Financial Data and Key Metrics Changes - In Q4 FY '25, total revenue grew 4% year-over-year to $202.5 million, while subscription revenue increased 3% year-over-year to $182.1 million [8][31] - Non-GAAP operating income for the quarter was $25.9 million, resulting in a 13% non-GAAP operating margin [8][35] - For the full year FY '25, total revenue was $796.4 million, up 9% year-over-year, with subscription revenue of $717.9 million, up 7% [38] Business Line Data and Key Metrics Changes - Professional services revenue for Q4 was $20.5 million, contributing to the overall revenue [31] - The subscription revenue-based net dollar expansion rate was 104% in Q4, reflecting the impact of elevated churn experienced during FY '25 [32] - The number of customers generating at least $1 million in annual subscription revenue grew by 18% year-over-year to 149 [19][33] Market Data and Key Metrics Changes - The company reported a total remaining performance obligation (RPO) of $987.7 million, up 2% year-over-year, with current RPO at $612.5 million, up 4% [38] - Calculated billings for Q4 were $298.6 million, an increase of 10% year-over-year [37] Company Strategy and Development Direction - The company is focusing on transforming its business with a clear ambidextrous strategy and execution plan to grow its core while enhancing its service offerings [9][22] - A restructuring plan was implemented, including a 15% reduction in workforce to optimize expenses and reallocate resources [15][41] - The go-to-market coverage model has been redefined to focus on the top 400 customers, aiming to deepen relationships and enhance product innovation [18][20] Management's Comments on Operating Environment and Future Outlook - Management views FY '26 as a transitional year to stabilize the business and improve execution, with a focus on consistent delivery and customer satisfaction [27][28] - The macro environment is described as unpredictable, but the company believes it is well-positioned to handle challenges due to its strong balance sheet and prudent guidance [103][106] Other Important Information - The company is experiencing higher data and hosting costs, which are expected to negatively impact subscription gross margins by approximately 400 basis points for FY '26 [47] - Free cash flow generation for FY '25 was $59.2 million, with expectations of approximately $120 million for FY '26, representing a 100% increase [52] Q&A Session Summary Question: What avenues are driving cost efficiency? - Management emphasized a focus on making the business more efficient without sacrificing growth, optimizing investments in critical areas and restructuring the go-to-market model [56][61] Question: What is the impact of higher data costs on subscription gross margin? - The CFO noted that rising data costs are affecting gross margins, particularly due to increased expenses from data feeds and new data centers [69][71] Question: How is the company prioritizing new customer acquisition versus existing customers? - Management indicated a tactical focus on solidifying and expanding the existing customer base while also pursuing new logos, with a 70/30 emphasis on existing customers [78][81] Question: What are the challenges with implementation? - Management acknowledged historical implementation challenges and is working to standardize and improve the process to enhance customer satisfaction and upsell opportunities [82][86] Question: What is the hiring strategy for go-to-market resources? - The company plans to hire in the second half of the year to ensure new sales representatives are ramped up in time for FY '27, focusing on both account executives and technical success managers [94][100] Question: How is the macro environment affecting customer spending? - Management noted that while there is some uncertainty in the macro environment, they are not seeing significant issues in the pipeline and believe they can navigate through potential challenges [103][106] Question: How significant is the federal government business for Sprinklr? - Management stated that federal government business is very small and not material to the overall business [112] Question: Has anything in the transformation process been harder than expected? - Management indicated that while there are challenges, the technology and market demand are strong, and the focus is on improving execution and consistency [114][120]

Core Viewpoint - Sprinklr reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.12 per share a year ago, indicating a 42.86% earnings surprise [1] Financial Performance - The company achieved revenues of $202.54 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 1% and showing an increase from $194.21 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 4.4% since the beginning of the year, compared to a 5.3% decline 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] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $200.24 million, and for the current fiscal year, it is $0.37 on revenues of $819.21 million [7] - The outlook for the Technology Services industry, where Sprinklr operates, is favorable, ranking in the top 30% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Data and Key Metrics Changes - In Q4 FY 2025, total revenue grew 4% year over year to $202.5 million, while subscription revenue increased 3% year over year to $182.1 million [4][20] - Non-GAAP operating income for the quarter was $25.9 million, resulting in a 13% non-GAAP operating margin [4][23] - For the full year FY 2025, total revenue was $796.4 million, up 9% year over year, with subscription revenue of $717.9 million, up 7% [26] Business Line Data and Key Metrics Changes - The subscription revenue-based net dollar expansion rate in Q4 was 104, reflecting the impact of elevated churn experienced during FY 2025 [20] - The company had 149 customers generating at least $1 million in annual subscription revenue, an 18% increase year over year [21][12] - Professional services revenue for Q4 was $20.5 million, with gross margins for professional services at breakeven [20][22] Market Data and Key Metrics Changes - The company is focusing on the Enterprise segment, particularly the Global 2,000 to Global 5,000, as the primary target for go-to-market efforts [13] - The total remaining performance obligations (RPO) as of January 31, 2025, was $987.7 million, up 2% year over year [25] Company Strategy and Development Direction - The company is undergoing a transformation to improve efficiency and profitability, with a focus on optimizing the expense base and reallocating resources [5][9] - A new go-to-market coverage model has been implemented to enhance customer relationships and drive better performance [11][14] - The company aims to stabilize operations in FY 2026 while investing in key areas such as sales, customer implementations, and product innovation [10][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the operational and technical aspects but believes the transformation is well underway [6][18] - The macro environment is described as unpredictable, but the company has positioned itself to handle potential challenges [76][78] - FY 2026 is viewed as a transitional year, with expectations for improved execution and consistency in customer implementations [45][90] Other Important Information - The company has reduced its workforce by approximately 15% as part of its restructuring efforts [9][27] - Free cash flow for Q4 was $1.5 million, contributing to a healthy balance sheet with $483.5 million in cash and marketable securities [25][36] Q&A Session Summary Question: What avenues are driving cost efficiency? - Management emphasized a focus on making the business more efficient without sacrificing growth, optimizing investments in critical areas [39][44] Question: What is the impact of higher data costs on subscription gross margins? - Management noted that rising data costs and initial setup costs for new data centers are impacting gross margins [48][50] Question: How is the company balancing new customer acquisition with existing customer growth? - The strategy is to solidify the existing customer base while also pursuing new logos, focusing on significant enterprise accounts [55][59] Question: What are the challenges with implementation and how is the company addressing them? - Management acknowledged historical implementation challenges and is working to standardize and improve the process [61][66] Question: What is the hiring strategy for the go-to-market team? - The company plans to hire in the second half of the year to prepare for FY 2027, focusing on building a strong sales capacity [71][74] Question: How is the macro environment affecting customer spending? - Management indicated that while there is some uncertainty, the company is well-positioned to handle it and is seeing a good pipeline [76][78] Question: How significant is the federal government business for Sprinklr? - Management stated that the federal government business is very small and not material to overall operations [84]

Financial Data and Key Metrics Changes - Total revenue for Q4 FY 2025 was $202.5 million, representing a 4% year-over-year growth, while subscription revenue grew 3% year-over-year to $182.1 million [5][21] - Non-GAAP operating income was $25.9 million, resulting in a 13% non-GAAP operating margin for the quarter [5][24] - For the full year FY 2025, total revenue was $796.4 million, up 9% year-over-year, with subscription revenue of $717.9 million, up 7% [27] Business Line Data and Key Metrics Changes - Professional services revenue for Q4 was $20.5 million, with gross margins for subscription at 79% and professional services at breakeven, leading to a total non-GAAP gross margin of 71% [21][23] - The number of customers generating at least $1 million in annual subscription revenue increased by 18% year-over-year to 149 [22][27] Market Data and Key Metrics Changes - The calculated billings for Q4 were $298.6 million, an increase of 10% year-over-year [26] - Remaining performance obligations (RPO) stood at $987.7 million, up 2% year-over-year, while current RPO (CRPO) was $612.5 million, up 4% [26] Company Strategy and Development Direction - The company is focusing on transforming its business for durable growth and improved profitability, with FY 2026 identified as a transitional year [7][10] - A new go-to-market coverage model has been implemented to enhance customer relationships, particularly with the top 400 customers [12][14] - The company aims to optimize its cost structure and improve operating margins while investing in key strategic areas [10][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in execution and customer satisfaction but expressed optimism about the transformation underway [19][20] - The macro environment is described as unpredictable, but the company believes it is well-positioned to handle potential challenges [78][80] Other Important Information - The company underwent a restructuring that included a 15% reduction in workforce to better align costs with current business needs [10][29] - The company expects to generate approximately $120 million in free cash flow for FY 2026, representing a 100% increase compared to FY 2025 [37] Q&A Session Summary Question: What avenues are driving cost efficiency, and is there a risk of sacrificing growth? - Management emphasized that the focus is on improving efficiency without sacrificing growth, with significant cost reductions allowing for reinvestment in key areas [40][44] Question: How is the company focusing on new customer acquisition versus existing customers? - The strategy is to solidify the existing customer base while also pursuing new logos, particularly among larger enterprises [54][56] Question: What are the challenges related to implementation, and how is the company addressing them? - Management acknowledged historical implementation challenges and is working to standardize and improve the process to enhance customer satisfaction [61][63] Question: How is the company planning to reinvest in hiring, particularly for the go-to-market strategy? - The company plans to hire in the second half of the year to ensure sales representatives are ramped up for FY 2027 [71][73] Question: What is the company's exposure to the federal government market? - The federal government segment is described as very small and not material to the overall business [86] Question: Has anything in the transformation process been harder than expected? - Management indicated that while there are challenges, the technology and market demand are strong, and the focus is on improving execution and consistency [90][92]

Revenue Performance - Q4 total revenue was $202.5 million, representing a 4% year-over-year increase from $194.2 million[7]. - Q4 subscription revenue reached $182.1 million, up 3% year-over-year from $177.0 million[8]. - Fiscal year 2025 total revenue was $796.4 million, a 9% increase from $732.4 million in fiscal year 2024[8]. - Fiscal year 2025 subscription revenue was $717.9 million, up 7% from $668.5 million year-over-year[8]. - Total revenue for the three months ended January 31, 2025, was $202.539 million, a 4.3% increase from $194.207 million in the same period of 2024[20]. - Subscription revenue increased to $182.067 million for the three months ended January 31, 2025, compared to $176.960 million in the prior year, reflecting a growth of 2.5%[20]. - Sprinklr anticipates fiscal year 2026 total revenue between $821.5 million and $823.5 million[13]. - For Q1 fiscal 2026, the company expects total revenue between $201.5 million and $202.5 million[13]. Profitability Metrics - Q4 GAAP operating income was $10.5 million, down from $18.5 million in the same quarter last year, with a GAAP operating margin of 5%[8]. - Operating income for the three months ended January 31, 2025, was $10.459 million, down from $18.460 million in the same period of 2024, indicating a decrease of 43.4%[20]. - Net income for the year ended January 31, 2025, was $121.609 million, significantly up from $51.403 million in 2024, representing a year-over-year increase of 136.1%[22]. - Net income for the three months ended January 31, 2025, was $98,679 thousand, translating to $0.39 per share, compared to $21,143 thousand or $0.08 per share for the same period in 2024[25]. - The company reported a net income of $121,609 thousand for the year ended January 31, 2025, or $0.47 per share, compared to $51,403 thousand or $0.19 per share for the year ended January 31, 2024[25]. Cash Flow and Assets - Cash flow from operating activities for the year ended January 31, 2025, was $77.590 million, compared to $71.465 million in 2024, showing an increase of 8.6%[22]. - Free cash flow for the year ended January 31, 2025, was $59.157 million, compared to $51.140 million in 2024, reflecting an increase of 15.7%[24]. - Total current assets decreased to $854.097 million as of January 31, 2025, from $1,000.976 million a year earlier, a decline of 14.6%[18]. Stockholder Equity and Liabilities - Total liabilities increased to $572.136 million as of January 31, 2025, from $543.406 million a year earlier, an increase of 5.3%[18]. - The company’s total stockholders' equity decreased to $612.063 million as of January 31, 2025, from $679.704 million in 2024, a decline of 9.9%[18]. Non-GAAP Metrics - Non-GAAP net income per share for Q1 fiscal 2026 is projected to be approximately $0.10[13]. - Non-GAAP Net Income for the year ended January 31, 2025, was $95,332 thousand, or $0.37 per share, compared to $109,505 thousand or $0.41 per share for the year ended January 31, 2024[25]. - Non-GAAP Net Income for the three months ended January 31, 2025, was $27,041 thousand, or $0.11 per share, compared to $35,052 thousand or $0.13 per share for the same period in 2024[25]. Stock-Based Compensation - Stock-based compensation expense-related charges for the three months ended January 31, 2025, were $15,420 thousand, or $0.06 per share, compared to $13,859 thousand or $0.05 per share for the same period in 2024[25]. - Stock-based compensation expense-related charges for the year ended January 31, 2025, were $60,663 thousand, or $0.23 per share, compared to $57,902 thousand or $0.22 per share for the year ended January 31, 2024[25].

Financial Results - Sprinklr, Inc. is set to release its fourth-quarter financial results on March 12, with analysts expecting earnings of 7 cents per share, a decrease from 12 cents per share in the same period last year [1] - The company projects quarterly revenue of $200.59 million, up from $194.21 million a year earlier [1] Workforce Reduction - On February 6, Sprinklr announced plans to reduce its workforce by 15% [1] Stock Performance - Sprinklr shares fell 2.9% to close at $8.19 on Monday [2] Analyst Ratings - JMP Securities analyst Patrick Walravens reinstated a Market Outperform rating with a price target of $17 [4] - Rosenblatt analyst Catherine Trebnick maintained a Buy rating with a price target of $10.5 [4] - JP Morgan analyst Pinjalim Bora downgraded the stock from Overweight to Neutral with a price target of $11 [4] - Barclays analyst Raimo Lenschow maintained an Underweight rating and raised the price target from $7 to $9 [4] - Citigroup analyst Tyler Radke maintained a Neutral rating and cut the price target from $11 to $9 [4]

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

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]

Core Insights - Sprinklr reported revenue of $200.69 million for the quarter ended October 2024, reflecting a year-over-year increase of 7.7% and exceeding the Zacks Consensus Estimate of $196.55 million by 2.10% [1] - The company's EPS was $0.10, a decrease from $0.11 in the same quarter last year, but it surpassed the consensus EPS estimate of $0.08 by 25.00% [1] Financial Performance Metrics - Gross Margin for Subscription was reported at 80%, slightly below the average estimate of 81% from five analysts [3] - Gross Margin for Professional Services was -10%, better than the estimated -15% from four analysts [3] - Subscription Revenue reached $180.63 million, exceeding the average estimate of $178.16 million, with a year-over-year increase of 6% [3] - Professional Services Revenue was $20.06 million, surpassing the average estimate of $18.41 million, showing a significant year-over-year growth of 26.4% [3] Stock Performance - Sprinklr's shares have returned +15.6% over the past month, outperforming the Zacks S&P 500 composite's +5.8% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]