Financial Data and Key Metrics Changes - Total revenue for Q4 FY26 grew 9% year-over-year to $220.6 million, with subscription revenue increasing 6% to $193.4 million [5][14] - Non-GAAP operating income was $37.7 million, representing a 17% non-GAAP operating margin [5][17] - For the full year FY26, total revenue was $857.2 million, up 8% year-over-year, with subscription revenue of $756.3 million, up 5% [21][22] - Non-GAAP operating income for the full year was $146.2 million, equating to a non-GAAP net income per diluted share of $0.49 [21][22] Business Line Data and Key Metrics Changes - Professional services revenue for Q4 was $27.1 million, up 29% year-over-year, driven by large-scale rollouts [14][21] - The subscription revenue base net dollar expansion rate in Q4 was 103%, with a net dollar expansion for the $1 million customer cohort at 115% [15][16] - The average revenue per customer in the $1 million cohort is now above $3 million [15] Market Data and Key Metrics Changes - ARR from generative AI-native Sprinklr Service SKUs grew 50% year-over-year, indicating strong demand for AI capabilities [8][10] - The company operates in 12 regions, with the Americas contributing approximately 50-55% of revenue, Europe around 35%, and Asia-Pacific about 10% [40] Company Strategy and Development Direction - The company is in the second phase of its transformation, focusing on embedding changes to build a stronger foundation for scale and efficiency [7][13] - Key innovation priorities include unified customer intelligence, enterprise-wide automation, AI-driven marketing, and next-generation AI insights [9][10] - The company aims to solidify its baseline and contribution from top-tier enterprise customers through a focus on renewal rates and multiyear deals [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while churn was higher than preferred, improvements in renewal rates were observed in Q4, with expectations for continued improvement in Q1 and Q2 [5][13] - The macro environment remains fluid, particularly due to geopolitical events, but the company is focused on maintaining operational discipline [13][14] - Management expressed confidence in the strategy and commitment to delivering durable growth and long-term shareholder value [14][29] Other Important Information - The board has authorized a new $200 million share buyback program, reflecting confidence in the company's strategy and balance sheet [18] - The company generated $15.9 million in free cash flow in Q4 and $142 million for the year, indicating strong cash conversion [17][22] Q&A Session Summary Question: Is the margin outlook conservative? - Management emphasized a balanced approach to investments while ensuring long-term growth and addressing technical debt [31][32] Question: What is the revenue breakdown between international and U.S. markets? - Management indicated that the Middle East is a healthy region with a good pipeline, contributing to overall revenue [39][40] Question: Will elevated churn continue in FY27? - Management expects renewal rates to improve, indicating a positive trend in customer retention [45][46] Question: What are the plans for increasing margins? - Management highlighted a focus on revenue mix and operational efficiency, with investments in AI solutions and disciplined expense management [48][50] Question: What signals the transition to the acceleration phase? - Management noted the importance of improving renewal rates, customer sentiment, and operational efficiency as indicators for moving to the next phase [89]

Financial Data and Key Metrics Changes - In Q4 FY26, total revenue increased by 9% year-over-year to $220.6 million, while subscription revenue grew by 6% to $193.4 million [4][14] - Non-GAAP operating income for Q4 was $37.7 million, representing a 17% non-GAAP operating margin [4][17] - For the full year FY26, total revenue was $857.2 million, up 8% year-over-year, with subscription revenue of $756.3 million, up 5% [20][21] - Non-GAAP operating income for FY26 was $146.2 million, equating to a non-GAAP net income per diluted share of $0.49 [20][21] Business Line Data and Key Metrics Changes - Professional services revenue in Q4 was $27.1 million, up 29% year-over-year, driven by large-scale rollouts [14][20] - The subscription revenue base net dollar expansion rate in Q4 was 103%, with a net dollar expansion for the $1 million customer cohort at 115% [15][16] - The average revenue per customer in the $1 million cohort is now above $3 million [15] Market Data and Key Metrics Changes - ARR from generative AI-native Sprinklr Service SKUs grew by 50% year-over-year, indicating strong demand for AI capabilities [7] - The company operates in 12 regions, with the Americas contributing approximately 50-55% of revenue, Europe around 35%, and Asia-Pacific about 10% [38] Company Strategy and Development Direction - The company is in the second phase of its transformation, focusing on embedding changes made in FY26 to build a stronger foundation for scale and efficiency [5][12] - Key innovation priorities for FY27 include unified customer intelligence, enterprise-wide automation, AI-driven marketing, and next-generation AI insights [8] - The company aims to solidify its baseline and contribution from top-tier enterprise customers through its "bear hug" strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that while churn was higher than preferred in FY26, renewal rates improved in Q4 and are expected to continue improving in Q1 and Q2 of FY27 [5][12] - The macro environment remains fluid, particularly due to geopolitical events, but the company is focused on maintaining discipline and positioning for growth [12][13] - Management expressed confidence in the strategy and commitment to delivering durable growth and long-term shareholder value [12][13] Other Important Information - The board has authorized a new $200 million share buyback program, reflecting confidence in the company's strategy and balance sheet [18] - The company generated $15.9 million in free cash flow in Q4 and $142 million for the year, with a strong balance sheet of $502.5 million in cash and no debt [17][18] Q&A Session Summary Question: Is the margin outlook conservative? - Management emphasized a balanced approach to investments while ensuring long-term growth and addressing technical debt [30][31] Question: What is the revenue breakdown between international and U.S. markets? - The Middle East is a healthy region for the company, contributing to a good pipeline, with the Americas being the largest market [36][38] Question: Will elevated churn continue in FY27? - Management expects renewal rates to improve, indicating a positive trend in customer retention [44][45] Question: What are the plans for increasing margins? - The company is focused on revenue mix, operational efficiency, and investing in AI solutions to support margin expansion [47][49] Question: What signals the transition to the acceleration phase? - Management highlighted the importance of improving renewal rates, customer sentiment, and operational efficiency as indicators for moving to the next phase [87][89]

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]