Sprinklr Sees Bright Spots Amidst Challenges in Q2 Earnings
As the tech industry continues to evolve at a breakneck pace, it's not uncommon for even the most seasoned companies to face challenges and setbacks. However, in its latest earnings report, Sprinklr has shown that despite some difficulties, the company remains committed to its mission and is making significant strides towards growth and profitability.
According to Ragy Thomas, Co-CEO of Sprinklr, Q2 total revenue grew 11% year-over-year to $197.2 million, with subscription revenue increasing by 9% to $177.9 million. The company also reported a non-GAAP operating income of $15.2 million, resulting in an 8% non-GAAP operating margin for the quarter.
While some might see this as a modest improvement, Thomas highlighted that Sprinklr's transformation efforts are ongoing and will take several quarters to materialize. Nevertheless, the company is making progress on multiple fronts, including its AI-powered unified customer experience management platform.
"We have differentiated leadership position in our core product suites," said Thomas during the earnings call. "And we're also an emerging disruptor within the CCaaS space, where our product is already top quadrant."
One of the key highlights from Q2 was the addition of several new customers and expansions with existing ones. This includes major brands such as UBS, Ford, T-Mobile, Grupo Bimbo, and Planet Fitness across all product suites. Moreover, Sprinklr has been able to deliver tangible benefits for its customers through its platform.
One notable example is a global asset manager that replaced multiple social tools and point solutions with Sprinklr's unified AI-powered platform. This will enable the company's teams to work more effectively together and provide improved customer experiences.
Another success story comes from a global EV company, which uses Sprinklr's core product suite to support their aggressive launch in multiple countries. By leveraging the platform's capabilities, this company has been able to better understand market opportunities and tailor its marketing efforts accordingly.
In terms of business results, customers deploying Sprinklr's AI capabilities have achieved remarkable success. Notably, a large North American retailer was able to increase call deflection by up to 35% using the service suite, resulting in an estimated 420,000 fewer calls handled by extensive agents each year.
A global bank also saw its customers' use of AI self-service increase to over 60%, with Sprinklr's CCaaS implementation leading to a 50% improvement in outbound virtual agent productivity. These statistics are testament to the company's innovative approach and ability to deliver tangible benefits for its clients.