Sprinklr, Inc.

Greetings and welcome to the Sprinklr Q3 fiscal year 2025 earnings call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Eric Skro, VP Finance. Thank you, Eric. You may begin.

Thank you, Alicia, and welcome everyone to Sprinkler's third quarter fiscal year 2025 financial results call. Joining us today are Rory Reed, Sprinkler's president and CEO, and Manish Sareen, chief financial officer. We issued our earnings release a short time ago, filed the related form 8K with the SEC, and we've made them available on the investor relations section of our website, along with the supplementary investor presentation. Please note that on today's call, management will refer to certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. You are directed to our press release and supplementary investor presentation for a reconciliation of such measures to GAAP. In addition, during today's call, we'll be making some forward-looking statements about the business and about the financial results of Sprinklr that may involve many assumptions, risks and uncertainties, including our guidance for the fourth fiscal quarter and full fiscal year of 2025, the impact of our corporate strategies and changes to our leadership, the benefits of our platform and our market opportunity. Our actual results might differ materially from such forward-looking statements. 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 our filings with the SEC, also posted on our website, including Sprinklr's quarterly report on Form 10-Q for the quarter ended October 31, 2024. With that, I'll now turn it over to Rory.

Thank you, Eric, and hello, everyone. It's nice to be with you today. I'd like to start by providing a few 3Q financial highlights before covering some of my thoughts on the business. 3Q total revenue grew 8% year over year to $200.7 million, and subscription revenue grew 6% year over year to $180.6 million. We generated $23.3 million in non-GAAP operating income, which resulted in a 12% non-GAAP operating margin for the quarter. I wanted to thank Sprinklr team members around the globe and our customers and partners for trusting us to help them solve some of their most important business needs. Manish will provide further financial details in his remarks a little bit later. Given that this is our first earnings call following my appointment as president and CEO, I would like to share some observations based on my initial 30 days here at Sprinklr. First, I'm delighted to join the Sprinklr team at this important time in our journey. I'd also like to thank Raji and the board for this opportunity. I have long admired what Sprinklr has built. And I chose to join the Sprinklr team because of the powerful combination of industry-leading technology, an incredible roster of customers and partners, and a passionate team focused on helping those customers to win. We also operate in very attractive markets with a large TAM and a strong product market fit. I have spent four decades building and transforming global technology companies to improve operational efficiency, accelerate innovation, and drive durable, profitable growth. I intend to do the same together with our team here at Sprinklr. Since joining Sprinklr last month, I've spent a lot of time listening and learning about where we are today and what we need to do differently moving forward. I have spoken to hundreds of team members around the world, along with dozens of customers and business partners. What I know for certain is that we have significant strengths to build upon. We also have challenges to address, and we intend to address them. Sprinklr was built from the ground up as a unified AI-powered platform to help brands access insights to strengthen their customer relationships, improve operational efficiency, and achieve their business objectives. We believe the attributes of our platform allow us to uniquely empower our customers to better understand, engage, and serve their customers by delivering unified experiences. Our customers are leveraging our platform to solve some of their most important business challenges. We believe the next generation of unified customer experience management leads to a 360 degree immersive customer engagement across multiple vectors of experiences, including discovery, conversational commerce, support and service, We have grown our customer base to well over 1,800 customers today, of which nearly 150 are million-dollar-plus customers. This demonstrates that when we execute well, our customers find true value in using our platform across all our product suites. This gives us confidence that Sprinklr can be the ultimate disruptor in changing the way customer experience is delivered within every industry across the globe. Our objective is to deliver durable, profitable, and efficient growth. However, as we have discussed on previous calls, the transformation we are navigating will take some time. We are confident in our ambidextrous strategy to re-energize and grow our sprinkler core while hardening and expanding sprinkler service, thus enabling our customers to realize the full value of our platform. As I have acknowledged, there are still challenges ahead as we strengthen our teams, refine our processes, and tackle the operational debt that has hindered us over the past year. Challenges we are working to address include re-energizing our growth engine while reducing churn, simplifying and focusing our offerings so we can consistently implement and deliver outstanding customer experiences to more customers around the world, tailoring and streamlining our go-to-market structure to focus on expanding our roster of world-leading organizations. Financially, our overarching goal is to become a Rule of 40 company. Today, we're operating below 20% on the Rule of 40. This is simply not acceptable. We intend to reach this goal through a combination of faster top-line growth and substantial operating margin expansion. We intend to drive material progress on margins by improving our efficiency, reducing our cost base and strategically investing for growth. Our sales and marketing efficiency needs to improve. We intend to be more targeted with our R&D projects and will continue to work to tighten on the G&A side as well. We will aim to rebalance investments and resources to areas where we have a competitive advantage and where we have a disproportional ability to win. We will cover the details of these actions when we provide a more comprehensive operational plan and our official financial guidance for FY26 on our 4Q earnings call, which is expected to be scheduled in late March. In closing, I'm excited about the opportunity ahead for Sprinklr. We are a leader in a large and growing market that is helping to define how enterprises engage with their customers in an AI digital-first world. Our unified AI-powered platform provides a differentiated value proposition for the world's most iconic and leading brands. I believe we can support faster, long-term, durable growth with improved margin expansion. Of course, it will take some time to develop and execute our go-forward strategy, but we are committed to being open and transparent so you can understand the progress we are making before it is realized in our financials. I look forward to meeting and speaking with many of you in the weeks and months ahead. Now I'd like to turn the call over to Manish so he can go through the numbers in more detail. Manish?