Sprinklr, Inc.

ladies and gentlemen thank you for standing by and welcome to sprinkler's second quarter of fiscal 2022 earnings conference call joining us today are sprinkler's founder and ceo rajee thomas vivek kundra chief operating officer and chris lynch chief financial officer at this time all participants are in a listen-only mode after the speaker's remarks there will be a question and answer session please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, Mr. Chris Lynch, for introductory remarks. Please go ahead, Chris.

Thank you, and thanks to everyone joining us today for Sprinklr's second quarter of fiscal year 22 earnings call, our first as a public company. We issued our earnings release a short time ago, filing the associated 8K with the SEC, and we've also made that available on the investor relations section of our website. As a reminder, During today's call, we'll be making forward-looking statements about the business and about the financial results of Sprinklr that involve many assumptions, risks and uncertainties, and our actual results might differ materially. Any forward-looking statements that we make on this call are based on our beliefs and assumptions as of today, and we disclaim any obligation to update them. For more details on the risks associated with these forward-looking statements, please refer to the text in the company's press release issued today and to our periodic reports filed with the SEC, including our prospectus, filed on June 24th, and our quarterly report on Form 10Q for the quarter ended July 31st, 2021, that will be filed with the SEC. With that, let me turn the call over to our founder and CEO, Mr. Raji Thomas. Raji.

Thanks, Chris, and hello, everyone. It's wonderful to speak with you all today during our first earnings call as a publicly traded company. Our IPO was an important milestone, but it was just one step in what we believe will be an exciting multi-decade journey. We've always believed that this is a marathon, not a sprint. And today, I'm pleased to share that our first quarter as a public company was a strong one, with Q2 total revenue rising to $118.7 million, up 27% year over year. This is the third consecutive quarter that we have accelerated our revenue growth rate, which reflects continued validation from the world's largest enterprises that there's a massive need to deliver a unified customer experience across digital channels and customer-facing functions, and that our unified CXM platform is the solution. At Sprinklr, everything we do centers around delivering value for our customers. building the world's best product and creating an amazing culture. And when I look at the momentum we built this quarter, it's clear that focus is paying off. Through Q2, we now have 74 customers with more than a million in trailing 12-month subscription revenue. These are the world's largest and most iconic brands who continue to grow with us quarter after quarter, and year after year, spending a million, five million, and in some cases, over $10 million annually. We know how mission critical we've become to these global companies, and it's something that we're truly humbled by. It's why we are so obsessed with creating transformational enterprise value, whether it's increasing revenue, reducing costs, or mitigating risk for these brands, and delighting them at every touchpoint from product to marketing and from sales to success. This quarter, we were also named a leader in the most recent Forrester Wave social suites report, which is a definitive ranking of tech providers in the social media management space. With the foundation that started in social back in 2009, SMMS is a category that we've been at the top of for more than a decade. And it's driven by three things, the unmatched depth and breadth of our platform, our laser focus on the largest companies in the world, and a broad vision that always so social as a part of a much larger customer experience management thesis. From the beginning, we knew that every customer facing function from marketing to care would need to listen to, engage, and reach customers across an ever-growing number of channels, not just social. And that secular shift of connected and empowered customers would require those functions to adopt dozens of new capabilities, from advocacy and influencer management and marketing, to live chat and communities in customer care. We knew too, as this happened, in the evolution of every major software industry category throughout the years, like ERP and human capital management, that the point solutions that were cropping up to address these areas would eventually be replaced by a select few platforms designed to solve the full problem, which is why we pursued that architectural vision relentlessly from the start, building 31 products within our four product suites on one platform. unified code base and one unified platform and putting a decade's worth of engineering between us and everyone else in the industry in that process. It's great to see that the analyst community is continuing to validate that vision and our execution with Forrester's report ranking sprinkler as having a stronger current offering than anyone else. But at the end of the day, what our customers really love is our people. I can't tell you the number of times I've heard from customers that there's something special about Sprinklerite, whether it's their willingness to go the extra mile or the fact that they do it with a smile always. Nothing makes me prouder. So it was incredibly gratifying to hear that in Q2, Sprinkler was certified as a great place to work. and recognized by Inc., Fortune, and Computer World for the culture that we're aspiring to build each and every day. Now, I'd like to take a step back for a moment to share some of the market trends we're seeing and why we are more bullish than ever about the opportunity in front of us. When COVID hit last year, every company that didn't already know it became acutely aware that their digital transformation initiatives needed to accelerate. In the world's largest companies where we operate, even the most well-intentioned and urgent desires to transform can take 6, 12, sometimes 18 months to really kick off. So the acceleration in digital transformation we're seeing has not been instantaneous, but it has been obvious with a number of trends picking up that we fully expect to stay. One of the most significant trends that we see is in customer care, where we're seeing a huge opportunity with the digital transformation of the traditional call center. During the pandemic, many companies quickly had to pivot from in-person call centers centered around traditional channels like the phone to virtual care centers increasingly focused on modern channels like messaging, and live chat. Now we're seeing many companies realize that by shifting from traditional to modern channels, they can not only deliver a better customer experience, they can do so at a lower cost. At the start of the pandemic, for example, one well-known electronics manufacturer came to us to consolidate multiple point solutions within customer care. And they wanted to unify care and marketing workflows as well to improve their customers' experience and provide self-help solutions like chatbots so customers could troubleshoot their own issues faster on the modern channels that they prefer, all while deflecting call volumes from more expensive call centers. So far, this company has reduced costs by 8%. while increasing customer satisfaction by 18%. That's a double win, reducing costs and making customers happier. And last quarter, we doubled the size of our partnership with the customer, adding more products like modern research and modern sales and engagement. We also had a big win this quarter with one of the world's largest banks that we believe really signals our arrival in the CCaaS contact center as a service space, as we beat out some of the industry's biggest names, thanks to a digital-first and AI-powered approach. Today, we're not only replacing more than 10 point solutions at this company and helping this customer completely reimagine its customer care infrastructure with a unified CXM platform, We're also empowering more than 15,000 contact center agents globally to work across several channels like live chat, WhatsApp, social, SMS, email, and now voice. And we're not talking about traditional voice capabilities. With the advantage of building from the ground up on a modern digital platform like sprinklers, we've been able to reimagine what voice can be. using artificial intelligence to spot challenging conversations and changing sentiments in real time, and analyzing millions of unstructured interactions to identify the most effective responses to any issue, practically helping your worst performing agent to emulate your best performing agent at any given point in time. The other thing that's really powerful here is the fact that Sprinklr's unified agent console is integrated directly into this bank's CRM and backend systems. With that, we can eliminate the pain customers feel having to switch channels to resolve issues, and the pain agents feel in swiveling chairs between systems. These agents will also be able to leverage Sprinklr's AI and automation to drive greater efficiency with the support of chatbots, voicebots, workforce management, and IVR, all on top of an enterprise-grade platform with the security, compliance, and governance trusted by nine of the world's top 10 financial services brands. As you can see, bringing a modern mindset to a traditional capability like voice and putting it alongside the modern digital channels that consumers now use more, it's a powerful differentiator for us, and it's an area we'll continue to invest in. To that end, we've just completed the acquisition of a small company called VoiceN, an AI-powered voice-to-text analytics platform and workforce optimization platform. And we've brought on its remarkable engineering team with the domain expertise in voice to text and contact center AI as we continue to double down and build out our capabilities. With these trends and the immense innovation we're seeing in this space, modern care has quickly become one of our fastest growing and more strategic products. highlighted by a number of care deals in Q2 with brands like Samsung, Robinhood, Milwaukee Tool, Moncler, BlockFi, and SimpliSafe. Our pace of innovation has always been one of the things that set Sprinklr apart. This quarter was no different as we executed a major platform release with over 540 new features, including conversational AI, an all-new video calling option for care, usability enhancements across the platform, more out-of-the-box integrations with SAP for care and Adobe and Appremo for marketing and advertising. We also introduced modern research light, a new easy-to-use product for marketing product and PR personnel to use publicly available digital data to discover AI-powered insights about their customers, brands, and competitors, in many cases within minutes. With zero configuration required and a streamlined user interface, with pre-built dashboards for dozens of use cases, Modern Research Lite gives enterprise brands a self-service way to trial a lightweight version of Sprinklr. This is something we are very, very excited about. as it's a new way to make our comprehensive platform more approachable to companies that are not Sprinklr customers yet. When we founded Sprinklr 12 years ago, it was clear to us that we were entering a new world of business, a world where billions of consumers were moving from traditional to modern channels, a world where the data from those channels was unprecedented and unstructured. and a world where customers had new expectations for an instant and seamless experience across every channel, across every touch point, and every single time. Over the years, enterprises have spent fortunes trying to address these new realities, but they've gone about it in a piecemeal way, falling into point solution chaos and fracturing the customer experience with marketing care, research, and sales. And every team buying their own technology products to tackle small parts of the customer experience problem. Sprinklr was born to offer a new path forward, a way to listen, engage, and reach customers on the dozens of digital channels that they prefer, and each of those that will come next. A way to harness experience data using powerful AI to analyze the vast ever-expanding ocean of unstructured customer data and the automation to act on it at scale in a way to modernize customer-facing functions while enabling them to work together, providing each function with the next generation of capabilities they need built on a single code base with shared governance, workflows, analytics, automation, so everything and everyone can work together. We call it unified customer experience management. From the beginning, we set out to define this emerging new category that we believe represents one of the single most strategic investments for any modern company. And we set out to build a different kind of software company while doing it. We've always said that unified CXM is an idea whose time has come And it's never been more clear to us that time is now. To our new investors, thank you for joining us on this journey, for recognizing, like we do, that there's an inevitable and immense new category of enterprise software that's coming together, and that is only getting started. To our customers and partners, thank you for all the trust you've placed in Sprinklr through the years. Many of you, like us, saw this category coming from the beginning and pioneered it along with us to build that from the start. We wouldn't be where we are today without your support. And most of all, to our employees for waking up every day and working hard to create this wonderful company and create this category for all of us. The best is really yet to come. With that, let me turn it over to our COO, Vivek Kundra.