Greetings. Welcome to Sprinklr's second quarter fiscal year 2027 call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Eric Scro, Head of Investor Relations. Thank you. You may begin. Thank you, operator, and welcome everyone to Sprinklr's second quarter fiscal year 2027 financial results call. Joining us today are Rory Read, Sprinklr's President and CEO, and Anthony Coletta, Sprinklr's Chief Financial Officer. We issued our earnings release a short time ago, filed the related Form 8-K with the SEC, and we have made them available on the investor relations section of our website, along with the supplementary investor presentation. Please note that on today's call, management will refer to certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. You are directed to our press release and supplementary investor presentation for a reconciliation of such measures to GAAP. In addition, during today's call, we will be making some forward-looking statements about the business and about the financial results of Sprinklr that involve many assumptions, risks, and uncertainties, including our guidance for the third fiscal quarter and full fiscal year of 2027, the impact of our corporate strategies, the benefits of our platform, and our market opportunity. Our actual results might differ materially from such forward-looking statements. Any forward-looking statements that we make on this call are based on our beliefs and assumptions as of today, and we disclaim any obligation to update them. For more details on the risks associated with these forward-looking statements, please refer to our filings with the SEC, also posted on our website. With that, I will now turn it over to Rory. Thank you, Eric, and hello everyone. It is great to be with you today. In the second quarter, total revenue was $213.7 million, up 1% year-over-year, and subscription revenue grew 3% to $194.8 million. We delivered $31.3 million in non-GAAP operating income, representing a 15% non-GAAP operating margin. I want to thank our global teams, customers, and partners for their trust and ongoing support. We continued to strengthen our leadership during the quarter with the addition of Tom Addis as our Chief Revenue Officer, and just recently, we added Jordi Ribas to our Board of Directors. Tom brings a proven track record of driving growth, scaling customer-centric organizations, and building high-performance global sales teams. Jordi is a recognized product engineering and AI leader with decades of experience at Microsoft, where he serves as President of Search and AI. We are excited to welcome Tom and Jordi to Sprinklr, and we look forward to their many contributions. In the second quarter, we continued building a stronger, more customer-centric company. At the midpoint of the fiscal year, our transformation remains on track. We remain firmly in the transition and execution phase of this process, strengthening a foundation needed to drive durable long-term growth. The business continued to show signs of improvement during the quarter, and compared to the first half of last year, we are operating from a significantly stronger position across several key areas. Our bear hugging mindset and commitment to innovation are resonating with our customers, driving deeper engagement and reinforcing confidence in our strategy. GNAR grew more than 50% year-over-year, and our enterprise momentum remains solid with four $1 million+ ARR deals closed during the quarter. Renewal rates improved, and completed sales transactions for the quarter increased 30% year-over-year. Together, these results reflect stronger execution, healthy demand, and the value customers are realizing from our AI-native platform. While we delivered solid results, we recognize that our professional service and support organization requires greater focus. Optimizing our partner ecosystem and enhancing profitability within the service business are important priorities as we continue our transformation. To accelerate these efforts, I will lead our services organization on an interim basis. We believe with this direct oversight will enable faster decision-making, stronger execution, and more rapid implementation of the changes needed to improve performance over the coming quarters. Our efforts will focus on three key areas. First, we will improve the utilization of partners and enhance the economics of customer implementations. Second, we will expand the use of our AI across our service delivery model to drive greater efficiency and scalability. Third, we will increase managed service attach rates where our data consistently shows stronger platform adoption, greater customer value realization, and higher renewal rates for customers that leverage our managed services. We believe these actions will help create a stronger foundation for growth and customer success. With that, let me turn to another key driver of our long-term growth strategy, our technology and product innovation. Sprinklr's differentiation starts with our AI-native unified platform, which helps the world's most iconic brands transform customer intelligence into business outcomes at enterprise scale. This quarter, Gartner recognized Sprinklr as a leader in the 2026 Magic Quadrant for social media management and listening, positioning us at the highest for the ability to execute and furthest for the completeness of vision. We believe this recognition validates both our strategic vision and our continued innovation leadership. Underpinning this innovation is a highly scalable enterprise-grade platform that ingests over 180 billion customer conversations annually and delivers the performance and reliability that global enterprises depend on. As AI reshapes customer experiences, enterprises are increasingly seeking solutions that combine trusted data, domain expertise, and intelligent automation to drive measurable business outcomes. With more than 200 AI engagements underway across our customer set, our agentic AI capabilities are helping our customers improve productivity, enhance customer experiences, and accelerate results. We believe our unified platform, proprietary customer intelligence, and deep enterprise expertise position Sprinklr to be a leader in the next generation of AI-powered customer experience. Here are a few customer examples that demonstrate how we are delivering results and winning in the marketplace. Following the largest deal in Sprinklr's history in the first quarter, which included significant CCaaS and platform components, our first customer story highlights an expanded partnership with one of the world's largest sports betting and gaming companies. We recently signed a five-year strategic agreement with this customer valued at well over $20 million. This partnership will extend our platform across more than 35 global brands, supporting 1,500 contact center agents and 2,500 users worldwide. The customer selected Sprinklr to simplify its technology landscape by consolidating multiple vendors into a single AI-native platform. By unifying CCaaS, social engagement, and insights, Sprinklr will help improve operational efficiency, strengthen governance, and enable greater customer understanding at scale across this global set of operations. Our second story is a $4 million TCV expansion with a leading financial software and services company. What began as a departmental deployment has evolved into an enterprise-wide partnership spanning five brands and eight business units. To simplify its technology stack and improve customer experiences, this customer consolidated three vendors and six contracts into Sprinklr's AI-native platform. By unifying social listening, publishing, customer care, and customer insights, the company gained greater efficiency, deeper insights, and faster responses across the entire enterprise. These two wins highlight a trend we're seeing across large enterprises. Customers are increasingly moving away from disconnected point solutions towards enterprise platforms with deep AI capabilities that can reduce complexity, lower cost, and drive measurable business outcomes. We believe Sprinklr is uniquely positioned to capitalize on this trend. In closing, at the midpoint of the fiscal year, we remain on track to build a stronger, more customer-centric company. We have now achieved three consecutive quarters of improved execution, which is driving GNAR growth, higher renewal rates, and stronger customer sentiment. Our bear hugging efforts and the innovation capabilities of our AI-native platform are resonating with customers and reinforcing that our strategy is working. While we're making progress, there is more work to do. Executing well in Q3 and Q4 and building upon the recent momentum is the key next step for us to enter the acceleration phase of our strategy in FY 2028. With that, I'll turn it over to Anthony for the financials. Anthony? Thank you, Rory, and good morning, everyone. First, I want to recognize the commitment and passion for customer success of our teams across the company. I also want to extend a warm welcome to Tom Addis, who recently started as new chief revenue officer and member of our leadership team. This quarter marks another key milestone in our transformation journey. We continue to execute against our roadmap and strengthen the business. While there is still work to do, our momentum is building, and we are moving steadily toward our goals. Now let me turn to our financial performance. In Q2, total revenue was $213.7 million, up 1% versus prior year, with an increase in subscription being offset by services. Subscription revenue was $194.8 million, up 3% year-over-year. We saw a balanced performance across our key markets, underpinned by the continued growth of NOW and quality logos. Professional services revenue came in at $18.9 million. This was lower than anticipated due to some softness in managed services. Our subscription revenue-based net dollar expansion rate in the second quarter was 102%. Net dollar expansion rate for the $1 million cohort was 112% in Q2, which we view as a relevant measure of increased share of wallet. Net dollar expansion from this customer cohort stayed north of 110% for the fifth consecutive quarter. More relevant to how we are transforming the business is our bear hug focus that continues to yield dividends. We believe this will continue to solidify our baseline and contribution from the top-tier customer base over time. Renewal rates came in exactly as planned and keep showing improvement year over year. Furthermore, the average contract duration continues to increase. We like to see this trend as it can compound over time. At the end of Q2 FY 2027, total RPO was $1.03 billion, once again above the $1 billion mark for the quarter, reflecting the quality of contracted demand and increasing visibility into the future. Total RPO was up 11% year on year, representing the second consecutive quarter of double-digit growth compared to the prior year period. In addition, current RPO was $614 million, up 3% year over year. Total RPO grew faster than cRPO, primarily driven by several large renewals and NOW expansions, with contract terms extended up to five years. These longer duration agreements contributed to a more than two months increase in average NOW contract length for the second consecutive quarter. While this can create timing differences between RPO and cRPO growth from quarter to quarter, it does not change the underlying level of customer commitment. We consider RPO to be a leading indicator, and we typically pair it with other metrics to better appreciate underlying business momentum. As we post the best total RPO growth on record over the past one and a half years, it is supporting near-term visibility. Turning to margins, second quarter non-GAAP subscription gross margin was 74%, while services gross margin was - 22%, resulting in a total non-GAAP gross margin of 66%. While we expected some pressure from services during the quarter, margins were further impacted by partner cost overruns and execution challenges in one region. In addition, the completion of several large implementations projects over the past year created an elevated baseline. There is no correlation to customer demand, and as Rory noted, we have identified key levers for remediation. We are bringing in some new leaders in the services organization and are working towards making this a margin-neutral line in the near term. As noted in previous calls, we are expensing I/O data and hosting costs in response to business opportunities, especially for our expanded AI capabilities. In particular, the ARR for AI native SKUs was up 40% year over year, and we are seeing outsized growth with our agentic and contact center intelligence. Turning to profitability for the quarter. Non-GAAP operating income was $31.3 million, or a 15% margin, which drove non-GAAP net income of $0.11 per diluted share. We generated $13.1 million in free cash flow in Q2. For the first half of this fiscal year, we've now generated $79 million in free cash flow. The strong free cash flow was driven by cost discipline and robust cash collection, resulting in improved cash conversion. Our balance sheet remains strong, with $453 million in cash equivalents, and marketable securities, and no debt. The $125 million accelerated share repurchase is now complete, and we have repurchased approximately 22 million shares under the program. By successfully executing this program over the past few months, we believe we optimized the value of capital deployed. as of August 28, we have $75 million remaining in our $200 million authorized repurchase plan to use at our discretion. Even after completing the buyback and the Viral Moment acquisition, we remain very well capitalized with no debt outstanding. Now I'd like to shift to our financial outlook. As Rory shared in his remarks, we are still in the second phase of our transformation and mindful of the current macro and geopolitical environment. Our expectations as of today regarding these dynamics are factored into the following figures. We remain confident in our strategy and are excited about the medium trajectory that is forming for Sprinklr. For Q3, we expect total revenue to be in the range of $215 million- $216 million, which is slightly down versus last year due a significant reduction in professional services revenue. We had called out some normalized revenue mix due to completion of flash services implementation last year. We expect subscription revenue to be in the range of $196 million- $197 million, representing 3% growth year-over-year at the midpoint. The Q3 guide implies $19 million in professional services revenue, which is down 34% year-over-year. We expect professional services gross margin to be - 15% in Q3, and as noted above, we are actively working on making improvements in this area. We expect non-GAAP operating income to be in the range of $33.5 million- $34.5 million, resulting in non-GAAP net income per diluted share of approximately $0.11, assuming 239 million diluted weighted average shares outstanding. Our non-GAAP operating income is pressured by lower professional services revenue in Q3, but more importantly, it's a structural shift for the long term. It reflects strong adoption of our AI products, which is driving higher cloud and data costs, as noted in prior quarters. We are also investing in future growth by expanding AI talent, particularly for well-deployed engineers in the field. We continue to make strategic investment to fuel the momentum across our AI product suite with the uptake of our agentic capabilities. For the full year FY 2027, we are flowing through the bid from Q2 and raising our subscription revenue guide to be in the range of $782.5 million- $784.5 million, representing 4% growth year-over-year at the midpoint. We estimate the sequential increase in quarterly subscription revenue to resume here in Q3, given higher renewal rates and pipeline conversion compared to prior year. We expect total revenue to still be in the range of $866.5 million- $868.5 million, representing 1% growth year-over-year at the midpoint. This total revenue guide now assumes professional services revenue of $84 million, reflecting a more conservative services outlook. We are firming full-year total revenue guidance because of sales traction and improving overall execution, offsetting the impact from services. For the full year FY 2027, we estimate non-GAAP operating income to be in the range of $139 million-$141 million, driving a 16% non-GAAP operating margin. This equates to non-GAAP net income per diluted share of approximately $0.47, assuming 240 million diluted weighted average shares outstanding. We estimate non-GAAP operating income to increase in the fourth quarter as we expect some efficiency gains. Deriving the net income per share for modeling purposes, a total tax provision of approximately $41 million needs to be added to the non-GAAP profit before tax line. To get to non-GAAP profit before tax, start with the non-GAAP operating income ranges provided and add an estimated $15 million in other income for the full year, with $3 million to be earned here in Q3. This other income line primarily consists of interest income. We estimate a tax provision of approximately $10 million in Q3. This equates to approximately a 26% effective tax rate on our non-GAAP profit before tax for both the quarter and the year. We now expect to generate a full-year free cash flow margin of approximately 16%, representing about $135 million of free cash flow, with roughly $10 million expected in Q3. This updated outlook reflects two factors that became clearer during the quarter. First, we now anticipate lower services billings, which reduces near-term cash collections. Second, we expect higher cash outflows for investment we're making in new hosting environments. Importantly, our cash collection efficiency remains strong, and we continue to maintain a disciplined approach to capital allocation. In summary, Q2 was a stepping stone as we continue positioning the business for the next phase. We are seeing positive signs in renewal rates and customer engagements. We have some headwinds for services, but we are taking action. This is distinct from our subscription growth outlook and from tangible progress of our core operating model. Our fundamentals remain solid, with a healthy balance sheet and strong cash conversion. As we move through this transition, we are building momentum and continue to instill operational discipline as we execute our strategy. Early indicators are beginning to firm up and also in contracted demand, which we believe positions FY 2027 at the inflection point in our overall trajectories. Our global customer base continues to embrace our Unified-CXM platform as the operating system for customer experience. Our AI-native platform combines unique data, context, and situational awareness across the enterprise, enabling customers to turn signals into actions in real time with our agentic capabilities, and that's of paramount relevance in a modern enterprise. This differentiated approach, combined with actionable context, serves as the connective tissue across customer-facing functions, helping organizations drive stronger engagement, efficiency, and greater outcomes. As we look ahead, our customer obsession remains intact, with continuous focus on the speed of innovation and quality execution for the long run. With that, we'll open the line for questions. Operator? Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question at this time, please press star one from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. The first question is from the line of Jackson Ader with KeyBanc. Please proceed with your questions. Great morning, guys. Thanks for taking our questions. The first one, Rory, is for you on the professional services performance. What's the evidence that this is truly going to be, is an execution issue or an execution fix and not some sort of indicator of activity or large deal demand? Yeah, no, quite the opposite, Jackson. We came off of the largest implementation we had ever done, and it was very successful. We continue to win large deals here in the second quarter. I referenced one, the well over $20 million TCV deal. I have very interesting large deals in the second half that are key. As I mentioned, very important, our execution in 3Q and 4Q to make sure we maintain that momentum. But basically, the transgression was that we got caught with a bit too much partner expense in the short term. We knew this was coming, and we signaled this to everyone for some time that this was the transition quarter. I think we could have executed it more cleanly. I think that I've now been running it for about six weeks. I can see line of sights over the next couple few quarters to clean it up properly. It's just about having the right mix between partners and internal, and then we have some of the larger deals that will come in the second half that build on top of it. So I want to leverage that experience. It's really just that transition period, and I think that's the key to execution. I'll give you updates as we go through the quarters, but that's my proof points. Okay. Then if I think about just the rest of the year and the fourth quarter obviously always being important for bookings and deal signings, how are you thinking about not just allocating your time now that professional services is under your direct supervision, but just right-sizing the resource and the attention allocation of the company to make sure that still new deal signings get top priority as we head into the seasonal strength? Jackson, you are spot on 100%. The key to this transformation, we have worked the last 21 months to position ourselves. We are at the halfway point of this year. We are where we wanted to be, minus this service transgression, but that is a tactical execution issue. The key to our turn in getting to the acceleration phase is running five good quarters together. We built three in a row now. We need to execute 3Q and 4Q. That means closing deals, managing Bear Hug, making sure the renewal rates stay where they have been. All indicators have become much more predictable. We believe that we are in a good position. If this was a World Cup soccer game, we are at halftime. At halftime, we are up one-nil. We are in the game for this year. Now we have to execute 3Q and 4Q, and we have to stay aggressive and win those deals. Fixing services takes a couple of few quarters. I do not see anything significant about that. It is really just that transition from which was a huge implementation, well over 200 people working on it, and then capturing that momentum. I am going to work on that, sure. But my primary focus is on every major customer, key renewals, key large deals, making sure we negotiate our data costs properly, each of those items. I am excited about adding Tom Addis on the sales side. This guy is a pro. He understands how to build long-term success. He knows how to build the culture. He is deep into the pipeline. That is the kind of discipline and focus. I am hopeful that the Middle East will settle down, as that is a key part of our business and we want to continue. That group has shown real grit and determination. They have great opportunities. The deals are there. Now we have to execute. I think that is the key, and you are spot on. My primary focus is keep building the turn. I can fix service and support, and that is important, and we will. But the key is the next two quarters and getting that momentum five quarters in a row. Thanks. Okay, got it. Thank you. The next question is from the line of Arjun Bhatia with William Blair. Please proceed with your questions. Yep, perfect. Thank you. Rory, for you, can you just maybe let us know how you think about the trade-off in professional services between relying on external partners and your internal organization to better serve your customers? Are you sort of leaning more one way or another, now that you're kind of working through some of the challenges in that organization in terms of how you should allocate resources between those two? Yeah, Arjun, I think it's really straightforward. The key to this business is to grow subscription revenue. That's the key. Becoming valuable on all phases of a Unified Customer Experience Management platform. Services is an enabler of that. Two things. We want to use the strong expertise in our internal service and support organization to augment that. They did a magnificent job on the largest deal we ever won and the implementation, really nice work. What we want to do is we want to make sure when we make this transition, we don't really need to grow that faster than subscription revenue. We'd like to leverage partners to give us more reach. We see a higher win rate when we have customers with a strong, trusted relationship with a partner. That troika, the three-way of Sprinklr, the partner, and the customer, wins about 15 points higher win rate. I like that. I have always been a channel guy my entire career, and they are definitely a powerful asset. We will be naming a new leader in the partner space. They will be reporting to Tom Addis. He is a pro in this space. I think, though, our services team brings deep, deep expertise, and I want to put them on the most critical projects. I want to bring their skills to bear to truly bring what is next to customers. This is a software company, a Unified Customer Experience Management platform company. Services are needed to enable that and to accelerate that. That is how I view it. Partners have to play a key role in this. I do not need to grow services faster. I told everyone that we had that huge deal and we would transition. I gave you the signals. Could we have done it a bit smoother? For sure. I will straighten that out. The key for us is to make sure that it is helping us win more of these Unified Customer Experience Management deals. Okay, perfect. Then, I would love to hear how you are thinking about profitability here. I know we had a little bit of a dip in the first half of the year with gross margins and AI investments, which I think makes a lot of sense. When you look at other items in OpEx, what kind of points of leverage do you see here in the business to drive operating margins higher into FY 2027 or FY 2028 and beyond? Yeah. FY 2028. I think what we have always told everyone is that in the second phase of execution and transition, we have to pay down the technical debt. I am very pleased with the progress we are making. The work around tokenization, AI in our internal execution is paying real dividends. I really like where that is going. We will be done with most of that technical deficit this year. That should position us to be more efficient. You combine that, if we execute well the next two quarters, and we run five together, we should move into the acceleration phase, and that then will enable us to really focus on that growth. So we are making the investments now to clean up the debt, to accelerate innovation with our Project Blitz and Blaze, which are over 200 customer engagements in AI. I think we are making sure we are prudent on the spend right now. As we move into that acceleration phase and we have that debt behind us, we can stretch out some bit of profitability potentially in the next year or two. But it's always a trade-off. Do we want the growth? The key for this company is growth. We need to grow faster, and I'm going to make the decisions over the next two, six, eight quarters that drive that long-term durable growth. We're in the right spot to make those decisions. Thanks. Okay. Thank you. The next question is from the line of Patrick Walravens with Citizens JMP. Please proceed with your questions. Oh, great. This is Kincaid on for Patrick. Thank you for the time. Rory, I just wanted to poke you on this metric. You mentioned that completed sales transactions for the quarter were up 30% year over year, but obviously revenue did not grow at the same rate. How do I think about that number in relation to performance? I think that's where I'd love to be. Yeah, Kincaid, the key there is I'm just trying to give you a sense with anecdotal information that gives you a feel for activity. I keep telling you, I like the pipeline, I like the uptake from the customers. There's no question the customers are seeing Sprinklr as a better company. They're engaging with us. We can see it in the pipeline. We can see it in larger deals. I can tell you that when I first got here, we backed down new logo acquisition to about 20% of our volume. We're starting to crank that up. As we go into FY 2028, we want to drive that to a much higher rate next year, probably into the 30s. That's a key component. I believe that from a standpoint of the customers, they see this kind of activity. They see the value of the platform. They're moving away from towers and spot solutions. They want to simplify their IT platform. I wanted to get a sense for that. I always talk about the pipeline and the activity. I want to give you a number. The key to subscription growth is you have to build it over multiple quarters. That's the key. We've seen our RPO come off the bottom of 3Q last year, which was the low point. We've seen it consistently build. We'd see our renewals rate for three quarters in a much better spot. We can see that we're building a firmer base to work from. We're three quarters into it. We need to run two more quarters together, and that will set the trajectory for next year. I think that gives you an indication that we have good activity on the underpinnings, but now we have to do it. You have to do it five quarters, and we're still living with that heightened churn from the first half of last year. Spectacular. On the executive side, I'm super excited to hear that you're taking ownership and taking the lead on the services piece. I'm super excited by the addition of Tom. Who else do you need to add into this organization to make sure that you guys are going to be flying? Yeah. We've done a very good job across the board of building out the leadership team, not only at the ELT level, but the next level and two levels down. Most all of our VP and SVP positions are complete. There's a handful left out there, so I feel we have that operating organization in place. I think we want to get the head of partners in place. We're going to shortly announce a new leader in customer success, and I think then it's really just doing the long-term leader for service and support. I'm in no gigantic rush to do that. I want to find that right person, but I also want to get my fingerprints on it before I pass it off to someone. I don't want to give any sense that I'm not focused on our largest deals, our biggest renewals, and our data relationships with our key technology partners. That's always my first priority. Thank you so much. Our next question is from the line of Raimo Lenschow with Barclays. Please proceed with your question. Perfect. Thank you. Rory, we kind of use billings often as a leading indicator, and I know it can be noisy, and I got some of the points on services on billings there. Is that what drove that number? Because if I use that as a leading number, obviously there's some different messages coming from that one. Can you speak to that, please? Billing? I didn't quite hear you kind of- Yeah, billing. Sorry, Raimo. What did you say exactly? No, I said billings is kind of, we use that often as a leading indicator for what's coming. I know you had noise from professional services. Is that all professional services or what's going on there? Yeah. There's a big chunk. I'll pass it to Anthony in a second. There was some in terms of professional service and some timing activity. I like the trajectory year to year at the halfway point. I like the RPO trend. I like the fact that we're seeing longer renewals, we're seeing earlier renewals. I think we're a work in progress. Let's keep going. I think we're at the halfway point of a World Cup game. I think we're tired. We're ahead one. We got to execute. We got to keep going and deliver 3Q and 4Q. Anthony, any color you want to add on billings? Yeah. No, you're right, Raimo. This is mostly related to services billings, and while we don't guide on billings, it came a bit softer than anticipated for the quarter. This is no change for the long run. You've seen the total RPO trajectory and the fact that we've also closed some larger deals with longer periods and terms, et cetera, that's supporting the model. For the short term, obviously, yeah, services billings came a bit softer than anticipated, but that's pretty much it. Okay, perfect. Thank you. The second question was, what are you seeing at the moment in the market in terms of new project starts? I know you're competing on something, but how does it in terms of AI, there's a lot of talk about crowding out and things like that. What are you seeing in the field engagements? What I said is the key. I think our bear hugging, Raimo, is definitely working. With our core business, I think we have seen a good uptake in interest. Our pipeline looks good in the second half. We have got more large deals in the next three quarters than we have had in my time that I have been here. I think our run rate business looks positive. I think the activity and interest level of customers, and they are seeing a different Sprinklr. Over 200 AI agentic co-pilot engagements, we track every one of them. And we have implemented Project Blitz, which we are trying to deliver code and changes using AI and our own internal processes every week or two, moving from a quarterly release cycle that we used to go on. This is much faster innovation. Then Blaze, we have forward-deployed engineers on over 70%, the vast majority of those customer AI engagements. We see good activity in large, we see good activity on run rate, we see good engagement, and then we have in the must-win AI space, I like 200 engagements is a good number. We are growing at over 40+ percent in that space. This is the right indicators. And if I continue to turn on the spigot as I harden the infrastructure on new logo acquisition, we should see that next year in FY 2028, and that is how we are positioning this transition. Thanks, Raimo. Thank you. Our next question is from the line of Catharine Trebnick with Rosenblatt Securities. Please proceed with your questions. Catharine. Hi, [inaudible]. Sorry, Beth's on mute. Sorry about that, Rory. Hey, quick question on net dollar expansion. This is the fourth quarter of north of 110, five consecutive quarters. How sustainable is that level, and what's it driven by? Seat expansion, module attach, price? More color on that would be appreciated. Yes. As you say, Catharine, it's a good trend. We have been fairly steady on that trend overall. It's been in the right ballpark. It can vary from one quarter to the other, but it's still solid. As I mentioned, we also look closely based on our go-to-market focus and strategy on the 1 million+ cohorts in terms of net dollar expansion, and this is for five consecutive quarters, north of 110%, as I said. Essentially, we are seeing more renewals and more [inaudible] growth, and we have a customer sentiment that is really close to the bottom now in terms of uptick and firming up. We expect this to be a metric that will continue to improve over time or, and to stay steady. We don't expect this to be lower than where we are. We expect this to firm up, actually. This is actually when you look at the leading indicators, this is what those leading indicators are telling us in terms of ARR, in terms of total RPO, et cetera. This is pointing that direction. There was a bit of this transition also in the space across the different segments, and you can see that when you look at the difference between the $1 million+ cohorts and the rest. You could see that there was some transition happening underneath. We see it stable and probably firming up as we go. By the way, Catharine, I think it reflects on Bear Hug. As we've addressed some of the issues from the previous three or four years, our enterprise customers are seeing a different Sprinklr. As we've taken Bear Hug lower and lower into the cohorts, we see an improvement in terms of renewal rates and expansion. There's no question. 250 and below is the last space for us to tackle with Bear Hug, and I believe the work we're doing with Project Cornerstone is going to yield the right outcomes there. I believe that we're seeing the right momentum, the right customer sentiment, and I think we have the right solution. We have this access to data that they need in the new buying models that's almost unmatched in the marketplace. With better execution, better engagement, we're seeing better uptake from our customers. All right. Thank you. Thank you. The next question is from the line of Mason Marion with Cantor Fitzgerald. Please receive your questions. Hi, thanks for taking our questions today. I want to go back to the Middle East. I think you had a few deals slip last quarter. Did you see those close or are you still seeing ongoing disruptions in the region, or are you getting back to business as normal there? Yeah. Thanks, Mason. What I see is a gritty, determined team in Sprinklr Middle East. They're doing a great job in a tough environment. We saw yesterday things heat up again. The thing is a fluid structure. We saw the deals that slipped from 1Q pretty much close in 2Q, but then we saw some other deals close. They've done a good job of executing and delivering. They have the pipeline out there to have a quite interesting uptick. I'd like to see this macro situation stabilize a bit more so that team could run like I think they can. They've done a good job. I think they're delivering at a strong level, but I think there's much more work to get there once that environment settles down. I still think it's a bit choppy. We're not counting on any kind of breakout numbers at this point, but I am counting on that team to show the grit and determination that they've shown through the first half to keep delivering. Maybe one more on that topic. I know you had to migrate those customers to your Irish data center. Are you planning on keeping them in the Irish data center? Are you going to move them back to the region? Then how is that impacting your gross margins? Yeah. We had to put up a new capability in region. I think that's partial. Two reasons, because some of our customers need to, based on their local legal and regulatory issues, return. Two, I think there is good demand in that region on a strategic timeline, the next six, 12, 18, 24 months. So we're building some more capacity on the cog side, both around sovereign data access, geo-fencing concepts around the Middle East and around Asia, where we see interesting strategic demand. We'll make those investments now so that we're ready. But we're now starting to move some of those customers back to the Middle East and position ourselves for future opportunities that we see in the pipeline. Thank you. Thanks, Mason. Our next question is in the line of Elizabeth Porter with Morgan Stanley. Please just use your question. Great. Thank you so much for the question. I want to develop on the subscription revenue guidance. When we're looking at the full year, it looks like the Q4 implies a bit of a deceleration in growth just exiting the year. So I was hoping you could put a finer point on what are some of the measurable metrics, whether it's in net new ARR, cRPO, or retention, that really support the confidence that Sprinklr is moving from the execution phase into the acceleration phase in FY 2028? And how much of it is rooted in what you're seeing today versus still needing to execute on in the back half of the year? Thanks. Yeah. Thanks, Elizabeth, and great to talk to you, and welcome back. Hey, I think, Elizabeth, the key here is 3Q and 4Q. We're keeping our powder dry. We're making sure we execute. We've done three good quarters in a row that are building the foundation. You know in a subscription business and with this kind of software, you have to run four quarters. We have to clean up that accelerated churn from the first half of last year. That's starting to get behind us, right? And we've seen three very predictable, good quarters on renewals, on GNAR, on those expansion. But it's only halftime. We have to deliver 3Q and 4Q. How we execute 3Q and 4Q sets up the trajectory for next year. The feedback I give you is where we would like to be on the transformation at this midpoint of this fiscal year. We see the deals and the opportunities. Now we have to execute and close them in 3Q and 4Q. We will give you an update at the end of 3Q, and then based on that, we'll give you an update on 4Q. That will set the trajectory of next year. That's the key. That's where we sit. Great. Thank you so much. Thanks, Elizabeth. The next question is from the line of Tyler Radke with Citi. Please just use your questions. Good morning, Rory. You talked about 200 active AI engagements, which is great to hear. I am wondering if you could just compare and contrast the capabilities and use cases that you are seeing in those AI engagements versus, say, earlier this year or a year ago. For the engagements that initially translate to a deal, what type of uplift or how can you sort of quantify what you are booking in terms of ACV? Thank you. Yeah. Thanks, Tyler. That is an awesome question. I think the key here is we have over 300 AI engineers in place, forward deployed capabilities. We see the application of the AI technology internally, both in our support services and our engineering team, playing real important dividends. As we look at these 200 engagements, and we look back maybe three, four quarters, they are in the agentic space, the copilot space. Those are primary, and some of the insight activities. Three, four quarters ago, it is a lot of POCs and a lot of concepts. People were excited about it, but they did not really know how to yield. When you get to the detailed execution, you have to create the workflows, the APIs that link the data, and then you have to have the right contextual data unlock the agentic power of the solution. Copiloting is straightforward. That gives you the knowledge and the productivity, but full agentic, you really need that data and execution. That is not a two-week project. Those projects, to go implement them, they take time. They might take two months, three months, and really execute them well. But I think what we are seeing, and we have tracked every single project, and we are looking at every project, what went well, what needed to change. The key for us moving forward is making sure that we are after those POCs, which anybody can do, and they are fancy and look nice. Make sure there is a real understanding of what the workflow that we are going to move to an agentic solution is, and how we are going to link the contextual data that creates the yield. I think the knowledge and experience that our teams and our customer has is at a much higher level than it was three, four quarters ago. I think the practical execution and leveraging this powerful set of data in Sprinklr, it should be part of that acceleration phase next year. We have to win in the agentic space because otherwise you just become a pipe. You do not want to be a pipe. You want to be a player in that. 200 engagement, very nice. Like them. They are a key driver for the growth that comes over the next two, three years. The key here is take the learnings over the past two, three, four quarters, keep refining it over the next couple of quarters, and demonstrate those outcomes that we are seeing with customers now. These are not POCs. These are real returns and real deflection rate, real cost savings. We have been doing this at scale with some of our largest customers for seven, eight years, like one of the largest technology companies in Texas. We have had a long relationship in this AI space, and that is what is happening in that space. Very different than three, four quarters ago, and I think both sides, the customer and us, have learned how to really turn it into outcomes. Thank you. Thanks, Tyler. Thank you. The next question is from the line of Clark Wright with D.A. Davidson. Please proceed with your question. Awesome. Thank you. I appreciate the added commentary on new logo growth assumptions in the current pipeline. Could you potentially elaborate on, from an industry perspective, if you're seeing traction in specific end markets? Yeah. So, hey, Clark. Great to talk to you. What we did when I got here, and it was three and a half years of declining activity. We said, hey, we got to back off a little bit and get our house in order. Let's harden the CCaaS space, get it mature, get our processes in order. Let's accelerate our innovation engine, and let's start doing what we say. We must be accountable to customers. That's what Bear Hug's about. Do what we say and own what we do. What we're seeing is we're seeing traction in the idea across these enterprise customers. We see it in banking, we see it in retail, we see it in pretty much all of the spaces we play. That's not something different in terms of that space. It's really about seeing this take hold and really getting that in place. Awesome. Appreciate that commentary. Could you maybe also just talk about the difference in the upper echelon of customers that are utilizing your AI offerings today versus the strategy in order to proliferate your AI offerings across a broader customer base? Yeah. What we're seeing is, we're seeing across these 200 engagements AI, we're seeing it across our enterprise, these iconic brands. They're very engaged. They know the power of the customer signals that we're able to pull together. They're creating better insights. They're creating better agentic. We're seeing it both in CCaaS and on the core side, both. We're seeing them have a hunger and desire for outcomes. I think we're past the flashy part where everybody is like, AI is going to change everything, and I got to do AI. Now we're into the phase where we've got to drive real efficiency, real outcomes in CCaaS. We've got to create actionable insights in the core and marketing and social spaces. I think contextual data and the data that we bring together across these customer signals is what enables that to happen. Some of the execution, and people run around and say, oh, you can do it in 10 minutes. Remember, you have got to define the workflows. You have got to link the data, pull it together, and let the AI engine create the outcome. We are seeing it at the top of our stack all the way through the top of commercial. There is definitely a desire, and they have the data there. So we see this as a key enabler both for our service business and for our social business. In terms of new logos, we back that down. I think as we will be ready at the beginning of FY 2028. We know it is a six to nine month kind of sales cycle. We are starting to turn the new logo engine on now so that we are ready in the first half. Does that help, Clark? No, that is awesome. Thank you. Thanks, Clark. Thank you. At this time, we have reached the end of our question and answer session. I will turn the floor over to Rory for closing comments. Yeah. I want to thank everyone for joining today. I really appreciate the continued interest. Hey, we are where we expected to be, minus the transgression in terms of services. I think that's a tactical couple of few quarter clean up. I think it's really just a transition of that one large project, be more efficient. I'll oversee that in the tactical or interim time period. The key for us is we're three quarters in of improving momentum, where predictability is getting better. We've hardened the infrastructure. We're becoming much more enterprise mature. We're seeing our customers react to it in terms of activity, engagement, and interest. The key for us is execute 3Q and 4Q. That's the setup that gives you the trajectory into FY 2028. Those are the key. I think we'll continue to Bear Hug. We'll keep focusing, but I like where we're sitting. We have more work to do. Appreciate your interest, and we'll keep you updated as we move forward. Thanks, everybody. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. We thank you for your participation.