Core Insights - Sprinklr is facing significant challenges in its turnaround strategy, with disappointing guidance and operational issues leading to a decline in stock value [5][7][17] - The company has reduced its revenue guidance for FY 2025, indicating a more cautious outlook amid worsening macroeconomic conditions [5][17] - Despite recent setbacks, Sprinklr's ability to generate free cash flow remains a positive aspect, with expectations of $60 million for FY 2025 [6][15] Turnaround Strategy - The company is implementing a turnaround plan that includes improved onboarding experiences and leadership upgrades, but the effectiveness of these changes remains uncertain [3][10][11] - New product offerings, particularly AI-driven solutions, are part of the strategy to enhance customer engagement and retention [12][15] - The leadership changes, including the promotion of a co-CEO, aim to address operational shortcomings but may prolong the turnaround process [11][15] Financial Guidance - Sprinklr has lowered its revenue guidance from $740.5 million to a range of $714 million to $716 million for subscription revenue, reflecting a decrease in expected growth from 11% to 7% year-over-year [5][17] - The company anticipates continued challenges with longer sales cycles and increased budget scrutiny, which may impact revenue and customer retention [9][17] - Operating income guidance remains unchanged, but the company plans to achieve this through expense reductions [17] Market Position and Valuation - Sprinklr's stock is currently trading at an all-time low valuation of 3.2 times sales, raising concerns about its attractiveness as an investment [8][15] - The company is seen as a potential acquisition target due to its market position and the strategic changes being implemented [15][16] - The complexity of Sprinklr's product offerings presents both opportunities and challenges in executing its sales strategy [12][15]

AI stocks are still selling like pancakes, with companies like Nvidia and SMCI leading the charge. Admittedly, the over-zealous buying sprees make many wonder if the tech sector is in a bubble. Whether true or not, it's in an investor's best interest to buy into AI stocks that haven't run their course. These companies may be sitting on the sidelines, working on the emerging technology until they're ready to skyrocket. Then, I sorted the stocks based on earnings growth from highest to lowest. This lets me fo ...

Core Viewpoint - Sprinklr is under investigation for potential securities fraud and unlawful business practices, coinciding with disappointing financial results and guidance that fell short of market expectations [1][2]. Financial Performance - On June 5, 2024, Sprinklr reported financial results for its first fiscal quarter ending April 30, 2024, with full-year revenue guidance below expectations and second-quarter revenue guidance that did not meet consensus estimates [2]. - The company cited a soft demand environment characterized by longer sales cycles and increased budget scrutiny, leading to higher churn in its core product suites due to reduced marketing spend and seat reductions [2]. Market Reaction - Following the financial results announcement, Sprinklr's stock price dropped by $1.64 per share, or 15.13%, closing at $9.20 per share on June 6, 2024 [6]. - Analysts from D.A. Davidson and Cantor Fitzgerald downgraded Sprinklr's stock ratings from Buy to Neutral and from Overweight to Neutral, respectively, reflecting concerns over the company's performance and outlook [2].

NEW YORK, June 06, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Sprinklr, Inc. ("Sprinklr" or the "Company") (NYSE: CXM) on behalf of Sprinklr stockholders. Our investigation concerns whether Sprinklr has violated the federal securities laws and/or engaged in other unlawful business practices. On this news, Sprinklr's stock price fell by $5.59 per share, or approximately 34% to close at $11.11 per share. ...

Holzer & Holzer, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website,www.holzerlaw.com, and up ...

ATLANTA, June 06, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Sprinklr, Inc. ("Sprinklr" or the "Company") (NYSE: CXM) complied with federal securities laws. On June 5, 2024, Sprinklr announced its first quarter fiscal 2025 results and noted during its earnings call that "Q1 performance reflects lower net new bookings, and increased customer churn." Following this news, the price of the Company's stock dropped. If you purchased Sprinklr stock and suffered a loss on that investment ...

Sprinklr (NYSE:CXM) stock is falling hard on Thursday after the enterprise cloud software company released its earnings report for the first quarter of 2024. The bad news comes from the company's outlook in this latest earnings report. It expects revenue for Q2 2024 to range from $194 million to $195 million. That would see it miss Wall Street's revenue estimate of $196.8 million for the quarter. CXM Stock Earnings Results Adding to that is its adjusted earnings per share estimate of 6 cents to 7 cents for ...

SAN DIEGO, June 06, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of securities laws by Sprinklr, Inc. ("Sprinklr") (NYSE: CXM). We are looking into whether the Company or its executives failed to disclose vital information to investors, leading to losses on their investments. If you have purchased Sprinklr securities and have experienced losses, we encourage you to join our investigation to potentially make claims and recover under federal se ...

Financial Data and Key Metrics - Q1 total revenue grew 13% YoY to $196 million, with subscription revenue growing 12% YoY to $177.4 million [22] - Non-GAAP operating income was $20.4 million, resulting in a 10% non-GAAP operating margin for the quarter [22] - GAAP net income was $10.6 million, or $0.04 per diluted share [37] - Free cash flow for Q1 was $36.2 million, representing an 18% free cash flow margin [68] - Total remaining performance obligations (RPO) were $922.5 million, up 30% YoY, while cRPO was $570.4 million, up 19% YoY [39] Business Line Data and Key Metrics - Subscription revenue-based net dollar expansion rate (NDE) was 115% in Q1, though it is expected to decline in the coming quarters due to lower new business and heightened renewal pressures [66] - The company added new customers and expanded relationships with existing ones, including Alibaba, Audi, IAG Hotels & Resorts, Lululemon, and Vodafone [32] - Sprinklr Surveys, a new product, entered the customer feedback management market, leveraging generative AI-powered surveys [14] Market Data and Key Metrics - The company signed a new partnership agreement with Reddit, enabling enterprise customers to leverage Reddit for social listening and ad campaign management [16] - Forrester named Sprinklr a strong performer in conversational AI for customer service, validating its AI-driven customer experience strategy [15] Company Strategy and Industry Competition - The company is transitioning its go-to-market strategy, focusing on leadership changes and operational improvements to address lower net bookings and increased customer churn [5][6] - Sprinklr is investing in scalable onboarding experiences to improve customer retention and growth opportunities [26] - The company is positioning itself as a unified front-office platform, consolidating multiple point solutions and leveraging AI for long-term growth [33] Management Commentary on Operating Environment and Future Outlook - The macro environment has softened, with longer sales cycles and heightened budgetary scrutiny, leading to increased churn in core product suites [35] - Management expects elevated churn to continue through FY '25 and has lowered revenue guidance for the year [7][43] - The company is confident in its long-term vision, supported by new leadership and an AI-powered platform [25] Other Important Information - The company repurchased 8.3 million shares of Class A common stock for $101.2 million in Q1 and authorized an incremental $100 million share buyback program [38] - A workforce restructuring in May reduced the global workforce by approximately 3%, with related expenses of $4 million to be booked in Q2 [41] Q&A Session Summary Question: Macro Environment and Sales Execution [48] - Management noted a more pronounced budget squeeze compared to the past two years, with companies tightening spending controls [49][79] - The second half of FY '25 is expected to see slower growth due to macro softness and elevated churn [51][81] Question: Leadership and Co-CEO Structure [89][90] - The Co-CEO structure was implemented to address operational execution gaps, with Ragy Thomas focusing on product and innovation, and Trac Pham on operational execution [89][90] Question: Contact Center Trends and Competitive Positioning [94][95] - Sprinklr is replacing multiple contact center point solutions with a unified system, leveraging AI and a single code base [94][95] - The company is seen as a disruptor in the CCaaS market, with strong traction in modern care solutions [94] Question: AI Impact on Seat-Based Models [113][114] - AI is expected to improve productivity, but the company is preparing for potential pricing compression and seat count reductions [113][114] Question: Go-to-Market Changes and Stabilization [109] - The company is in the early stages of a 4-6 quarter transition to improve go-to-market execution, with leadership upgrades and operational focus [109] Question: Strategic Acquisitions and Long-Term Vision [138][139] - Sprinklr is focused on building a long-term independent platform but acknowledges its potential as a complementary partner for larger companies [138][139]

Sprinklr (CXM) reported $195.96 million in revenue for the quarter ended April 2024, representing a year-over- year increase of 13%. EPS of $0.09 for the same period compares to $0.06 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $194.54 million, representing a surprise of +0.73%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $0.07. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...