Matthew Kikkert: This is Matthew Kikkert on for Parker. Thanks for taking my questions. You mentioned Accenture briefly, and I wanted to double click on that a little bit. What impact has that partnership with Accenture had on any new business generation so far? And what excites you most about that opportunity?
Ragy Thomas: That’s been a longstanding partnership, Matthew. So Accenture has been a great partner for us. And I’d say pretty steady the shift that we are trying to bring about with Accenture and our other partners is, they’ve been great deal influences. And what I’m excited is to really begin to transform the partners that we have and the partners we are now adding to the roster and transform them into deal sources, especially in the contact center spaces that’s a big deal. So we’re bullish on all the partnership. I think the market is beginning to take shape. You see this concept of bringing marketing and care and sales and advertising altogether that’s €“ it is just very new. I mean, we’ve done it with CRM companies, but that was mostly through acquisition and mostly focused on data and backend.
Bringing together the marketing employee and the contact center agent and the person running ads and all of that is just very new at the edge of the brand as we call it. So I think the partner ecosystem will continue to evolve and we are very excited about how it can do.
Matthew Kikkert: Okay. Got it. And then secondly, you touched on the macro quickly, you have a great guide, but is there any one particular business that you’ve seen maybe some deal scrutiny or elongation of sales cycles?
Ragy Thomas: Look, not getting worse, not getting better is the way I would characterize it. So we €“ what we saw in third quarter is what we saw in fourth quarter, and that’s how we generally feeling, many of the macro situations haven’t improved or deteriorated substantially, so it’s kind of more the same.
Matthew Kikkert: Okay. Terrific. Thank you very much.
Ragy Thomas: Thank you.
Operator: Thank you. Next question is coming from Elizabeth Porter from Morgan Stanley. Your line is now live.
Elizabeth Porter: Great. Thank you. I wanted to double click on some of the changes to making it easier to sell Sprinklr, and a lot of the ones that you highlighted were more around the outbound sales motion, but I was hoping to get some color on the changes that you’ve seen to be inbound demand as a result of having light and self-service. And should we expect the change of outbound and inbound the mix of those two to change over time? And is there a longer-term implication to margin just from growing the inbound channel? Thank you.
Ragy Thomas: Elizabeth, long-term, yes, in the short-term, that’s not baked into any of our guide, and we’re not €“ these changes take time and we’re kind of doing everything inside out for better or worse. So the marketing team has been very productive and very busy. And our self-service products again like we said is not really an attempt, not yet an attempt to expand our target tool, right? So this is just again designed around eliminating friction. So I wouldn’t model anything in the next one, two, three quarters. And then once we have more visibility, we will articulate how we think that’s going to impact margins.
Elizabeth Porter: Great. And then just as a follow-up on the macro, it’s great to hear that there’s some stabilization from Q3 into Q4. Is it a similar trend that you’re seeing thus far into Q1 now that it’s largely behind us? And does having €“ I just wanted to kind of give you perspective, but do customers having a better visibility on 2023 budgets, is that an opportunity to help shorten some of the sales cycles, which really started to elongate at the end of 2022? Thanks.
Ragy Thomas: Yes. Elizabeth, I would say like Q1 always kind of backend loaded, right? As you can imagine, people coming back from holidays and as a company, we do our sales kickoff and a lot of internal planning, budgeting gets finalized, territories assigned and all of that. So I’d say it’s €“ I don’t have enough data to give you any meaningful color, but we’re not seeing any indications of things changing that much from Q4.
Elizabeth Porter: Got it. Thank you.
Ragy Thomas: Thank you.
Operator: Thank you. Next question is coming from Tyler Radke from Citi. Your line is now live.
Tyler Radke: Yes. Thank you. And hi, Ragy. Wanted to ask you about just contact center, you talked about some interesting milestones on the seat count and the recognition in some of the Gartner Magic Quadrants,which is great to see. Wondering if you could just kind of contextualize that a bit more, just in terms of how big of a mix of that in your business it is today and what you’re seeing in the pipeline and is that an area that you’re really leaning into in terms of hiring specialists just given that that’s a bit of a different market than where traditionally Sprinklr is focus? Thank you.
Ragy Thomas: Yes. So I can confirm that it is a big focus for the company. In fact, internally, we said this is the year of our contact center business. I can confirm that this is something that was very intentional and we have been doing steadily for the last several quarters and say for the last probably even 18 months. So we have been hiring people from traditional contact center companies. We have €“ we built €“ we’re building out and have built out a team of dedicated specialists. So it’s very important to have that domain knowledge and vocabulary in addition to the technology. So we have staffed everything from the product organization to the sales organization and support organization with people who have been doing it in some cases for like 20, 25 years who are also equally elated to see a very modern approach to this whole space.
Tyler Radke: And how big is it? Is the percentage of we did revenue?
Ragy Thomas: Yes. We did talk about that being 40% of our bookings for last quarter. I can confirm that it’s a material part and increasingly becoming more and more material, I think Manish is planning to break out. We’ll probably start talking about the product suite in our Analyst Day. But it is a big part and a pretty high growth part of our business.
Tyler Radke: Great. And just to follow-up on, as you think about just the opportunity in the €“ I guess, generative AI, you talked about the contact center product in terms of integrations there. Could you just help us understand like how much of the success you’re seeing in contact center? Are you leading with that product more or is it €“ is this kind of a traditional replacement of CCaaS and then you’re layering in generative AI on top of that? Thank you.
Ragy Thomas: So I want to make a difference between generative AI and AI. So the reason we have been disrupting the market is primarily threefold. One is the traditional contact center vendors are voice first companies, bulk of them, they’re R&D and their legacies in that voice endpoint management, which now is sadly being commoditized. Our origin founding story is truly omni-channel. So ability to hot switch between channels while you’re on a case resolution, right? That’s just a very powerful thing. So truly omni-channel number one. Number two is actually AI everywhere. Now that’s the sudden rise of ChatGPT. Every part of Sprinklr, especially the contact center product is AI based from routing to skill assessment to smart assist where we are suggesting responses.
There’s a lot of AI and that’s been €“ that’s how we can clearly demonstrate called resolution, time reduction, first response and all of that. So AI has been a big differentiator. Now we are going to obviously add ChatGPT and OpenAI products and make it even better, but reason people score us very high is because AI is not an afterthought and you don’t have to go buy another AI vendor to do AI inside the contact center. It’s all part of this integrated suite. And lastly is our ability to bring service alongside €“ marketing and sales alongside service, right, at HDFC. The beauty of the model is the outbound tele sales teams is on the same platform, is in inbound voice response team. So you could be a customer calling in with a problem with your credit card and seamlessly now somebody can just come in and talk to you about a different card.
It’s not no longer a secondary peripheral thought for a contact center agent, but it’s something that they can work together seamlessly on to grow revenue.
Tyler Radke: Great. Thank you.
Operator: Thank you. Our next question is coming from Michael Turrin of Wells Fargo. Your line is now live.
