Sprinklr (CXM) 4 Sep 24 2025 Q2 Earnings call transcript

Sprinklr, a leading provider of unified customer experience management solutions, recently held its second quarter fiscal year 2025 earnings call, revealing a mixed bag of results and strategic plans. Here are the key takeaways from the call, focusing on the themes and trends that emerged.

Financial Performance and Strategic Shifts

Sprinklr reported an 11% year-over-year increase in total revenue to $197.2 million, with subscription revenue growing 9% to $177.9 million. However, the company faced challenges in its core suites, experiencing pressure on renewals due to tightening customer budgets and ineffective renewal processes. To address these issues, Sprinklr is rebalancing its focus, sharpening its strategic execution, and investing in its leadership and product offerings.

Customer Success Stories and Innovation

Despite the challenges, Sprinklr highlighted several success stories, including the acquisition of new customers like UBS, Ford, T-Mobile, Grupo Bimbo, and Planet Fitness, across all product suites. These wins underscore the value and differentiation of Sprinklr's platform, particularly in the CCaaS space, where it has emerged as a disruptor. The company's AI-powered capabilities have also shown impressive results, with one North American retailer achieving a 35% increase in call deflection and a large global bank seeing a 60% increase in customer self-service usage.

Competitive Landscape and Future Outlook

Sprinklr's strategic focus on its core suites and CCaaS offerings, along with its investment in leadership and execution, positions the company well for future growth. However, the competitive landscape in the customer experience management space remains intense, with other players vying for market share and customer attention. Sprinklr's ability to differentiate itself through its AI-powered solutions and unified customer experience management platform will be crucial in navigating this competitive landscape.

Investor and Analyst Insights

During the call, analysts probed Sprinklr on topics ranging from pricing pressure and market dynamics to operational execution and future guidance. These interactions offered valuable insights into the market's perception of Sprinklr's performance and prospects. The company's transparency and candid responses to these questions underscored its commitment to open communication with investors and stakeholders.

In conclusion, Sprinklr's second quarter fiscal year 2025 earnings call provided a comprehensive overview of the company's financial performance, strategic direction, and operational challenges. With a focus on its core strengths and a commitment to innovation and execution, Sprinklr is well-positioned to navigate the competitive landscape and drive long-term growth.