Software company Sprinklr, which works with some of the world's biggest brands in business, saw shares jump after posting strong quarterly earnings. Ragy Thomas, CEO and founder of Sprinklr joined Cheddar News to talk about the recent quarter. “Everyone's looking to digitally transform their front office or customer-facing functions to provide better customer experience and that's where we play,” he said.

Closing Bell

Sprinklr Tops Wall Street Estimates

Welcome back to closing bell and cheddar news. Everyone among the earnings released thursday were second quarter results for sprinkler customer experience, software developer surpassing Wall Street expectations, both on the top and the bottom lines sending the stock higher. So for more, I'm joined now by Raji thomas founder and ceo of sprinkler Raji, thanks so much for coming on. Congratulations on a strong quarter. What was working for you here in the second quarter? Thank you christian a lot of stuff is working well for us. I think we are seeing increase in strong, consistent demand from our large global customers from around the world. You know, we're going through a lot of macroeconomic uncertainty and all customers that we talked to um in banking and technology and manufacturing CPG across the board. They're trying to get closer to customers and understand in a changing environment what they value and they're looking for ways to save money and do better customer service and make their ad dollars. And there marketing dollars work harder on marketing And those are all things that we do really well because we are a platform that provides unified customer facing functions across all customer facing functions. We were showing a full screen there Raji of some of the companies using your customer service software solutions, Major Names, Micros, Loreal, Cisco Capital one Samsung. Just to name a few here at the top of this full screen um in this pandemic that is still bumpy I think in terms of the consumer experience, certainly the supply chain as well. What are some of the top customer service needs that you have found over these past 2.5 years and certainly of late what we're seeing that sprinkler is quickly becoming the third or fourth large platform alongside companies like Salesforce and Adobe, that brands are deploying in their customer facing functions in their front office. And what we're able to do is be a part of their digital transformation of where the customer meets the brand. Let me give you a quick Example Loreal. One of our customers just expanded last quarter and what they are trying to do is do what they were doing in traditional channels like in the store, you would walk in and you would see somebody help you with their beauty makeover and then you can go buy their products now, what do you do? What is the digital equivalent of it? And they're trying to get 50 percent of the revenue come from digital in a short period of time, both through direct to consumer and e commerce partners. And so they are they are powering up virtual beauty advices who can get on the phone or on video with you and can help you try the cosmetics on and then buy and that's conversational commerce. That's completely power in this inflationary environment. Has that impacted your business at all Raji? Well we're seeing consistent demand. Like I said in the macro, we're watchful of the macroeconomic changes, but you know, people are trying to do more with less and they're trying to make sure that they can see around the corner what's changing through the length of the customer. And that those are things that In terms of the inflationary environment inflation near its highest level in 40 years, we'll get another read on consumer prices next week. Are you finding that that is impacting customers willingness to spend and thus the customer experience? Well, we were helping large companies um deal with the, you know, if they're seeing whatever they are seeing, you know, there are sectors that are growing faster sectors that are shrinking. What is universal is that consumer behavior is shifting where they're spending more or less. And we work across all sectors. That's why I'm not going into one versus the other and everyone's looking to digitally transform their front office or customer facing functions to provide better customer experience. And that's where we play. Mm hmm. I'm just curious in terms of projections here for the rest of the year, Raji and beyond. What is your company forecasting? Well, we just came out and beat consensus on both top and bottom line. And the surprise really was returned in a free cash flow positive quarter last order. And we just also upped our guidance to forecast full year next year um operating income and free cash flow positive year. So we're looking pretty good from both the top line and the bottom line right now. Alright, Raji thomas, founder and ceo of sprinkler Raji thanks so much for coming on the show.