Sprinklr, Inc. Q4 FY2026 earnings call

• Fourth quarter total revenue grew 9% year-over-year to $220.6 million, subscription revenue grew 6% to $193.4 million, and non-GAAP operating income was $37.7 million with 17% margin.
• FY26 was a year of meaningful operational progress, with optimization of cost structure, revamping of go-to-market model, etc.
• In transition phase 2, embedding last year's changes for scale and efficiency, moving to phase 3 acceleration in FY28.
• Key innovation priorities: unified customer intelligence, enterprise-wide automation, AI-driven marketing and commerce, next-generation AI and insights.
• Examples of customer wins: partnership with global payments company and deepened partnership with U.S. telecommunication provider.

Fourth quarter total revenue grew 9% year-over-year to $220.6 million, subscription revenue grew 6% to $193.4 million, and non-GAAP operating income was $37.7 million with a 17% non-GAAP operating margin. For FY26, total revenue was $857.2 million, up 8% year-over-year; subscription revenue was $756.3 million, up 5%; professional services revenue was $109 million, up 29%; non-GAAP operating income was $146.2 million with a 17% non-GAAP operating margin.

• Q1 2027: Total revenue expected $215.5 - $216.5 million (5% growth y-o-y midpoint), subscription revenue $193 - $194 million (5% growth y-o-y midpoint), professional services revenue $22.5 million; non-GAAP operating income $28.5 - $29.5 million.
• FY27: Subscription renewals expected $778 - $780 million (3% growth y-o-y midpoint), total revenue $869 - $871 million (1% growth y-o-y midpoint), non-GAAP operating income $144 - $146 million, free cash flow expected $150 million.

• Forward-looking statements involve assumptions, risks and uncertainties, actual results may differ materially.
• Risks associated with forward-looking statements detailed in SEC filings.

• Q: Anthony, would you frame the full-year margin guide as conservative?

A: Tried to be prudent and disciplined, with latitude for strategic investments to drive long-term growth.

• Q: Could you break out internationally versus U.S. revenue percentage?

A: About 50-55% for America, 35+% for Europe, ~10% for Asia APJI, Middle East in upper middle with meaningful business.

• Q: Is elevated churn expected to continue in FY27?

A: Renewal rates improved in 4Q and expected to improve in 1Q and 2Q, intensely focused on bear-hugging top customers.

• Q: What are plans for increasing margin day to day?

A: Revenue mix, monitoring headcount, investing in innovation and go-to-market capabilities with strong expense discipline.

• Q: When will acceleration phase look like?

A: Begins with more ramped AEs, investing in innovation and forward deployed engineers, with progress seen in customer feedback.

• Q: Talk about services next year?

A: Build ecosystem with partners, services revenue expected to lower as bear-hug progress made, still a value enabler.

• Q: Thoughts on million-dollar-plus customer cohort and AI?

A: Lagging indicator, quality and traction important; AI growth from contextual data usage, competing with external vendors and DIY initiatives.