Group 1 - The market in 2024 is characterized by momentum, particularly in popular AI stocks and companies expected to benefit from the incoming Trump administration [1] - Companies facing ongoing challenges and multi-quarter transitions are experiencing declines [1] - Gary Alexander has extensive experience in covering technology companies and has been a contributor on Seeking Alpha since 2017, indicating a strong background in industry analysis [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 grew 8% year-over-year to $200.7 million, while subscription revenue increased 6% year-over-year to $180.6 million [7][21] - Non-GAAP operating income was $23.3 million, resulting in a 12% non-GAAP operating margin for the quarter [7][26] - Free cash flow generated during Q3 was $4.9 million, contributing to a total of $57.6 million for the first three quarters of FY '25 [27][38] - Remaining performance obligations (RPO) stood at $906.3 million, up 17% year-over-year, with current RPO (cRPO) at $545.6 million, up 11% year-over-year [29] Business Line Data and Key Metrics Changes - Professional services revenue for Q3 was $20.1 million, driven by more projects completed and a higher renewal rate for recurring services [22] - Subscription revenue-based net dollar expansion rate was 107%, expected to decline in the coming quarters due to lower new business and elevated churn [22] Market Data and Key Metrics Changes - The company has grown its customer base to over 1,800, with nearly 150 customers contributing over $1 million in subscription revenue, a 20% increase year-over-year [14][23] - The company expects total revenue for Q4 to be in the range of $200 million to $201 million, representing 3% growth year-over-year at the midpoint [30] Company Strategy and Development Direction - The company aims to become a "Rule of 40" company, currently operating below 20%, and plans to achieve this through faster top-line growth and substantial operating margin expansion [17] - An ambidextrous strategy will be employed to reenergize and grow the core business while expanding service offerings [16] - Simplification of pricing and packaging is planned for FY '26, moving towards a model with fewer SKUs [71] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in reducing churn and operational debt, with a focus on improving efficiency and execution [16][82] - The macroeconomic environment is expected to see mid-single-digit IT spending growth, with optimism about demand for unified customer experiences [90][92] Other Important Information - The company plans to provide a more comprehensive operational plan and financial guidance for FY '26 during the Q4 earnings call scheduled for late March [18][39] - Professional services gross margins are currently negative, with efforts underway to improve efficiency [24] Q&A Session Summary Question: Future direction between CCaaS and core social solutions - Management plans to focus on reenergizing the core business while expanding service offerings, emphasizing the importance of their unified customer experience platform [43][49] Question: Understanding growth rates of subscription revenue, billings, and cRPO - Management indicates that cRPO and RPO are better indicators of future growth than billings, which can be inconsistent due to billing cycles [50][55] Question: Changes in renewal processes and turnaround timeline - Management expects to see material progress in 12 to 24 months as they implement changes in the renewal account management structure [58][60] Question: Insights on churn and operational debt - Management identifies overbuying during the COVID period and tactical errors in execution as contributors to churn, with plans to improve customer relationship management [82][86] Question: Updates on pricing and packaging analysis - A simplified pricing model is expected in FY '26, moving towards essential and professional tiers with modular options [71][72] Question: Confidence in billings reacceleration - Historical patterns show a consistent reacceleration of billings from Q3 to Q4, providing confidence in future growth [103][104] Question: Sales organization changes and focus - A dual pod structure will be implemented to enhance coverage and support for key accounts, with a focus on improving renewal rates [111][115]

For the quarter ended October 2024, Sprinklr (CXM) reported revenue of $200.69 million, up 7.7% over the same period last year. EPS came in at $0.10, compared to $0.11 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $196.55 million, representing a surprise of +2.10%. The company delivered an EPS surprise of +25.00%, with the consensus EPS estimate being $0.08.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Core Viewpoint - Sprinklr reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.11 per share a year ago, indicating a 25% earnings surprise [1][2] Financial Performance - The company achieved revenues of $200.69 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 2.10% and showing an increase from $186.33 million year-over-year [2] - Over the last four quarters, Sprinklr has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Sprinklr shares have declined approximately 31.5% since the beginning of the year, contrasting with the S&P 500's gain of 26.8% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $196.56 million, and for the current fiscal year, it is $0.33 on revenues of $785.04 million [8] - The estimate revisions trend for Sprinklr is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] Industry Context - The Technology Services industry, to which Sprinklr belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Total revenue for the three months ended October 31, 2024, was $200,689, reflecting an 8% increase from $186,325 in the prior year[132]. - Subscription revenue for the three months ended October 31, 2024, was $180,634, a 6% increase from $170,464 in the same period of 2023[132]. - Professional services revenue increased by 26% to $20,055 for the three months ended October 31, 2024, compared to $15,861 in 2023[132]. - Total revenue for the nine months ended October 31, 2024, was $593,855,000, reflecting a 10% increase from $538,153,000 in the prior year[137]. - Subscription revenue for the nine months ended October 31, 2024, increased by 9% to $535,856,000 compared to $491,581,000 in the same period of 2023[137]. - Net income for the three months ended October 31, 2024, was $10,455, a decrease from $16,967 in the same period of 2023[134]. - Net income for the nine months ended October 31, 2024, was $22.9 million, compared to $30.3 million for the same period in 2023, reflecting a decrease of approximately 24.5%[153]. - Non-GAAP net income for the nine months ended October 31, 2024, was $68.3 million, down from $74.5 million in 2023, representing a decline of about 8.5%[153]. Expenses and Costs - Total costs of revenue increased by 24% to $57,821 for the three months ended October 31, 2024, compared to $46,448 in 2023[134]. - Research and development expenses were $23,280 for the three months ended October 31, 2024, remaining relatively flat compared to $23,146 in 2023[134]. - Sales and marketing expenses increased by 3% to $77,576 for the three months ended October 31, 2024, compared to $75,446 in 2023[134]. - General and administrative expenses rose by 21% to $34,123 for the three months ended October 31, 2024, up from $28,096 in 2023[134]. - Research and development expenses increased to $69,441,000, representing 12% of revenue, compared to 13% in the previous year[140]. - General and administrative expenses rose by 31% to $102,084,000, driven by increased personnel-related costs and consulting expenses[142]. - Costs of subscription revenue rose by 21% to $102,599,000, up from $85,136,000, primarily due to increased third-party cloud infrastructure costs[138]. Profitability Metrics - Gross profit for the three months ended October 31, 2024, was $142,868, slightly up from $139,877 in the same period of 2023[134]. - Gross margin for subscription decreased by 2 percentage points to 81% due to higher costs associated with cloud infrastructure[140]. - Non-GAAP gross profit for the nine months ended October 31, 2024, was $432,657,000, with a non-GAAP gross margin of 73%[144]. - Non-GAAP operating income for the nine months ended October 31, 2024, was $58,872,000, with a non-GAAP operating margin of 10%[144]. Customer Metrics - The Net Dollar Expansion Rate (NDE) for the trailing 12-month period ending October 31, 2024, was 107.3%, down from 117.7% for the previous year, attributed to increased churn due to macroeconomic conditions[117]. - The company had 147 large customers as of October 31, 2024, compared to 123 large customers a year earlier[112]. Cash Flow and Liquidity - Cash provided by operating activities increased to $72.2 million for the nine months ended October 31, 2024, from $54.2 million in 2023, marking an increase of approximately 33.3%[156]. - Free cash flow for the nine months ended October 31, 2024, was $57.6 million, compared to $38.9 million in 2023, indicating a growth of about 47.9%[153]. - As of October 31, 2024, the company had $93.2 million in cash and cash equivalents and $383.4 million in highly liquid marketable securities, ensuring liquidity for at least the next 12 months[147]. - Cash used in financing activities for the nine months ended October 31, 2024, was $251.6 million, primarily due to share repurchase payments[157]. Shareholder Actions - The company repurchased 25,460,052 shares of Class A common stock for a total cost of $271.0 million during the nine months ended October 31, 2024, under the 2024 Share Repurchase Program[150]. Market Conditions - Macroeconomic uncertainties, including inflation and geopolitical conflicts, may negatively impact business growth and customer spending on technology[118]. - The company operates in over 80 countries and its AI-powered platform recognizes over 150 languages, indicating a broad global reach[112]. Tax and Valuation - Provision for income taxes increased significantly by 181% to $9,990,000, influenced by customer withholding taxes and state taxes[142]. - The company has determined that it is more likely than not that its U.S. deferred tax assets will not be realizable as of October 31, 2024[160]. - The company maintains a full valuation allowance against its U.S. deferred tax assets as of October 31, 2024[160]. - There have been no material changes to the company's critical accounting policies and estimates compared to those disclosed in the 2024 10-K, except for estimates related to U.S. deferred tax assets[158]. Risk Factors - Market risk exposures include foreign exchange risk related to transactions and earnings in currencies other than the U.S. dollar, and interest rate risk due to changes in interest rates on assets[162]. - There were no material changes in market risks since January 31, 2024, as disclosed in the 2024 10-K[162].

Revenue Performance - Q3 total revenue reached $200.7 million, an 8% increase year-over-year[1] - Q3 subscription revenue was $180.6 million, up 6% year-over-year[1] - Total revenue for the three months ended October 31, 2024, was $200.689 million, a 7.3% increase from $186.325 million in the same period of 2023[15] - Subscription revenue increased to $180.634 million, up from $170.464 million year-over-year, representing a growth of 6.8%[15] - Guidance for Q4 includes subscription revenue between $180 million and $181 million, and total revenue between $200 million and $201 million[5] - Full fiscal year guidance projects total revenue between $793.9 million and $794.9 million[6] Profitability Metrics - Non-GAAP operating income for Q3 was $23.3 million, down from $27.4 million in the same quarter last year[3] - Non-GAAP net income per share for Q3 was $0.10, compared to $0.11 in the prior year[3] - Net income for the three months ended October 31, 2024, was $10.455 million, a decrease of 38.5% compared to $16.967 million in the same period of 2023[15] - Operating income decreased to $7.889 million, down 40.1% from $13.189 million year-over-year[15] - Non-GAAP operating income for the three months ended October 31, 2024, was $23.283 million, compared to $27.443 million in the same period of 2023, reflecting a decline of 15.7%[19] - Non-GAAP net income for 2024 is $25,849,000, a decrease of 17.5% from $31,221,000 in 2023[21] - Net income for 2024 is $10,455,000, down 38.5% from $16,967,000 in 2023[21] Cash Flow and Financial Position - Q3 net cash provided by operating activities was $9.2 million, with free cash flow of $4.9 million[1] - Cash flow from operating activities for the nine months ended October 31, 2024, was $72.225 million, an increase from $54.162 million in the same period of 2023[17] - Free cash flow for the nine months ended October 31, 2024, was $57.616 million, compared to $38.877 million in the same period of 2023, indicating a significant increase[19] - Total cash, cash equivalents, and marketable securities as of October 31, 2024, amounted to $476.6 million[3] - Cash, cash equivalents, and restricted cash at the end of the period were $101.503 million, a decrease from $180.864 million at the end of the same period in 2023[17] Customer Growth and Obligations - Remaining performance obligations (RPO) increased by 17% year-over-year, while current RPO (cRPO) rose by 11%[1] - The number of $1 million customers grew to 147, representing a 20% increase year-over-year[1] Operating Expenses and Compensation - Total operating expenses rose to $134.979 million, an increase of 6.8% from $126.688 million in the same period of 2023[15] - Stock-based compensation expense increased to $15,376,000 in 2024 from $14,204,000 in 2023, representing a rise of 8.2%[21] - Stock-based compensation expense in the second segment increased to $45,243,000 in 2024 from $44,043,000 in 2023, a rise of 2.7%[21]

Core Insights - Wall Street analysts expect Sprinklr (CXM) to report quarterly earnings of $0.08 per share, reflecting a year-over-year decline of 27.3% [1] - Revenue is anticipated to be $196.55 million, which represents a 5.5% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] Revenue Estimates - Analysts project 'Revenue- Subscription' to reach $178.16 million, indicating a year-over-year increase of 4.5% [4] - 'Revenue- Professional services' is expected to be $18.41 million, reflecting a year-over-year change of 16.1% [4] Gross Margin - The predicted 'Gross Margin - Subscription' is estimated at 81.0%, down from 82% in the previous year [4] Stock Performance - Sprinklr shares have returned +11.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a +3.8% change [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [5]

Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 38 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during ...

Sprinklr (CXM) shares soared 6.6% in the last trading session to close at $7.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% gain over the past four weeks.The stock price has increased as the company continues to add several customers and expand existing ones such as Ford, UBS, T-Mobile, Planet Fitness and Grupo Bimbo. It is also improving customer experience by using AI-powered listening, publishing, engagement, marketi ...

NEW YORK, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Sprinklr, Inc. (NYSE: CXM) on behalf of long-term stockholders following a class action complaint that was filed against Sprinklr on August 13, 2024 with a Class Period from March 29, 2023 to June 5, 2024. Our investigation concerns whether the board of directors of Sprinklr have breached their fiduciary duties to the company. According to th ...