Financial Data and Key Metrics Changes - Total revenue for Q3 grew 9% year-over-year to $219.1 million, while subscription revenue increased 5% year-over-year to $190.3 million [5][16] - Non-GAAP operating income was $33.5 million, resulting in a 15% non-GAAP operating margin for the quarter [5][20] - Professional services revenue was $28.8 million, driven by large CCaaS rollouts, with a net dollar expansion rate of 102% [17][18] - Non-GAAP subscription gross margin was 77%, and total non-GAAP gross margin was 67% [19][20] Business Line Data and Key Metrics Changes - The company is focusing on Project Bear Hug, which aims to deepen engagement with the top 700 customers, representing over 80% of total revenue [9] - The revenue contributed by the $1 million customers' cohort increased by 9% year-over-year, with a net dollar expansion rate of 113% [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) were $857.6 million, down 5% year-over-year, while current RPO was $562.2 million, up 3% year-over-year [21] - The company expects total billings of approximately $320 million for Q4, traditionally the strongest quarter [22] Company Strategy and Development Direction - The company is in a transformation phase, focusing on improving its position in the customer experience market and leveraging its AI-powered platform [6][8] - The strategy includes enhancing customer engagement through first-party data and personalized omnichannel experiences [6][14] - The leadership team has been strengthened with new appointments, including a new CFO and Chief Product and Corporate Strategy Officer [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and commitment to driving sustainable growth and long-term shareholder value [8][14] - The company is optimistic about improving renewal rates and customer engagement metrics, indicating a stronger position than at the start of the year [8][14] - Management acknowledged that transformation takes time and emphasized the importance of executing several quarters together to establish a solid foundation [30][75] Other Important Information - The company generated $15.5 million in free cash flow in Q3 and $126 million year-to-date, with a strong balance sheet of $480.3 million in cash and no debt [20] - The company raised its full-year revenue guidance, now expecting total revenue in the range of $853 million to $854 million, representing 7% growth year-over-year [24] Q&A Session Summary Question: How sustainable is the revenue performance as the company heads into next year? - Management indicated that while Q3 showed good performance, it is essential to string several quarters together to assess sustainability [29][30] Question: What is at risk with Project Bear Hug, and what outcomes can be expected? - Management explained that Bear Hug aims to deepen customer relationships, and successful engagement can lead to better renewal rates and reduced churn [32][36] Question: How is the company stabilizing its leadership bench amid recent changes? - Management stated that most senior leadership changes are complete, and the current team is experienced and aligned with the company's strategy [40][42] Question: How did renewals in Q3 compare to expectations, and what is anticipated for Q4? - Management reported that renewal rates met or exceeded expectations in Q3, and they are actively managing renewals for upcoming quarters [49][50] Question: Can you provide an update on pricing and bundling initiatives? - Management confirmed that the first phase of new pricing and bundling has been implemented with positive early feedback, and plans to expand this to existing customers are underway [58][60]

Financial Data and Key Metrics Changes - Total revenue for Q3 grew 9% year-over-year to $219.1 million, while subscription revenue increased 5% year-over-year to $190.3 million [4][16] - Non-GAAP operating income was $33.5 million, resulting in a 15% non-GAAP operating margin for the quarter [4][19] - Free cash flow for Q3 was $15.5 million, with a year-to-date total of $126 million [19][24] - Subscription revenue-based net dollar expansion rate was 102%, showing stabilization [17] Business Line Data and Key Metrics Changes - Professional services revenue was $28.8 million, driven by large CCaaS rollouts expected to translate into future software subscription revenue [17] - The number of customers contributing $1 million or more in subscription revenue decreased by four to 145, but revenue from this cohort grew 9% year-over-year [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) were $857.6 million, down 5% year-over-year, while current RPO was $562.2 million, up 3% year-over-year [20][21] - The company expects total billings of approximately $320 million for Q4, traditionally the strongest quarter [22] Company Strategy and Development Direction - The company is focused on deepening engagement with its top 700 customers through Project Bear Hug, which aims to improve renewal rates and customer relationships [9][31] - The strategy includes leveraging AI capabilities to enhance customer experience and operational efficiency [5][10] - The company is in a transitional year, with plans to embed operational changes and drive sustainable growth [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and noted improvements in key metrics, but emphasized the need for continued execution and patience [28][56] - The leadership team is aligned and focused on scaling the business with operational discipline [15][16] - Management anticipates that FY27 will provide clearer guidance as the company transitions into an acceleration phase [55] Other Important Information - The company has made significant operational improvements, including streamlining processes and enhancing cross-functional alignment [8] - The balance sheet remains strong, with $480.3 million in cash and marketable securities and no debt [19] Q&A Session Summary Question: How sustainable is the recent revenue performance as the company heads into next year? - Management indicated that while Q3 showed good performance, it is essential to string several quarters together to assess sustainability [28][29] Question: What is the expected impact of Project Bear Hug on troubled accounts? - Project Bear Hug aims to deepen customer relationships and has shown positive metrics, with a net dollar expansion rate of 113% for the $1 million-plus customer cohort [31][32] Question: How is the leadership team stabilizing after recent changes? - Management stated that most senior leadership changes are complete, and the team is experienced and focused on the transformation journey [33][36] Question: How did renewals in Q3 compare to expectations? - Renewals met or exceeded expectations, with improved predictability in metrics, and management is actively managing renewals for upcoming quarters [39][40] Question: What is the company's approach to AI capabilities and investments? - The company views its AI-native platform as critical for unifying customer experience and plans to continue investing in AI capabilities [49][52]

Core Insights - Sprinklr reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.1 per share a year ago, resulting in an earnings surprise of +33.33% [1] - The company achieved revenues of $219.07 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 4.54% and increasing from $200.69 million year-over-year [2] - Sprinklr has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Sprinklr's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $210.96 million, while for the current fiscal year, it is $0.43 on revenues of $838.03 million [7] Industry Context - The Technology Services industry, to which Sprinklr belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Sprinklr's Q3 FY26 total revenue showed a year-over-year growth of 9%[8] - The company's total remaining performance obligations (RPO) reached $858 million[8] - Subscription revenue margin was 77% for Q3 FY26[8] - Sprinklr's Q3 FY26 free cash flow was $16 million[8] - The net dollar expansion rate was 102%[8] - The company repurchased $150 million of Class A shares during Q2 and Q3 FY26[41] Customer Base - Sprinklr has 145 customers with over $1 million in revenue[8] Guidance - Sprinklr projects Q4 FY26 subscription revenue to be between $191 million and $192 million, a 5% year-over-year increase at the midpoint[43] - The company anticipates full-year fiscal 2026 total revenue to be between $853 million and $854 million, a 7% year-over-year increase at the midpoint[43]

Financial Performance - Q3 total revenue reached $219.1 million, representing a 9% increase year-over-year from $200.7 million[6] - Q3 subscription revenue was $190.3 million, up 5% year-over-year from $180.6 million[7] - GAAP operating income for Q3 was $11.6 million, compared to $7.9 million in the same quarter last year, while non-GAAP operating income increased to $33.5 million from $23.0 million[7] - Q3 GAAP net income per share was $0.01, down from $0.04 year-over-year, while non-GAAP net income per share rose to $0.12 from $0.10[7] - Total revenue for the three months ended October 31, 2025, was $219.068 million, a 9.3% increase from $200.689 million in the same period of 2024[22] - Subscription revenue increased to $190.295 million for the three months ended October 31, 2025, compared to $180.634 million in 2024, reflecting a growth of 5.9%[22] - Operating income for the three months ended October 31, 2025, was $11.551 million, compared to $7.889 million in the same period of 2024, marking a 46.5% increase[22] - Net income for the three months ended October 31, 2025, was $2.904 million, down from $10.455 million in 2024, indicating a decline of 72.2%[22] Cash Flow and Financial Position - As of October 31, 2025, total cash, cash equivalents, and marketable securities amounted to $480.3 million[7] - Cash flow from operating activities for the nine months ended October 31, 2025, was $138.528 million, significantly higher than $72.225 million in 2024[24] - Free cash flow for the nine months ended October 31, 2025, reached $125.973 million, compared to $57.616 million in 2024, representing a 118.5% increase[26] Expenses and Costs - Research and development expenses for the three months ended October 31, 2025, were $24.707 million, up from $23.298 million in 2024, reflecting a growth of 6.0%[22] - Total operating expenses for the three months ended October 31, 2025, were $133.935 million, slightly down from $134.951 million in 2024[22] - Stock-based compensation expense for the three months ended October 31, 2025, was $20.575 million, up 33.8% from $15.376 million in 2024[27] - Restructuring costs for the nine months ended October 31, 2025, were $15.859 million, compared to $2.965 million in 2024[27] - The company reported a non-recurring litigation cost of $1.817 million for the nine months ended October 31, 2025[27] Customer Metrics - The company reported 145 customers contributing $1 million or more in revenue[6] Future Guidance - For Q4 FY2026, Sprinklr expects total revenue between $216.5 million and $217.5 million, and subscription revenue between $191 million and $192 million[6] - The company anticipates non-GAAP net income per share for Q4 to be between $0.09 and $0.10, assuming 254 million diluted weighted-average shares outstanding[6] Performance Obligations - Remaining performance obligations (RPO) decreased by 5% year-over-year, while current RPO (cRPO) increased by 3%[6] Non-GAAP Metrics - Non-GAAP operating margin for Q3 was 15%, up from 11% in the same quarter last year[7] - The company reported a non-GAAP operating income of $33.515 million for the three months ended October 31, 2025, compared to $23.000 million in 2024, an increase of 45.5%[26] - Non-GAAP net income for the three months ended October 31, 2025, was $29.066 million, representing an increase of 13.3% from $25.566 million in 2024[27] - Non-GAAP net income for the nine months ended October 31, 2025, was $95.211 million, an increase of 30.5% compared to $72.869 million in 2024[27] Share Metrics - Weighted-average shares outstanding for the three months ended October 31, 2025, were 244,916, a decrease from 252,054 in 2024[27] - Total additions for the nine months ended October 31, 2025, amounted to $81.260 million, an increase of 62.5% from $49.939 million in 2024[27] Tax Rate - The company utilized a non-GAAP tax rate of 26% for the three and nine months ended October 31, 2025[27]

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Core Insights - Sprinklr reported financial results for its third fiscal quarter ended October 31, 2025, indicating progress in its transformation to better serve customers and partners [1] - The company expressed optimism about the improving quality of customer engagements and aims to close the year with strong momentum [1] Financial Performance - The financial results for Q3 reflect continued progress in the company's strategic initiatives [1] - The company remains focused on enhancing customer experiences and partnerships [1]

Core Insights - The upcoming earnings report for Sprinklr (CXM) is projected to show quarterly earnings of $0.09 per share, reflecting a 10% decline year-over-year, while revenues are expected to reach $209.55 million, indicating a 4.4% increase compared to the previous year [1] Earnings Estimates - Analysts have maintained the consensus EPS estimate for the quarter over the last 30 days, suggesting a collective reevaluation of initial estimates [1][2] - The estimated 'Revenue- Subscription' is projected at $186.49 million, representing a 3.2% increase from the prior-year quarter [4] - The 'Revenue- Professional services' is expected to be $23.07 million, indicating a 15% increase from the prior-year quarter [4] - The consensus estimate for 'Gross Margin - Subscription' is 76.5%, down from 80.0% in the previous year [4] Market Performance - Sprinklr shares have experienced a return of -5.1% over the past month, contrasting with a +0.4% change in the Zacks S&P 500 composite [5] - With a Zacks Rank 2 (Buy), Sprinklr is anticipated to outperform the overall market in the near future [5]

Core Insights - SoundHound AI, Inc. has been recognized as a Leader in Everest Group's 2025 PEAK Matrix® Assessment for Conversational AI and AI Agents in Customer Experience Management [2][5] - The evaluation highlights the evolution of conversational AI products into autonomous AI agents capable of managing multi-step tasks [3][4] Company Overview - SoundHound AI specializes in voice and conversational AI, providing solutions that enhance customer experiences across various industries including retail, financial services, healthcare, and automotive [8] - The company’s proprietary voice engine, Polaris, is noted for its superior word error rates and advanced conversational features [4][8] Product Features - The Amelia platform, particularly its latest version Amelia 7 launched in May 2025, offers agentic capabilities allowing AI agents to listen, reason, and act on complex tasks [5][6] - Amelia's AI agents can operate across multiple channels such as chat, text, and voice, utilizing advanced speech recognition technology [6][8] Technological Innovations - SoundHound AI's architecture integrates cognitive reasoning, orchestration, and execution to support complex enterprise AI use cases [5] - The platform includes a no-code agent designer for simplified deployment and a Supervisor AI layer for dynamic agent coordination [5] Market Position - The recognition from Everest Group underscores SoundHound AI's commitment to delivering innovative solutions that enhance customer interactions and operational efficiency [5][8]

Group 1 - TELUS Digital has been named a Leader in the Everest Group's CXM PEAK Matrix® for the Americas [1] - The recognition is attributed to TELUS Digital's capabilities in customer experience (CX) transformation, Fuel iX™, agentic AI, and automation [1]