Sprinklr, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to Sprinkler's first quarter fiscal year 2023 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 Skrull, Vice President of Finance, for introductory remarks. Please go ahead, Eric.

Thank you, Shamali, and welcome everyone to Sprinkler's first quarter fiscal year 2023 earnings call. Joining us today are Raji Thomas, Sprinkler's founder and CEO, and Manish Saran, Sprinkler's 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 the supplementary investor presentation. With that, let me turn the call over to Raji.

Thank you, Eric, and hello, everyone. Thank you for joining us today as we share the results of our first quarter in FY23. I'll get us started with highlights, including what I'm hearing from customers and some of our key wins. Manish will then share details of our financial results. I am very pleased to report that Q1 was another strong quarter that exceeded guidance. Q1 total revenue grew 31% year-over-year to $145 million, and subscription revenue climbed to 127.3 million, an increase of 32% year-over-year. Coming off a strong finish to our FY22, this is now our third straight quarter, delivering more than 30% in total revenue growth. We continue to believe that there is a durable long-term growth opportunity for Sprinklr to lead the unified customer experience management category that we believe is still just getting started. Before diving into details, let me take a moment to welcome our new CMO, Arun Pattabhiraman, to Sprinklr. As you saw in our announcement in May, Arun joins us from Freshworks, where he served as the chief growth officer of the company. He brings extensive experience in marketing hyper-growth SaaS companies, and we're excited about his ability to position Sprinklr for our next phase of growth. In Q1, I had the privilege and opportunity to sit down face-to-face with over 100 of our top customers and over 75 of our top customer-facing sprinklerites. The message we're hearing is remarkably consistent. Again, large global companies are all focused on creating great customer experiences across channels. But in today's environment, they're also trying to reduce cost, mitigate risk, and convert legacy cost centers to profit centers. Marketing and care have evolved dramatically in a short period of time. We're seeing the volume of customer interaction shift to new channels like live chat and messaging like never before. Customers are demanding personalized human interactions across what used to be siloed internal departments. And that's what a unifying customer-facing platform that can bring functions together from care to marketing can do with an AI-powered architecture behind it. We are starting to see brands move their customer care to Sprinklr because our vision for customer service is different from that of traditional care vendors. They're buying into our vision that care can be proactive. Care can be omni-channel and care can be unified across markets. And it can and it should transition from a cost center to potentially a profit center. They're also buying into our vision that everything starts by listening to the customer first, not just episodically with the survey, but in real time. customers using Sprinklr are now able to understand what their customers like and dislike and what they want and they don't want. And they're now using this information to make products better, optimize their marketing content and campaigns, reduce the number of customer service calls they get, and get an early warning on potential crises. And to do all of that in a consumer privacy first, secure and compliant enterprise platform. As we look across our customer base and analyze what they're doing with our platform, we're now able to see revenue generating, cost reducing and risk mitigating solutions emerge consistently in every industry from technology to financial services. And that makes Sprinklr an increasingly business-critical part of many of our customers' global front office IT architecture. Let me now share with you some exciting innovation across our product suite, along with some customer wins and why they chose Sprinklr. As a reminder, we have four product suites that support brands' major customer-facing functions, and they are customer care, research, engagement and sales and marketing and advertising suites, each of which has significant revenue scale currently. In modern care, we enhance several key features this quarter. Our improved knowledge base capability now allow customers to find quick answers before engaging with a live agent. Our improved guided workflows enable newer agents to be as productive as the top agents by simplifying the entire troubleshooting process with easy step-by-step process flows. And our advanced contact center intelligence now has real-time speech analytics for in-depth insights and a single source of truth for understanding CSAT sentiment and escalations for complete performance visibility. Customers want to modernize their contact centers with AI and they want to convert them into proactive and potentially revenue generating customer expedient centers. These are some of the reasons we secured exciting wins in our customer care product suite this quarter with new customers like Mercedes-Benz and Aramex and had expansions with existing customers like Applebee's and Starhub's and Grupo Bimbo. Let's use Grupo Bimbo as an example. One of the largest food companies in the world that's headquartered in Mexico City. Grupo Bimbo currently use all our four product suites. having implemented social engagement and sales first, modern research, and then modern marketing and advertising. Originally, when they got started, our AI was helping them gain powerful insights into organic and paid ad performance and was giving them competitive insights on more than 400 of their competitors. In Q1, they expanded into our modern care suite with our CCAS solution. And they did that to improve agent productivity, to unify customer experiences across digital channels, and to deliver a more proactive care to customers as they themselves continue to expand across Latin America and Mexico, Colombia, Chile, and Peru. in line with our stated strategy of innovating and expanding with partners in q1 we also announced integrations with amazon and twilio enabling customers of those great companies to take advantage of our modern care suite in modern research we launch conversation insights the ability to cluster conversations from public digital data that's legally available using ai and to surface brand insights that otherwise may never have been discovered. Customers like PepsiCo are using our conversation insights to inform strategies like sustainable packaging. We also announce enhancements in our media monitoring and analytics module, including new premium data partners like NLA Media Access and Financial Times. Conversation Insights help PR and corporate communication leaders to better understand their digital audience in real time, and it allows them to optimize their messaging. We help them and other marketers to facilitate data-driven decisions across organic, paid, and advocacy marketing. Across the suite, we had several expansions in Q1 with customers like Diageo and Kodi. in our social engagement and sales suite, we announced an official partnership in the all new TikTok content marketing specialty. Sprinklr is now the only TikTok marketing partner with a platform capable of helping marketers manage and execute and optimize both organic and paid content campaigns on TikTok. We also further extended the portfolio of modern channels so customers can now monitor, engage, and grow their communities on Discord. which supports voice, video, and text with 150 million active users. Our channel relationships and differentiated features like customizable reporting, cross-silo workflows, and cross-channel customer conversations are what help to secure new customers like ASOS and expand with brands like cross-country mod gauge, Paxco, Nobel, Discwater. And finally, in our marketing and advertising suite, we launched our proprietary creative performance framework. By leveraging AI, our customers can now identify and easily build and duplicate creative assets across channels. We also invested in dynamic image templates, which allow customers to use system generated insights to automatically build several versions of content without investing additional production dollars. In marketing and advertising, we saw continued momentum with brands like UBS, Ubisoft, Garmin, TransUnion, and Puma. These customers and others choose Sprinklr for our ability to unify workflows across global teams and optimize paid social media performance across channels using artificial intelligence. or an unmatched pace of innovation is at the core of our ability to win new customers. In Q1, we released approximately 600 new and unique platform features based on customer requests and added new language options in our AI studio, allowing organizations to participate and expand their global listening capabilities. We also added new conversational AI integration demonstrating our platform's openness and extensibility. Our self-service products that we launched a few quarters ago are seeing great momentum as well. Modern care light, which is a newer one, and modern research light products continue to drive trials and generate demand for the broader platform. When we founded Sprinklr in 2009, we knew the world would eventually need a unifying platform and operating system to manage the extended digital edge for every customer-facing team. And that is what we've been building. And that's what we will continue to build. As I reflect on our upcoming one-year anniversary as a public company, it's almost a year now, I think about the unique 13-year advantage we have in helping brands listen to, reach, and engage customers on the ever-expanding channels of their choices. We've also innovated and grown with our customers, providing them with a different path to deliver the next generation of digital customer-facing functions. One that doesn't just let them catch up to the present, but also future-proves them in our rapidly changing world. With that, let me now turn the call over to Manish.