Sprinklr, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Sprinkler's fourth quarter and full year fiscal 2022 earnings conference call. 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 limit your questions to one so we'll have time to go through all the questions. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mr. Eric Skro, Senior Vice President of Finance for Introductory Remarks. Please go ahead, Eric.

Thank you, Diego, and welcome everyone to Sprinkler's fourth quarter and full year 2022 results financial call. Joining us today are Raji Thomas, Sprinkler's founder and CEO, and Manish Saran, Chief Financial Officer. We issued our earnings release a short time ago, filing the associated 8K with the SEC, and we've made that... available on the investor relations section of our website, along with a supplementary investor presentation. With the call, let me please turn it over to Raji.

Thank you, Eric, and hello, everyone. It is wonderful to speak with you all again. Before I get into the numbers, I want to start by welcoming Manish, our new CFO to Sprinklr. I couldn't be more excited to have him and, frankly, his track record of scaling high-growth tech companies as we continue to position Sprinklr for the next chapter of scale, growth, and efficiency. I know he's looking forward to getting to know all of you. Manish will take you through our detailed financial results in a few minutes, but I wanted to start with some of the highlights. First and foremost, I'm pleased to report another strong quarter that exceeded guidance on all metrics. That includes Q4 total revenue, which grew 30% year-over-year to $135.7 million, and subscription revenue, which climbed to $117.7 million, which is an increase of 31% year-over-year. Coming off significant reacceleration that we drove over the past four quarters, this is now our second straight quarter delivering more than 30% in revenue growth. With the strength of that execution, we finished FY22 with $492.4 million in total revenue, which is an increase of 27% year over year. And that was primarily driven by $427.7 million in subscription revenue, which is up 26% year over year. Not only have we reaccelerated growth, We're also doing it at scale with nearly half a billion dollars in revenue for the year. A combination that we believe reflects the durable multi-year growth opportunity that we see for Sprinklr and our ability to win in a massive customer experience management category that we believe is only getting started. As you know, we have four product suites. for major customer-facing functions, including customer care, research, sales, and marketing, each of which have reached significant revenue scale for us and are leading solutions in their respective areas. I want to start with an update on our suite for the CCaaS space, which we call Modern Care. We're incredibly excited about the growth we continue to see in this suite, which included multiple Q4 deals near or about a million dollar mark in ARR. Phenomenal wins with new customers like Len Scott and Vroom and expansions with big names like Uber and Honda. Customer care represents a huge opportunity for us with both the world's largest and most established companies like Samsung and L'Oreal and a new class of emerging enterprise brands like Robinhood and Uber. The reason is very clear. If you run customer care at an established global enterprise, you've likely added one point solution after another over the years with one tool for email, another one for voice, another one for live chat, one for social media, and maybe a different one for communities. Your customers are moving across these traditional and modern channels in real time seamlessly, but your teams, they can't. asking customers to share the same information over and over again, which is filed away in some siloed system. You're always reacting, struggling to solve your customers' most basic issues with software that was built 10, 20 years ago. Meanwhile, the gap between the care you deliver and what modern customers expect has only widened, driven by a new wave of new digital companies that are unencumbered by the legacy technology of the past. Our CCAS solution wins with both groups. The enterprise is building care infrastructures from the ground up. They want one platform that can do everything they need across channels. And the enterprises that have been around for decades that need a bridge from the past infrastructure to the future. Great customer care is often the foundation for great customer experience management. And because of that, it serves as a natural entry point for new customers and an obvious expansion opportunity for existing customers at Sprinklr. A great example of that and a company that continues to grow with us on the CXM journey is Uber, who started working with us back in 2014 using our social engagement and sales suite to publish brand content from hundreds of accounts across multiple countries and continents. In 2018, as Uber saw exponential growth around the world, they added 600 more seats for community managers to handle the growing volume of customer inquiries. Uber then took it to the next level, adding our second suite for customer feedback and insights. so that a new rapid response team could proactively listen for critical safety and brand issues and use Sprinklr's advanced automation engine to triage the high priority ones. Recently, Uber went live with a third suite for customer care, ramping up to more than 1,000 agents around the globe, with Sprinklr AI identifying most important of the 4 million more than 4 million inbound messages Uber receives every year. Sprintler has already saved these agents thousands of hours since launch and is helping them respond to inquiries with an industry-leading average response time of under 45 minutes. Earlier this year, we highlighted a big win with one of the world's largest banks that signaled our arrival in the CCAS space. where we beat out some of the industry's bigger players thanks to our digital-first, AI-powered approach. And we replaced 10-plus point solutions there and enabled over 15,000 agents to serve customers across channels that included voice, email, live chat, WhatsApp, social media, and text message. In Q4, we continued that momentum with another big CCaaS win, At Lenscott, one of the world's fastest e-commerce brands that originated in India. As Lenscott has grown, so too has the number of cases coming in across channels from voice to live chat to social. With Sprinklr, the company will replace four point solutions all at once, enabling thousand agents across the US, Middle East and Asia to improve agent productivity and to deliver more proactive customer care. A second place customers frequently start their journey with Sprinklr is our product suite for customer feedback and insights, which we call modern research. We saw that trend continue in Q4 with large deals from new customers like Columbia Sports Fair and BWT Alpine F1 team and significant expansions with customers like Albertsons and Twitter. Listening to customers is the perfect place for you to start if you're looking to deliver exceptional customer experiences. And the Alpine F1 team is a great example of that. The iconic racing team will implement three of our four product suites to start with, beginning with the ability to listen to fans around the world in more than 50 different languages. The real differentiator for a solution, however, is the AI that powers it. which will enable them to turn those unstructured conversations into insights that they can act on. They'll also be able to create more personalized marketing content from the insights they get while simultaneously engaging with 10 times more fans across channels in real time. Social engagement and sales is the third suite that customers often land. And this quarter was no different as we closed multiple large deals and secured amazing new logos like Jaguar Land Rover, Hawaiian Airlines, and Doc Martens, and expanded with other global brands like Pepsi and Roche. Doc Martens is a great example of how customers land with us, in this case with two product suites. Following its IPO last year, the iconic European brand, You know, they entered a new key stage of growth. And as they look forward to becoming a digital-first direct-to-consumer company with global reach, they partnered with us to support that growth, to drive efficiency, visibility, and collaboration across their customer-facing teams, bringing them onto one platform and replacing multiple point solutions in the process. With more than 9 million followers across Instagram, Facebook, TikTok, and TikTok, Doc Martens will use Sprinklr to listen to its customers and inform how and where they connect with them. They'll also be able to engage that community more effectively, managing brand content across channels and benchmarking its performance against other best-in-class brands. We continue to see strong growth in our fourth product suite for marketing and advertising as well, expanding with customers like Lululemon TSB Bank, and US Marine Corps. As one of the leading banks in the UK, TSB is a great example of a company that's already unified CXM across all four of our product suites and continues to grow with us. When they first joined us in 2019, TSB started with three of our four suites to publish brand content across channels, benchmark against competitors, and to do customer service on Twitter and Facebook messengers. In 2020, TSB added our fourth suite for marketing and advertising, enabling internal teams and agency partners to coordinate campaigns across channels and easily measure the impact of their work. In Q4, TSB expanded their use of our modern marketing and advertising even further and tripled their social engagement and sales feed, enabling more teams to benefit from the unified CXM platform that we provide. Our unmatched pace of innovation is at the core of our ability to win in each of these customer-facing functions. Last year alone, we rolled out approximately 1,600 new features, enhancements, and products, including sprinkler voice to reduce call volume with a radically different contact center model, and Sprinklr AI Studio to empower users to create and customize AI models without having to write code. As you know, we also launched our first two self-service products, something that we are very excited about in the long run, Modern Research Lite and Modern Care Lite, which makes it easier for companies that aren't yet Sprinklr customers to try our platform. especially as we expand our footprint to our second vector of growth, which is focused on companies with $100 million to $1 billion in annual revenue. Just in a few months after launching our CareLite in beta, we are already closing new customers in this second vector. One of our first is the Mauritius-based telco group, Amtel, which was looking for an easy-to-use omni-channel platform for its care team. They found it in Sprinklr CareLite, which enabled MTEL to go live on day one with seamless integration and with no hardware or software installation. Since moving to our CareLite solution, MTEL's agents have been able to stop responding natively and handle thousands of tickets across five different channels, including email, WhatsApp, live chat, Facebook and Instagram, and again, all on one platform. We continue to be super excited about the early response we're seeing with these light products and the positive impact we're seeing on demand generation. As you heard in the examples I just shared, we're seeing two clear trends, and we're seeing it again and again. The first thing we see is that every customer-facing function, from care to research to sales to marketing, they face the exact same problem. You should talk to some of our customers and talk to any brand to realize what the problem is. Point solution chaos. Every one of these teams has its own disjointed set of tools, some newer, some older, but none of it built to work together. Inevitably, the leaders of these functions We'll look to replace these point solutions and unify the functions tech stack with the modern suite that delivers the experience that today's consumers expect. And when they do, many of them are turning to Sprinklr. The second thing we see is that once one customer-facing function comes on to Sprinklr, whether it's a brand, a business unit, or a team, and They put the foundation of governance and automation and analytics and AI that comes with an enterprise unified platform like ours. The other functions and other teams and other markets and other business units tend to follow. And that's when the true power of platform comes to life in a way that no point solution can ever demonstrate. When we founded Sprinklr in 2009, We knew that the world would eventually need one platform to unify the edge of the front office where your customer meets your brand. So we built for that future from the start with a single code base. So everything and everyone can work together to listen to, engage, and reach customers on any channels that they prefer, any channel that exists today, and any platform. that is gonna eventually come in the next months and years. You've heard me say this before. Enterprises don't start with unified CXM. They arrive at it. Today, as I meet with more and more C-suite executives than ever, it's clear that the vision we had more than a decade ago is increasingly becoming a reality. with the world's largest enterprises bringing multiple customer facing teams and functions together on Sprinklr to unify customer experience management. With that, let me turn it over to Manish.