So well, are to pretty AI-driven progressing. is products, I'm social our data with insights. marketing are evolved that that has happy is Insights That's they product our and product all have management out for on as What learning, social and now started in be side.

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solve So are are underway multi-quarter make that to projects it. I we that to want these know sure

Our question Davidson. next Clarke with from D.A. Wright is

impacted X and had million and new and customers adoption? how $X churn momentary how providing plus many You the new CCaaS

your a of that? back I'm speed mind you lot during sorry, question. there's repeating Would

sure. Yes,

any $X account? added Can then CCaaS customers. you new that you So how of X on result are how adoption? many new churn provide customers a commentary And this impacted a on net basis, million-plus

Manish. is This

growth I that X your [ saying the sequentially, breakdown ] want that core? understand question and so XX just or grew $X million is you're between and you to that of more, CCaaS So the understand

Correct.

Yes.

foremost, So [ sure ARR ] is first and X I not want XX driven. make to understand you the

revenue. months So trailing it's XX all

edged possible it's those we for built recognition revenue have the in So accounts, over $X sold these quarters it's accounts million. prior we as up

because in So the customers, looking regularly. call upsell as from I don't our think breakdown also past we the it's of a at upsell. you these representation know, fair business We've shared comes new of sort it, that, X/X

at to of these good really you sell be can know, the we full And that are platform. the we suites it as So account. selling number any

growth So our earlier into is what of we I back Ragy to strategy stick selling saying, the that's the really more we full core go what's in which here, sticking find think to platform alluded larger aggregate where in accounts, is as driving success. that to

how trend success, quarter? your to bookings about that speaking then compared expectations this And did internal it. enterprise-specific Got

we the do spot. -- think well I sweet Overall, both. continue which is to enterprise in under our

comments. closing time. this Thomas There at further to to any Ragy hand are I'd like questions no over the back floor for

for today. all Paul, joining you, Thank and thank you us

me our have conviction Let that platform. by for close a strong reiterating we

customers are down look support. our next strategy on journey. all continued partners evening. their we forward execution. importantly, We trust vision, again much, to you you and and very our thank we We continue a our our doubling our and and Thank for like that updating quarterly have I'd supports wonderful our have most to a call as employees,

today's concludes This conference.

for you at your disconnect this lines may your You Thank time. participation.