Sprinklr, Inc. (NYSE:CXM) shares rose more than 6% on Friday following the company’s reported Q2 results, highlighted by solid growth, record NRR, and substantial improvement to margins and the annual operating margin target.

Q2 subscription revenue was up 29% year-over-year to $133.1 million, compared to the Street estimate of $130.3 million. Total revenue came in at $150.6 million (up 27% year-over-year), compared to the Street estimate of $147.5 million.

The strong renewals and margin improvements lend good support to management’s better efficiency strategy. These positives are offset by bookings deceleration partially from a more back-end loaded quarter for new customer deals, and sales and marketing expense declining sequentially for the first time since the pandemic-driven recession in Q2/21, which helps the margin profile.

For the full 2023-year, the company expects total revenue in the range of $616–620 million, better than the Street estimate of $614.1 million.