Core Insights - Sprinklr's stock fell by 10% following its Q2 fiscal 2026 results, despite a generally positive market day for the S&P 500, which rose by 0.5% [1] Financial Performance - The company reported revenue of $212 million for the quarter, an 8% increase year-over-year, with subscription revenue at nearly $189 million, reflecting a 6% improvement [2] - Non-GAAP net income surged by 57% to just under $34 million, or $0.13 per share, surpassing analyst expectations of slightly over $205 million in revenue and $0.10 per share in adjusted earnings [4] Management Commentary - CEO Rory Read expressed a somewhat apologetic tone regarding the results, emphasizing ongoing transformation efforts to enhance customer service and the quality of customer engagements, alongside upcoming R&D innovations [5] Executive Changes - Sprinklr announced a C-suite transition, appointing former Dell Technologies executive Scott Millard as the new chief revenue officer [6] Future Guidance - The company provided guidance for the third quarter and the full fiscal year, forecasting total revenue between $837 million and $839 million, exceeding the consensus estimate of nearly $826 million, with adjusted net income expected to be between $0.42 and $0.43, above the average projection of $0.40 [8]

Market Overview - The stock market is experiencing strain near all-time highs, indicating investor concerns about valuations [1] - Large-cap tech stocks are primarily responsible for driving the majority of the year's market performance, suggesting a disparity in stock valuations [1] Analyst Insights - Gary Alexander has extensive experience in covering technology companies and has been involved with seed-round startups, providing insights into current industry themes [1] - His contributions to Seeking Alpha since 2017 highlight his engagement with market trends and investor sentiment [1]

Financial Data and Key Metrics Changes - Total revenue for Q2 FY26 grew 8% year over year to $212 million, while subscription revenue increased 6% year over year to $188.5 million [5][20] - Non-GAAP operating income reached a record $38.2 million, resulting in an 18% non-GAAP operating margin for the quarter [5][22] - Free cash flow generated was $29.8 million, with a total of $123.5 million in the first half of FY26, excluding restructuring payments [22][29] Business Line Data and Key Metrics Changes - Professional services revenue was $23.6 million, driven by large CCaaS implementations [20] - Subscription revenue-based net dollar expansion rate was 102%, reflecting ongoing elevated customer churn and downsell activity [20][21] - The number of customers generating at least $1 million in annual subscription revenue increased to 149, up three from the previous quarter [21][18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) was $923.8 million, up 4% year over year, while current RPO (CRPO) was $597.1 million, up 7% year over year [24] - Calculated billings for Q2 were $200.6 million, an increase of 4% year over year [23] Company Strategy and Development Direction - The company is in a transitional year, focusing on business optimization and entering the second phase of transformation, which includes strategic investments in AI and customer engagement [6][7] - Project BearHug aims to minimize churn by deeply engaging with top customers, representing over 80% of total revenue [11][13] - The company is enhancing its product offerings, including AI functionality and improved customer feedback management [16][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in renewals and customer satisfaction but expressed optimism about improvements in the second half of FY26 and into FY27 [32][34] - The focus remains on improving execution, customer engagement, and addressing past implementation issues to drive growth [10][18] - Management expects total revenue for Q3 to be in the range of $209 million to $210 million, reflecting a 4% growth year over year at the midpoint [24][26] Other Important Information - The company has a healthy balance sheet with $474 million in cash and marketable securities and no debt outstanding [23] - The CFO, Manish Sarin, will be leaving the company, and the CEO will assume interim responsibilities while a search for a new CFO is conducted [5][29] Q&A Session Summary Question: When will the company see a bend in its transformation journey? - Management indicated that improvements in renewals, customer satisfaction, and growth metrics are expected in the second half of FY26 into FY27 [31][32] Question: Can you provide an example of a significant churn situation? - Management explained that renewal pressure has been ongoing for several years, with efforts focused on improving customer engagement and execution to mitigate churn [38][39] Question: What are the drivers for unlocking demand in the CCaaS business? - Management highlighted the importance of successful large implementations and enhancing customer experience as key drivers for growth in the CCaaS segment [49][51] Question: How is the hybrid pricing model impacting revenue and profitability? - Management discussed the implementation of a simplified pricing model aimed at increasing customer satisfaction and driving subscription revenue [56][58] Question: What is the company's perspective on AI's impact on customer understanding and adoption? - Management believes that AI is a critical technology and emphasized the importance of integrating AI into workflows to unlock value for customers [77][79]

Financial Data and Key Metrics Changes - Total revenue for the second quarter grew 8% year over year to $212 million, while subscription revenue increased 6% year over year to $188.5 million [4][18] - Non-GAAP operating income reached a record $38.2 million, resulting in an 18% non-GAAP operating margin for the quarter [4][21] - Free cash flow generated was $29.8 million, or $31 million after adjustments for restructuring payments [21][28] - Non-GAAP net income per diluted share was $0.13 [21] Business Line Data and Key Metrics Changes - Professional services revenue was $23.6 million, driven by large CCaaS implementations [18] - Subscription revenue-based net dollar expansion rate was 102%, reflecting ongoing customer churn and downsell activity [18] - The number of customers generating at least $1 million in annual subscription revenue increased to 149, up three from the previous quarter [17][19] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) was $923.8 million, up 4% year over year, while current RPO was $597.1 million, up 7% year over year [23] - Calculated billings for the second quarter were $200.6 million, an increase of 4% year over year [22] Company Strategy and Development Direction - The company is in a transitional year, focusing on business optimization and entering the second phase of transformation, which includes strategic investments in AI functionality and enhanced product capabilities [5][8] - Project BearHug aims to engage top customers to minimize churn and improve customer satisfaction [11][12] - The company is making incremental investments to extend enterprise leadership across core and Sprinklr Service [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in renewal cycles and customer churn, emphasizing the importance of improving customer engagement and satisfaction [10][11] - The company expects a bend in business metrics in the second half of FY26 into FY27, with improvements in renewals and customer satisfaction [31][32] - Management remains optimistic about the impact of AI investments and the overall transformation strategy [41][75] Other Important Information - The CFO, Manish Sarin, will be leaving the company on September 19, 2024, with the CEO assuming interim responsibilities [4][5] - The company has a healthy balance sheet with $474 million in cash and marketable securities and no debt outstanding [21] Q&A Session Summary Question: When will the company see a bend in business metrics? - Management indicated that improvements in renewals and customer satisfaction are expected in the second half of FY26 into FY27, with metrics to watch including renewals and customer engagement [30][31] Question: Can you provide an example of a significant churn situation? - Management explained that renewal pressure has been ongoing for several years, with efforts focused on improving customer engagement and addressing execution issues [37][38] Question: What is the impact of AI investments on costs? - Management noted that increased uptake in AI products is leading to higher cloud costs, but the growth in consumption is positive [40][41] Question: What are the drivers for unlocking demand in the CCaaS business? - Management highlighted the importance of successful large implementations and enhancing customer experience as key drivers for growth in the CCaaS space [49][50] Question: How is the hybrid pricing model being received? - Management explained that the new pricing model aims to simplify customer purchasing and improve satisfaction, with plans to expand it across the product portfolio [54][56] Question: What is the company's approach to new customer acquisition? - Management stated that the focus for the year has been on expanding existing accounts rather than aggressively pursuing new logos, with a mix of 25% new logo and 75% expansion planned [80]

Financial Data and Key Metrics Changes - Total revenue for Q2 FY26 grew 8% year over year to $212 million, while subscription revenue increased 6% year over year to $188.5 million [4][18] - Non-GAAP operating income reached a record $38.2 million, resulting in an 18% non-GAAP operating margin for the quarter [4][21] - Free cash flow generated was $29.8 million, with a total of $123.5 million in the first half of FY26, excluding restructuring payments [21][28] Business Line Data and Key Metrics Changes - Professional services revenue was $23.6 million, driven by large CCaaS implementations [18] - Subscription revenue-based net dollar expansion rate was 102%, reflecting ongoing customer churn and downsell activity [18] - The number of customers generating at least $1 million in annual subscription revenue increased to 149, up by three from the previous quarter [17][19] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) was $923.8 million, up 4% year over year, while current RPO (CRPO) was $597.1 million, up 7% year over year [23] - Calculated billings for Q2 were $200.6 million, an increase of 4% year over year [22] Company Strategy and Development Direction - The company is in a transformation phase, focusing on business optimization and strategic investments to improve execution and customer service [5][6] - Investments are being made in AI functionality, enhanced video capabilities, and technical skills to better serve customers [8][9] - The company aims to strengthen its leadership team and improve customer engagement through initiatives like Project BearHug [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in renewals and customer churn, emphasizing the importance of improving customer satisfaction and engagement [10][11] - The company expects to see improvements in renewals and customer satisfaction metrics in the second half of FY26 and into FY27 [31][32] - Management remains optimistic about the transformational journey and the potential for growth in the coming quarters [17][32] Other Important Information - The CFO announced plans to step down, with the CEO assuming interim responsibilities while a search for a new CFO is conducted [4][5] - The company has completed a $150 million stock buyback program, purchasing 16.5 million shares [22] Q&A Session Summary Question: When will the company see a bend in the transformation journey? - Management indicated that improvements in renewals and customer satisfaction are expected in the second half of FY26, with metrics to watch including renewals and customer engagement [30][31] Question: Can you provide an example of a significant churn situation? - Management explained that churn has been influenced by inconsistent execution and customer engagement, but efforts like Project BearHug are aimed at improving these relationships [37][38] Question: What is the impact of AI-related investments on costs? - Management noted that increased costs are associated with the uptake of AI products, including hosting and support, but the growth in consumption is positive [40][41] Question: What are the drivers for unlocking demand in the CCaaS business? - Management highlighted the importance of successful large implementations and enhancing customer experience as key drivers for growth in the CCaaS segment [49][50] Question: How is the hybrid pricing model being received by customers? - Management stated that the new hybrid pricing model aims to simplify customer purchasing and improve satisfaction, with plans to expand it across the product portfolio [54][56] Question: What is the company's approach to new customer acquisition? - Management indicated a focus on expanding existing customer relationships while being cautious about introducing new logos until execution improves [80]

Sprinklr (CXM) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +30.00%. A quarter ago, it was expected that this customer experience software developer would post earnings of $0.1 per share when it actually produced earnings of $0.12, delivering a surprise of +20%.Over the last four qu ...

Financial Performance - Total RPO reached $924 million[4], with subscription revenue accounting for 78%[4] - The company achieved a net dollar expansion rate of 102%[4] - Q2 total revenue grew by 8% year-over-year[4] - LTM Q2 FY26 subscription revenue was $735.3 million, a 5% increase year-over-year[25] - LTM Q2 FY26 total revenue reached $820.8 million, reflecting a 6% year-over-year growth[25] - The company has 149 customers with over $1 million in revenue[4] Guidance - Q3 FY26 subscription revenue is projected to be between $186 million and $187 million, a 3% increase year-over-year at the midpoint[37] - Q3 FY26 total revenue is expected to be between $209 million and $210 million, a 4% increase year-over-year at the midpoint[37] - Full-year fiscal 2026 subscription revenue is guided to be between $746 million and $748 million, a 4% increase year-over-year at the midpoint[37] - Full-year fiscal 2026 total revenue is projected to be between $837 million and $839 million, a 5% increase year-over-year at the midpoint[37]

Sprinklr Announces Second Quarter Fiscal 2026 Results NEW YORK, New York--September 3, 2025--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second fiscal quarter ended July 31, 2025. "Our Q2 results reflect the continued and intentional progress we are making in our transformation to better serve our customers and partners. And while we still have work to do, we are encouraged by the increasing quality ...

Core Viewpoint - The article discusses the investment outlook for Sprinklr (NYSE: CXM), maintaining a hold rating due to the expectation that valuation upside will not occur until the company delivers tangible results from initiatives led by the new CEO [1]. Group 1: Company Overview - Sprinklr is currently under the leadership of a new CEO, and the author emphasizes the need for the company to show concrete results from recent initiatives before any positive valuation changes can be anticipated [1]. Group 2: Investment Strategy - The author highlights a diverse investment background, utilizing various approaches such as fundamental, technical, and momentum investing to refine their investment process [1]. - The purpose of writing on Seeking Alpha is to track investment ideas and connect with like-minded investors [1].

Core Insights - Sprinklr reported revenue of $205.5 million for the quarter ended April 2025, marking a year-over-year increase of 4.9% and an EPS of $0.12 compared to $0.09 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $201.89 million by 1.79%, and the EPS surpassed the consensus estimate of $0.10 by 20% [1] Financial Performance Metrics - Gross Margin for Subscription was reported at 77%, above the five-analyst average estimate of 76.4% [4] - Gross Margin for Professional Services was 4%, compared to the two-analyst average estimate of -1% [4] - Subscription Revenue reached $184.13 million, exceeding the average estimate of $182.39 million by analysts, representing a year-over-year increase of 3.8% [4] - Professional Services Revenue was reported at $21.37 million, surpassing the average estimate of $19.49 million, reflecting a year-over-year change of 14.9% [4] Stock Performance - Sprinklr's shares have returned 17.1% over the past month, outperforming the Zacks S&P 500 composite's 5.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]