Sprinklr, Inc. Q4 FY2025 earnings call

• Rory Read started by highlighting 4Q financials: total revenue grew 4% y-o-y to $202.5M, subscription revenue grew 3% y-o-y to $182.1M, non-GAAP operating income was $25.9M (13% margin). - Discussed the ambidextrous strategy, implemented BMS to track execution, optimized expense base (15% workforce reduction), redefined go-to-market, strengthened leadership (e.g., Joy Corso as CAO, new board members). - Mentioned customer examples like Delta Airlines, Ford Motor Company, etc. - Manish Sarin went into detail on numbers: total revenue $202.5M, subscription revenue $182.1M, professional services $20.5M, net dollar expansion rate 104%, 149 customers with >$1M, non-GAAP gross margin 71%, free cash flow $1.5M, RPO $987.7M.

For the fourth quarter, total revenue was $202.5 million, up 4% year-over-year. Subscription revenue was $182.1 million, up 3% year-over-year, and professional services came in at $20.5 million. The subscription revenue based net dollar expansion rate in the fourth quarter was 104%. At the end of the fourth quarter, there were 149 customers contributing $1 million or more in subscription revenue over the preceding 12 months, which is an 18% increase year-over-year. On a non-GAAP basis, subscription gross margin was 79% and professional services gross margin was break even, resulting in a total non-GAAP gross margin of 71%.

• Q1 FY26: Total revenue expected to be $201.5M-$202.5M (3% y-o-y growth), subscription revenue $182M-$183M, non-GAAP operating income $31.5M-$32.5M. - FY26: Subscription revenue expected $741M-$743M (3% y-o-y growth), total revenue $821.5M-$823.5M (3% y-o-y growth), non-GAAP operating income $129M-$131M, free cash flow margin 15% ($120M free cash flow).

• Macro economic uncertainty could lead to customer spending prudence. - Need for consistent execution and implementation to maintain customer satisfaction and renewals.

Q: Pinjalim Bora from JPMorgan asked about avenues driving cost efficiency and if it sacrifices growth.

A: Rory Read said they focused on making the business efficient, freed up dollars to invest in talent, product innovation, etc., and didn't sacrifice growth.

Q: Arjun Bhatia from William Blair asked about focusing go-to-market on new vs existing customers.

A: Rory Read said tactically focus on solidifying and expanding the base, with 70/30 slant towards base now.

Q: Elizabeth Porter from Morgan Stanley asked about reinvestment in hiring.

A: Rory Read said hiring in late 2Q, early 3Q for FY27, focusing on ramping reps.

Q: Patrick Walravens from Citizens JMP asked about federal government business.

A: Rory Read said federal business is very small and not material.

Q: Jackson Ader from KeyBanc Capital Markets asked about bookings activity and pipeline.

A: Rory Read said 4Q bookings stronger than expected, watching go-to-market changes in 1Q and 2Q.

Q: Parker Lane from Stifel asked about technical debt.

A: Rory Read said working on roadmaps for platform towers, improving product introduction, telephony, reporting, security, etc., in FY26.