Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $3.7 billion, representing an 85% annualized growth rate since 2021 [6] - Gross profit reached $1.5 billion, up 78% annually, with an efficiency ratio improved to 28.3% [6][25] - Quarterly net income almost tripled in the past two years to $637 million, reflecting a 42% year-over-year increase on an FX neutral basis [6][29] Business Line Data and Key Metrics Changes - The active unsecured loans customer base expanded by 56% year over year, while secured customer base more than doubled [9] - Credit card customers rose by 52% in Mexico and 34% in Colombia, indicating strong growth in less mature markets [10] - Total credit portfolio balances reached $27.3 billion, up 40% year over year, with secured lending growing by 200% [16] Market Data and Key Metrics Changes - The customer base expanded to nearly 123 million, with over 4.1 million net additions [5] - In Mexico, the company surpassed 12 million customers, serving approximately 13% of the adult population [5] - In Colombia, nearly 10% of the population is now using the company's services [5] Company Strategy and Development Direction - The company aims to strengthen its position as a leading digital bank in Latin America and expand its product offerings through a deliberate cross-sell strategy [7][9] - Recent management additions are expected to enhance execution capabilities and support long-term growth strategies [11][12] - The focus remains on sustainable growth and profitability, with ongoing investments in technology and customer engagement [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale efficiently while maintaining strong earnings [6][7] - The company is preparing for international expansion and aims to strengthen its regulatory compliance as it enters new markets [38][39] - Management remains cautious about macroeconomic conditions but has not seen significant deterioration in asset quality [58] Other Important Information - The company reported a strong net interest income growth of 33% year over year, reaching a record high of $2.1 billion [21] - The efficiency ratio is expected to decline further in the coming years, driven by revenue growth and disciplined cost management [28] Q&A Session Summary Question: Significance of recent management changes and international expansion - Management changes are strategic for preparing the company for the next five to ten years, focusing on technology and regulatory compliance to strengthen market position [36][38] Question: Clarification on loan origination growth - Loan origination growth is expected to continue strongly, with a focus on unsecured lending and improvements in credit underwriting models [44][46] Question: Concerns about asset quality and NPL formation - The increase in NPL formation is largely seasonal, and management remains confident in asset quality despite macroeconomic concerns [56][58] Question: Trends in deposit growth and customer engagement - Deposit growth in Brazil is attributed to increased customer engagement rather than higher funding costs, while in Mexico, recent changes in deposit design are expected to stabilize customer flows [65][66] Question: Strategy regarding private payroll loans - The company is cautious about the private payroll loan product due to concerns over collateral quality but sees potential for future growth once risks are addressed [88][90]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $3.7 billion, representing an 85% annualized growth rate since 2021 [5] - Gross profit reached $1.5 billion, up 78% annually, with an efficiency ratio improved to 28.3% [5][25] - Quarterly net income almost tripled in the past two years to $637 million, reflecting a 42% year-over-year increase on an FX neutral basis [5][29] Business Line Data and Key Metrics Changes - The active unsecured loans customer base expanded by 56% year over year, while the secured customer base more than doubled [7] - Credit card customers in Mexico rose by 52% and 34% in Colombia, indicating rapid scaling in less mature markets [8] - Total credit portfolio balances reached $27.3 billion, up 40% year over year, with secured lending growing by 200% [15] Market Data and Key Metrics Changes - The customer base expanded to nearly 123 million, with over 4.1 million net additions, maintaining an activity rate above 83% [4] - In Mexico, the company surpassed 12 million customers, serving approximately 13% of the adult population [4] - In Colombia, nearly 10% of the population is now using the company's services [4] Company Strategy and Development Direction - The company aims to strengthen its position as a leading digital bank in Latin America and expand its product offerings through a deliberate cross-sell strategy [6] - Recent management additions are expected to enhance execution capabilities and support long-term growth strategies [9][10] - The focus remains on sustainable growth and profitability, with ongoing investments in customer engagement and product development [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale efficiently while maintaining strong earnings [5] - The company is prepared for potential economic challenges, with a robust credit buffer to withstand unfavorable cycles [61] - Future growth is anticipated in Mexico, with a focus on disciplined execution and long-term value creation [32] Other Important Information - The company has implemented a major upgrade to its credit models, which will significantly increase credit card limits in Brazil [23] - The efficiency ratio rose slightly due to RSU expenses and higher marketing investments, but long-term efficiency improvements are expected [27][28] Q&A Session All Questions and Answers Question: Significance of recent management changes and international expansion - Management changes are strategic for strengthening market position and preparing for internationalization, with a focus on building a world-class team [36][39] Question: Loan origination dynamics and expectations - Loan origination growth is expected to continue, with strong performance in unsecured lending and improvements in credit underwriting models [48][49] Question: Asset quality concerns and seasonal impacts - The increase in NPL formation is largely seasonal, with asset quality metrics performing as expected despite macroeconomic concerns [60] Question: Credit card balance mix and future expectations - The mix of interest-earning installments is expected to remain stable, with potential for slight variations based on new financing products [64] Question: Deposit growth strategy and customer reactions - Deposit growth in Brazil is attributed to increased customer engagement, while in Mexico, recent changes in deposit design are expected to maintain stability [67][72] Question: Private payroll product strategy and market entry - The company is cautiously optimistic about the private payroll product, awaiting improved collateral quality before scaling up [94][96] Question: Balancing loan and deposit growth - The company is comfortable with continued deposit growth to enhance client engagement, even if it poses a short-term headwind to earnings [101]

Strategy - AI first 意味着从在产品中添加 AI 功能发展到通过 AI 视角重新思考如何规划、构建和交付价值 [4] - AI first 公司需要像初创公司一样的好奇心和敏捷性，同时具备企业般的纪律性，两者并行 [12] - 公司需要平衡当前客户需求和对未来 AI 投资之间的关系，避免过度关注一方而落后 [11] - 规划方式需要拥抱不确定性，学习和发现塑造前进的道路，目的地本身也会随着对可能性的了解而演变 [13] Ways of Working - 需要将发现过程视为可重复的、有意的过程，在规划周期中构建用于实验、黑客马拉松和学习的时间 [19][20] - 将流程视为产品，根据结果评估其有效性，如果流程不能提高方向的清晰度、帮助团队或加速决策，则需要迭代或完全删除 [23] - 从速度转向智能速度，意味着培养有目的地快速行动的能力，在清晰、动力和适应性中工作 [25] People - 成为 AI first 公司主要是一种文化转型，需要重新思考在 AI 时代优秀人才的定义，不仅在 AI 团队中，而且在整个公司中 [26][27] - 投资于 T 型人才，即拥有深厚专业知识，同时可以扩展宽度、快速原型设计、跨部门流畅协作并实现端到端系统的人才 [29] - 需要在整个组织内建立 AI 流利度，让每个团队都感到有能力理解 AI，并有足够的信心使用 AI 进行构建 [33][34]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 grew 5% year over year to $205.5 million, while subscription revenue increased 4% year over year to $184.1 million [6][22] - Non-GAAP operating income was $36.7 million, resulting in an 18% non-GAAP operating margin for the quarter [6][25] - Free cash flow generation reached a record $81 million for the quarter [6][26] - The subscription revenue base net dollar expansion rate was 102%, reflecting ongoing customer churn and downsell activity [22] Business Line Data and Key Metrics Changes - Professional services revenue was $21.4 million, contributing to the overall revenue growth [22] - Subscription gross margin was 78%, while professional services gross margin was 6%, leading to a total non-GAAP gross margin of 70% [24] - The number of customers generating at least $1 million in annual subscription revenue increased by 6% year over year to 146 [22][23] Market Data and Key Metrics Changes - The company noted that macroeconomic uncertainty has led to longer sales cycles and increased scrutiny of enterprise spending [9][28] - The core pipeline is reported to be at its highest level in the past 18 months, indicating a healthy market position [11][54] Company Strategy and Development Direction - The company is focused on transforming its business through an ambidextrous strategy, optimizing cost structures, and strengthening product delivery roadmaps [8][12] - Project Bearhug aims to engage the top 500 customers, representing approximately 80% of revenue, to improve customer relationships and drive ROI [14][15] - The company is committed to enhancing its AI-native platform to deliver unified customer experience management [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that FY 2026 is a transitional year with expected challenges due to past execution issues and macroeconomic factors [9][10] - There is optimism about future growth as the company works to improve execution and customer engagement [20][21] - The company maintains its guidance for FY 2026, expecting subscription revenue to be in the range of $741 million to $743 million, representing 3% growth year over year [33][34] Other Important Information - The company has authorized a new $150 million stock buyback program, expected to be completed by June 30, 2026 [26] - Total remaining performance obligations (RPO) increased by 2% year over year to $943.2 million [27] Q&A Session Summary Question: What is the timeline for the go-to-market strategy to reach its full potential? - Management indicated that FY 2026 is transitional, with expectations for improved sales execution and customer engagement in the latter half of the year [40][42] Question: What differentiates Sprinklr in the CCaaS market? - The AI capabilities of the platform are key differentiators, providing a unified experience for agents and customers [44][46] Question: Is the elongation in sales cycles broad-based across customers? - Management noted that the scrutiny is widespread, affecting all customers, but emphasized that the company is seeing opportunities in its pipeline [52][54] Question: What is driving logo churn and how should it be viewed through the year? - Management attributed churn to execution challenges and emphasized the need for improved customer engagement and implementation consistency [55][56] Question: What R&D activities are being pursued to help with renewals? - The company is focusing on improving user experience and exploring acquisition opportunities to enhance its core offerings [66][68]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights a significant gap between the potential of generative AI and its actual implementation within enterprises, with many organizations facing challenges in adoption and alignment [6][7][51] Summary by Sections Voices of AI Adopters - A survey of 1,600 knowledge workers, including 800 C-suite executives and 800 employees, was conducted to understand the state of generative AI adoption [14][15][17] Key Findings - 88% of employees and 97% of executives report benefiting from generative AI, yet 72% of C-suite executives acknowledge facing challenges in the adoption process [26][27][51] - There is a disconnect between employees and executives regarding the success of AI implementation, with only 45% of employees feeling their company has been successful compared to 75% of executives [29] Widespread AI Optimism - 90% of employees and 93% of executives express optimism about their company's approach to generative AI, driven by factors such as revenue opportunities and employee interest [37][39] Generative AI Adoption Challenges - Key challenges include internal alignment issues, employee dissatisfaction with AI tools, and a lack of effective change management processes [27][28][30][32] - 41% of Millennial and Gen Z employees report sabotaging their company's AI strategy due to concerns about job security and tool quality [30][67] Strategies to Maximize the Potential of Generative AI - The report suggests formalizing a generative AI strategy, nurturing AI champions within organizations, and selecting the right vendors to support AI initiatives [82][87][97] - Companies that invest more significantly in generative AI see a 40 percentage-point gap in success compared to those that invest less [86] Traits of Supportive Technology Partners - Executives express dissatisfaction with their current generative AI vendors, indicating a need for better support in areas such as security, user experience, and integration [106][113] The Path to AI Transformation - Successful AI transformation requires deep integration of AI into all functions, empowering employees, and choosing the right technology partners [114][116]