Ragy Thomas: I don’t think it’s any more complex than what you articulate. At the end of the day, if you leave the professional services line item aside, subscription business, it’s all driven by the strength in the renewal business. When we do have multi-year renewals, we call it out. And that shows up in our view, like it did this time, and it’s all driven by the linearity within the quarter. So we have been seeing stronger linearity for the last couple of quarters than what we had modeled, which is part of the reason you’re seeing strength in in the beat in the quarter. And that’s giving us more confidence as we look out over the next two quarters. And I think that’s captured in the guide.
Operator: Our next question comes from the line of Tyler Radke with Citi.
Tyler Radke: I wanted to just hear how you’re seeing things trend so far in Q3. Sounded like some really good execution in the quarter on the renewals and the large eight figure transaction, but it seems kind of inconsistent in Q3 versus Q2. What do you just kind of expected in terms of the large deal potential in the second half?
Ragy Thomas: Well, I’ll take the first part of it and maybe Manish can talk about the next quarter. Look, the macroenvironment is just about as uncertain as it was. And it has been. So, we’re not seeing any different behavior this quarter or last quarter than we saw before. But just to tie it, there’s CFO scrutiny and all the good things that come with people being not very sure where the markets going, right, and interest rates are going to be. But I think what you’re seeing is, like, a consistent trickling impact of our better execution and focus on go to market.
Manish Sarin: Just to make sure I understand. Was your question, Tyler, are we seeing anything different in the month or so of Q3 that we’ve been in compared to Q2? Was that what you were trying to ask?
Tyler Radke: Yeah, sorry. I guess I’ll rephrase the question slightly to make it more specific. And apologies for the background noise. But, really, the question was, you saw some really good large deal activity in Q2. I know there’s been a lot of noise around RPO and current RPO because of the multi-year renewal cycle. So I’m just curious if there’s any things to call out in terms of RPO volatility and just how your overall large deals, you’re expecting those to land in Q3, Q4, just anything that would be noteworthy to call out as we’re building our models.
Manish Sarin: Thank you for that clarification, Tyler. But there’s nothing that I would call out at this stage. As I look at the quantum of business that we’re booking, it sort of seems in line with what we would expect. Like any enterprise software company, we’re pretty back-end loaded. So I wouldn’t make any broad assumptions around how Q3 and Q4 would land. But there is nothing that we are seeing today that would give us any cause for concern. It’s sort of along the lines of what we would expect. So steady is what I would say.
Operator: Our next question comes from the line of Austin Cole with JMP Securities.
Austin Cole: I’m wondering, if you just kind of look back on this more recent AI wave we’ve seen over the last six months or so and you say that generative AI has given your proprietary AI wings, do you think that the kind of more recent excitement around AI has accelerated and boosted Sprinklr’s AI efforts or put more pressure on Sprinklr kind of competitively overall? Over the long term, do you see some of this – to what degree is this going to be table stakes and then how is Sprinklr thinking about being really differentiated over the long term?
Ragy Thomas: To answer your question, look, I think there’s a lot of hype and excitement and we’ve all seen this movie many times. Usually, the hype always settles and then the real deal starts. What we’re finding ourselves is having this blessed opportunity of being able to now talk about AI and have people appreciate it. And the awareness that our customers and the buyers have, our buyer personas now have of the power of what AI can do. And that makes articulation of our capabilities and our differentiators much easier than it used to be. So net-net, we’re seeing positive impact on deals with the excitement around AI. Our strategy has not been to introduce a new AI product or to have a new AI feature because, for the last five years, we’ve bet the farm on the idea that we are the purveyors of unstructured conversational data.
And there is no way to read and understand and speak back in over 100 languages to billions of people without using AI. So we think it is table stakes. We think there are different approaches to jumping on the AI wave. And one approach is to say, look, this is going to change everything. We’re going to go into a DNA and make sure that it’s AI powered. And that’s how we think. The other one is to say that there’s an opportunity for some incremental dollars or a new product. We’ve taken the former. We stand by it.
Operator: [Operator Instructions]. Our next question comes from the line of Matt VanVliet with BTIG.
Matt VanVliet: I guess as you look at the contact center opportunity and really broadening it to obviously all of service. How much is that still being driven by high demand from the social media side and that sort of the entryway in and the knowledge of Sprinklr and all that you can handle versus seeing sort of net new landing opportunities that are more of a pure play, like-for-like replacement of an existing contact center out there?
Ragy Thomas: Matt, excellent question. I’m glad you asked it. We are doing more of real contact center RFPs and proving ourselves to be complete unified replacement solutions for legacy players more so in the last two quarters than we’ve ever done before. So we’re kind of kind of coming into our own as a disrupter with the ability to kind of show value out of the gate. That was not true, I’d say, maybe two quarters ago. That was kind of sort of beginning to play out a quarter ago. And last quarter, many of our deals which is independent voice solutions doing an RFP, comparing us to the top five players in that space and choosing us. So, increasingly so, they are seeing us as a pure CCaaS unified solution as opposed to somebody with social and who can expand to do other things.
Matt VanVliet: Just quickly on some of the growing SI partnerships you’ve had out there, as they look at this broader portfolio of products that they can go in and help customers really make traditional transformations, anything you’re doing on your end to even, I guess, place a greater emphasis on those partners really leaning into the entire sort of go-to-market there that you call out for us. Or maybe it’s on the horizon that could accelerate that business even more.
Ragy Thomas: We have been investing in our partnerships, generally, and specifically, a lot more on the CCaaS side. So, companies like Accenture, like Tech Mahindra who are established players in the contact center space see this as an opportunity to take the partnership to the next level. I’ve got to admit, though. It’s very early for us, right? We’re a disruptor. We’re building a different kind of – we’re taking a different approach of unifying it. So there’s a lot of innovation and a lot of sort of velocity in the change that’s happening. So it is going to take us a few more quarters to really even get to documenting everything and enabling the partners. It’s very much underway, but I wouldn’t count on any of the results.
Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.
Ragy Thomas: Well, thank you, Doug. And thank you all for joining us today. Again, I’d like to thank our employees, our partners and, most importantly, our customers for their trust and continued business. We look forward to updating you all again soon as we continue this exciting journey of creating a new category that we call unified customer experience management and building an enterprise software company we hope our customers love. Thank you very much and have a good evening. Thank you.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
