Q2 2026 Sprinklr Inc Earnings Call Transcript
Key Points
- Sprinklr Inc (CXM) reported an 8% year-over-year increase in total revenue, reaching $212 million, with subscription revenue growing by 6% to $188.5 million.
- The company achieved a record $38.2 million in non-GAAP operating income, resulting in an 18% non-GAAP operating margin for the quarter.
- Sprinklr Inc (CXM) is making significant investments in AI functionality, marketing insights, and CCaaS products to enhance its platform and meet customer needs.
- The company has launched Project Bearhug to engage deeply with its top 700 customers, representing over 80% of total revenue, to minimize churn and improve customer relationships.
- Sprinklr Inc (CXM) has hired experienced executives, including a new Head of Global Services and Support and a Chief Revenue Officer, to strengthen its leadership team and drive growth.
- Sprinklr Inc (CXM) is experiencing downward pressure on renewals, with ongoing elevated customer churn and downsell activity impacting subscription revenue growth.
- The company is facing challenges with longer sales cycles and increased scrutiny of enterprise spending, affecting its renewal cycle and operational execution.
- There is a noted increase in cloud hosting costs due to the strong uptake of AI products, which is expected to pressure gross margins in the second half of the year.
- Sprinklr Inc (CXM) is undergoing a transitional year with anticipated near-term challenges as it implements strategic and operational changes to address past execution issues.
- The departure of CFO Manish Sarin and the interim assumption of financial responsibilities by the CEO may create temporary uncertainty in the financial leadership of the company.
Greetings. Welcome to Sprinklr second-quarter fiscal year 2026 earnings call. (Operator Instructions)
Please note, this conference is being recorded. I will now turn the conference over to Eric Scro, Head of Investor Relations.
Thank you, operator, and welcome, everyone, to Sprinkler second-quarter fiscal year 2026 financial results call. Joining us today are Rory Read, Sprinklers President and CEO; and Manish Sarin, Sprinklr Chief Financial Officer.
We issued our earnings release a short time ago filed the related Form 8-K 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
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