Core Viewpoint - Sprinklr reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and showing an increase from $0.09 per share a year ago, indicating a 20% earnings surprise [1][2] Financial Performance - The company achieved revenues of $205.5 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.79%, and up from $195.96 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 increased approximately 1.2% since the beginning of the year, compared to a 1.5% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $202.92 million, and for the current fiscal year, it is $0.38 on revenues of $820.03 million [7] - The trend of estimate revisions for Sprinklr is mixed, which could change following the recent earnings report [6] Industry Context - The Technology Services industry, to which Sprinklr belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 grew 5% year over year to $205.5 million, while subscription revenue increased 4% year over year to $184.1 million [6][22] - Non-GAAP operating income was $36.7 million, resulting in an 18% non-GAAP operating margin for the quarter [6][25] - Free cash flow generation reached a record $81 million for the quarter [6][26] - The subscription revenue base net dollar expansion rate was 102%, reflecting ongoing customer churn and downsell activity [22] Business Line Data and Key Metrics Changes - Professional services revenue was $21.4 million, contributing to the overall revenue growth [22] - Subscription gross margin was 78%, while professional services gross margin was 6%, leading to a total non-GAAP gross margin of 70% [24] - The number of customers generating at least $1 million in annual subscription revenue increased by 6% year over year to 146 [22][23] Market Data and Key Metrics Changes - The company noted that macroeconomic uncertainty has led to longer sales cycles and increased scrutiny of enterprise spending [9][28] - The core pipeline is reported to be at its highest level in the past 18 months, indicating a healthy market position [11][54] Company Strategy and Development Direction - The company is focused on transforming its business through an ambidextrous strategy, optimizing cost structures, and strengthening product delivery roadmaps [8][12] - Project Bearhug aims to engage the top 500 customers, representing approximately 80% of revenue, to improve customer relationships and drive ROI [14][15] - The company is committed to enhancing its AI-native platform to deliver unified customer experience management [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that FY 2026 is a transitional year with expected challenges due to past execution issues and macroeconomic factors [9][10] - There is optimism about future growth as the company works to improve execution and customer engagement [20][21] - The company maintains its guidance for FY 2026, expecting subscription revenue to be in the range of $741 million to $743 million, representing 3% growth year over year [33][34] Other Important Information - The company has authorized a new $150 million stock buyback program, expected to be completed by June 30, 2026 [26] - Total remaining performance obligations (RPO) increased by 2% year over year to $943.2 million [27] Q&A Session Summary Question: What is the timeline for the go-to-market strategy to reach its full potential? - Management indicated that FY 2026 is transitional, with expectations for improved sales execution and customer engagement in the latter half of the year [40][42] Question: What differentiates Sprinklr in the CCaaS market? - The AI capabilities of the platform are key differentiators, providing a unified experience for agents and customers [44][46] Question: Is the elongation in sales cycles broad-based across customers? - Management noted that the scrutiny is widespread, affecting all customers, but emphasized that the company is seeing opportunities in its pipeline [52][54] Question: What is driving logo churn and how should it be viewed through the year? - Management attributed churn to execution challenges and emphasized the need for improved customer engagement and implementation consistency [55][56] Question: What R&D activities are being pursued to help with renewals? - The company is focusing on improving user experience and exploring acquisition opportunities to enhance its core offerings [66][68]

Financial Data and Key Metrics Changes - Total revenue for the first quarter grew 5% year over year to $205.5 million, while subscription revenue increased 4% year over year to $184.1 million [5][22] - Non-GAAP operating income was $36.7 million, resulting in an 18% non-GAAP operating margin for the quarter [5][24] - Free cash flow generation reached a record $81 million for the quarter [5][25] - The subscription revenue base net dollar expansion rate was 102%, reflecting elevated customer churn and down-sell activity [22] Business Line Data and Key Metrics Changes - Professional services revenue was $21.4 million, contributing to the overall revenue growth [22] - Subscription gross margin was 78%, while professional services gross margin was 6%, leading to a total non-GAAP gross margin of 70% [23] Market Data and Key Metrics Changes - As of April 30, the company had 146 customers generating at least $1 million in annual subscription revenue, a 6% increase year over year [17][22] - The total remaining performance obligations (RPO) were $943.2 million, up 2% year over year, while current RPO was $596.8 million, up 5% year over year [27] Company Strategy and Development Direction - The company is focused on transforming its business through a clear ambidextrous strategy, optimizing its cost structure, and strengthening its product delivery roadmaps [7][12] - Project Bearhug aims to engage the top 500 customers, representing approximately 80% of revenue, to drive accelerated ROI [14] - The company is committed to improving customer implementation processes and post-sales support to enhance customer satisfaction and retention [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties leading to longer sales cycles and increased scrutiny of enterprise spending [9][28] - The company expects FY 2026 to be a transitional year with ongoing challenges but remains optimistic about future growth opportunities [20][33] - Guidance for Q2 indicates total revenue in the range of $205 million to $206 million, representing 4% growth year over year [31] Other Important Information - The company has authorized a new $150 million stock buyback program, expected to be completed by June 30, 2026 [26] - The company is experiencing higher data and hosting costs due to launching new cloud environments [23] Q&A Session Summary Question: How long until the go-to-market strategy reaches its full potential? - Management indicated that FY 2026 is a transitional year, with expectations for improved sales execution and customer engagement in the latter half of the year [39][41] Question: What differentiates Sprinklr in the CCaaS market? - The company highlighted its AI capabilities and unified platform as key differentiators, enabling a seamless experience for agents and customers [44][46] Question: Is the elongation in sales cycles broad-based across customers? - Management noted that the scrutiny is widespread, affecting all customers, but emphasized that the company is seeing opportunities in its core pipeline [51][53] Question: What is driving logo churn and how to address it? - Management attributed churn to past execution challenges and emphasized the need for improved customer engagement and consistent implementation processes [55][57] Question: What R&D activities are being pursued to help with renewals? - The company is focusing on improving user experience and exploring acquisition opportunities to enhance its core offerings [65][67] Question: What metrics are being used to measure the success of the new pod structure? - Management is implementing a collaborative approach within sales teams, emphasizing accountability and customer engagement to drive success [100][102]

Group 1 - Analysts project that Sprinklr (CXM) will announce quarterly earnings of $0.10 per share, an increase of 11.1% year over year, with revenues expected to reach $201.89 million, a 3% increase from the same quarter last year [1] - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment of projections by covering analysts [1] - Revenue from subscriptions is estimated to be $182.39 million, reflecting a 2.8% increase from the prior-year quarter, while revenue from professional services is projected at $19.49 million, a 4.8% increase [4] Group 2 - The projected gross margin for subscriptions is expected to be 76.4%, down from 82% in the previous year [4] - Sprinklr shares have shown a return of +10.1% over the past month, outperforming the Zacks S&P 500 composite's +6.4% change [5] - With a Zacks Rank 3 (Hold), Sprinklr is anticipated to mirror overall market performance in the near future [5]

Summary of Insider Transactions Analysis Industry Overview - The analysis covers insider transactions across various companies in the enterprise software sector, particularly focusing on small to mid-cap (SMID Cap) firms. Key Insights - **March 2025 Insider Transactions**: The total insider transaction value was over $900 million, with 97% being sell transactions and only 3% buy transactions, excluding transactions by >10% external shareholders [5][7] - **Sell Transactions**: 95% of sell transactions were not executed under Rule 10b5-1, which allows for pre-scheduled trades. This percentage drops to 94% when excluding sales made to satisfy tax obligations. After adjusting for Nutanix's share sales by Bain Capital, the percentage of non-10b5-1 sell transactions falls to 4% and 3% respectively [5][7] - **Buy Transactions**: All buy transactions in March were executed under Rule 10b5-1, indicating a structured approach to buying shares by insiders [5][7] Notable Transactions - **Asana (ASAN)**: CEO Dustin Moskovitz purchased 1.8 million shares worth $25.6 million, holding 37.23% of total shares outstanding [5][7] - **C3.ai (AI)**: CEO Tom Siebel sold 639,000 shares valued at $13.9 million, owning 5.5% of total shares outstanding [5][7] - **Elastic (ESTC)**: CEO Ashutosh Kulkarni sold approximately 24,000 shares for $2.2 million, while co-founder Shay Banon sold around 203,000 shares for $21.9 million, with most sales not under 10b5-1 [5][7] - **GitLab (GTLB)**: Director Matthew Jacobson sold 153,000 shares worth $8 million, not under 10b5-1 [5][7] - **Nutanix (NTNX)**: Bain Capital sold 11 million shares valued at $819.6 million, not under 10b5-1, related to the conversion of convertible notes [5][7] - **Sprinklr (CXM)**: Director Neeraj Agrawal sold 26,000 shares for $242,000, not under 10b5-1 [5][7] Year-to-Date (YTD) Insights for 2025 - **Total Transactions**: The aggregate insider transaction value for the year was $1.1 billion, with 98% being sell transactions and 2% buy transactions [7] - **Sell Transactions**: 77% of sell transactions were not executed under 10b5-1, dropping to 76% when excluding tax-related sales. Adjusting for Nutanix's sales, this number falls to 3% [7] - **Buy Transactions**: All buy transactions executed in 2025 were under 10b5-1 [7] Additional Noteworthy Transactions - **Asana (ASAN)**: Co-founder Justin Rosenstein sold 1.35 million shares for $27.9 million, with ownership declining from 1.53% to 0.57% [7] - **Elastic (ESTC)**: Similar patterns of non-10b5-1 sales were observed among executives [7] - **Nutanix (NTNX)**: Continued significant sales by Bain Capital [7] - **Sprinklr (CXM)**: Multiple executives sold shares not under 10b5-1 [7] Conclusion - The analysis indicates a trend of significant insider selling across the covered companies, with a notable lack of buy transactions, suggesting potential caution among insiders regarding future performance. The structured nature of buy transactions under Rule 10b5-1 may reflect strategic planning by insiders amidst market uncertainties.

One stock that might be an intriguing choice for investors right now is Sprinklr, Inc.(CXM) . This is because this security in the Technology Services space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Business S ...

Nine months ago, I rated Sprinklr ( NYSE: CXM ) as a hold. The stock's current price is essentially unchanged since then. At that time, I claimed "plenty of downside risks loom over the company and promise to leave the company and the stock rightDr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this sp ...

Sprinklr (NYSE: CXM ) has been on a challenging path for the greater part of the last 12–18 months. With sales execution significantly underperforming, the company saw material revenue growth deceleration and a more volatile margin profile. While the companyAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am n ...

Financial Performance - Revenue for the year ended January 31, 2025, was $796.4 million, up from $732.4 million in 2024 and $618.2 million in 2023, indicating a growth trend [70]. - The company reported an accumulated deficit of $626.1 million as of January 31, 2025, compared to $474.8 million in 2024, highlighting ongoing financial challenges [72]. - The company has incurred significant net losses in the past and may continue to do so as it invests in growth initiatives [72]. - The company’s stock price may be volatile, influenced by various market assumptions and the accuracy of its financial guidance [80]. - Customer renewal rates and the ability to attract new customers are critical for maintaining revenue growth and profitability [76]. - Customer renewal rates and expansion are vital for maintaining revenue, with fluctuations influenced by customer satisfaction and economic conditions [91]. Market and Competitive Landscape - The market for Unified-CXM solutions is rapidly evolving, and the company faces risks if it cannot effectively compete or adapt to market changes [68]. - The competitive landscape for Unified-CXM solutions is intensifying, with competitors potentially offering similar products at more attractive prices [88]. - The Unified-CXM platform's market acceptance is crucial for the company's growth, with potential adverse effects if demand does not meet expectations [86]. - The company aims to expand its customer base by targeting governmental agencies, which presents unique challenges and risks [77]. Investment and Growth Strategy - The company plans to invest significantly in its Unified-CXM platform, including enhancements to technology infrastructure and expansion of sales and marketing efforts [74]. - The company invests at least 10% of its revenue in research and development for the years ending January 31, 2025, and 2024 [114]. - The company may acquire or invest in businesses to expand its Unified-CXM platform, but such transactions may divert management's attention and result in additional dilution to stockholders [120]. - Future success depends on the ability to innovate and introduce new products, with potential delays or errors impacting customer satisfaction [99]. Operational Challenges - The company has experienced significant growth in the number of enterprises and end users, which has increased operational complexity and demands on resources [75]. - The company faces risks from reliance on third-party data centers, which could impair service delivery and harm business operations [95]. - The company may incur significant costs and service interruptions if data center agreements are not renewed on favorable terms [98]. - The ability to attract and retain qualified talent is critical, with competition for skilled professionals impacting operational execution [94]. Intellectual Property and Legal Risks - The company faces challenges in maintaining adequate intellectual property protections in foreign countries, which could impact its competitive position [133]. - The costs associated with protecting intellectual property rights are significant and can detract from resources available for development and marketing activities [138]. - The company may incur substantial expenses and liabilities due to claims of intellectual property infringement, which could adversely affect its financial condition [141]. - Indemnification provisions in customer agreements may expose the company to significant liabilities related to intellectual property claims [144]. - The company is subject to ongoing securities litigation, including a class action filed in August 2024 and a derivative action filed in March 2025 [148]. Regulatory and Compliance Risks - The company is subject to stringent data privacy and security obligations, with non-compliance potentially resulting in regulatory actions, litigation, and reputational harm [164]. - The company may face significant penalties if it fails to comply with the Health Insurance Portability and Accountability Act (HIPAA) when processing protected health information [166]. - Noncompliance with the EU General Data Protection Regulation (GDPR) can result in fines of up to €20 million or 4% of global annual turnover, and similar penalties apply under the UK GDPR [169]. - The company is exposed to increased scrutiny regarding third-party data suppliers, which may face compliance risks that could affect data availability and costs [173]. Cybersecurity Risks - The company faces significant cybersecurity risks, including potential vulnerabilities in its Unified-CXM platform and third-party systems, which could lead to operational disruptions and reputational harm [184][186][192]. - Cyber-attacks, particularly ransomware, are prevalent and can result in substantial operational interruptions, loss of data, and financial impacts [186][187]. - The company relies on third-party technologies for critical business operations, and any security incidents involving these third parties could adversely affect its operations and reputation [189][190]. Tax and Financial Regulations - The company is subject to evolving tax obligations across various jurisdictions, which could lead to substantial tax liabilities and affect its financial results [199][201]. - Recent legislation, such as the Inflation Reduction Act, may increase the company's tax liabilities, impacting its overall profitability [204]. - The company’s international operations are subject to complex tax regulations, and disagreements with tax authorities could result in additional taxes and penalties [202][203]. International Operations - Approximately 41% of the company's sales during the year ended January 31, 2025, were to customers outside of the Americas [123]. - The company expects to continue expanding its international operations, which may include opening additional offices and providing services in more languages [123]. - The company faces various risks in international operations, including increased management costs and compliance with non-U.S. data privacy laws [124]. Corporate Governance - As of January 31, 2025, holders of Class B common stock controlled approximately 89.3% of the voting power, concentrating control over corporate matters [212]. - The company’s amended and restated bylaws restrict stockholder actions and require a majority of the board to call special meetings [225]. - Certain amendments to the company's certificate of incorporation require approval from at least 66 2/3% of outstanding common stock [225].

On Thursday, Wall Street analysts rerated Sprinklr Inc CXM after the company reported its fourth-quarter report Wednesday.The company reported quarterly revenue of $202.54 million, up 4% year-over-year, topping the analyst consensus estimate of $200.58 million.Adjusted EPS of $0.10 topped the analyst consensus estimate of $0.07.Rosenblatt analyst Catharine Trebnick reiterated Sprinklr with a Buy and raised the price target from $10.50 to $12.Scotiabank analyst Allan Verkhovski maintained Sprinklr with a Sec ...