Financial Data and Key Metrics Changes - Total revenue for the first quarter grew 5% year over year to $205.5 million, while subscription revenue increased 4% year over year to $184.1 million [5][22] - Non-GAAP operating income was $36.7 million, resulting in an 18% non-GAAP operating margin for the quarter [5][24] - Free cash flow generation reached a record $81 million for the quarter [5][25] - The subscription revenue base net dollar expansion rate was 102%, reflecting elevated customer churn and down-sell 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% [23] Market Data and Key Metrics Changes - As of April 30, the company had 146 customers generating at least $1 million in annual subscription revenue, a 6% increase year over year [17][22] - The total remaining performance obligations (RPO) were $943.2 million, up 2% year over year, while current RPO was $596.8 million, up 5% year over year [27] Company Strategy and Development Direction - The company is focused on transforming its business through a clear ambidextrous strategy, optimizing its cost structure, and strengthening its product delivery roadmaps [7][12] - Project Bearhug aims to engage the top 500 customers, representing approximately 80% of revenue, to drive accelerated ROI [14] - The company is committed to improving customer implementation processes and post-sales support to enhance customer satisfaction and retention [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties leading to longer sales cycles and increased scrutiny of enterprise spending [9][28] - The company expects FY 2026 to be a transitional year with ongoing challenges but remains optimistic about future growth opportunities [20][33] - Guidance for Q2 indicates total revenue in the range of $205 million to $206 million, representing 4% growth year over year [31] Other Important Information - The company has authorized a new $150 million stock buyback program, expected to be completed by June 30, 2026 [26] - The company is experiencing higher data and hosting costs due to launching new cloud environments [23] Q&A Session Summary Question: How long until the go-to-market strategy reaches its full potential? - Management indicated that FY 2026 is a transitional year, with expectations for improved sales execution and customer engagement in the latter half of the year [39][41] Question: What differentiates Sprinklr in the CCaaS market? - The company highlighted its AI capabilities and unified platform as key differentiators, enabling a seamless 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 core pipeline [51][53] Question: What is driving logo churn and how to address it? - Management attributed churn to past execution challenges and emphasized the need for improved customer engagement and consistent implementation processes [55][57] 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 [65][67] Question: What metrics are being used to measure the success of the new pod structure? - Management is implementing a collaborative approach within sales teams, emphasizing accountability and customer engagement to drive success [100][102]

Summary of Zeta Global Conference Call Company Overview - **Company**: Zeta Global - **Industry**: Marketing Technology (MarTech) Core Points and Arguments 1. **Unique Value Proposition**: Zeta Global offers an all-in-one marketing platform that enables brands to acquire, grow, and retain customers using a single dataset, unlike competitors who focus on either customer retention or acquisition [6][12][14] 2. **Data Advantage**: Zeta has data on approximately 240 million U.S. individuals, representing 90-95% of the U.S. adult population, which is leveraged for identity-based marketing [19][20] 3. **Growth in Agency Partnerships**: The company has shifted from direct enterprise sales to working with agencies, which now account for nearly 20% of revenue, marking a significant growth area [30][68] 4. **Channel Expansion**: The average customer is now utilizing three channels, with a focus on expanding use cases to drive higher average revenue per user (ARPU) [40][41] 5. **Generative AI Investments**: Zeta has made significant investments in generative AI to enhance marketing solutions, aiming to provide easier and faster campaign deployment [51][53] 6. **Customer Retention and ROI**: Zeta emphasizes measurable ROI for clients, which leads to increased investment in their platform as clients see better outcomes [8][10][47] Additional Important Insights 1. **Market Trends**: CMOs are increasingly investing in data convergence and identity-based marketing, which aligns with Zeta's offerings [12][14] 2. **Agency Dynamics**: Independent agencies are engaging with Zeta similarly to direct enterprise relationships, creating multi-year contracts and minimum usage agreements [32][34] 3. **Sales Strategy**: Zeta's sales approach is not tied to RFP cycles, allowing flexibility in entering the market through data solutions [45][46] 4. **Financial Performance**: Zeta has maintained mid to high 20% organic growth, with a forecast of 23% growth for the current year [49][56] 5. **Operational Efficiency**: The company has managed to grow while expanding free cash flow margins, indicating a balance between growth investments and margin expansion [61][70] This summary encapsulates the key points discussed during the conference call, highlighting Zeta Global's strategic positioning, growth initiatives, and market dynamics.