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]

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Company Overview - Sprinklr (CXM) shares increased by 6.6% to close at $7.61, with trading volume significantly higher than usual, compared to a 2.3% gain over the past four weeks [1][2] - The company is expanding its customer base, adding clients such as Ford, UBS, T-Mobile, Planet Fitness, and Grupo Bimbo, while enhancing customer experience through AI-powered solutions [2] Financial Performance - The upcoming quarterly earnings report is expected to show earnings of $0.08 per share, reflecting a year-over-year decline of 27.3%, while revenues are projected to be $196.55 million, an increase of 5.5% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Sprinklr is part of the Zacks Technology Services industry, where another company, Symbotic Inc. (SYM), saw an 8% increase in its stock price, closing at $31.63, with a 25.3% return over the past month [4] - Symbotic Inc. has a consensus EPS estimate of $0.03 for its upcoming report, representing a significant year-over-year increase of 137.5%, but currently holds a Zacks Rank of 4 (Sell) [5]

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Sprinklr, Inc. due to a class action complaint filed on August 13, 2024, concerning possible breaches of fiduciary duties by the board of directors [1] Financial Performance - On December 6, 2023, Sprinklr reported strong Q3 2024 results but subsequently reduced its growth estimates for Q4 and full year 2025, citing "subscription renewal pressures" and "over-rotation" in sales strategy [2] - Following the announcement of reduced estimates, Sprinklr's stock price fell by $5.59 per share, approximately 34%, closing at $11.11 per share [2] - On June 5, 2024, Sprinklr again lowered its growth expectations, cutting fiscal year 2025 projections by another 3% to 7% annual growth, attributing this to reduced customer retention and macroeconomic challenges [3] - The stock price dropped from $10.84 per share on June 5, 2024, to $9.20 per share on June 6, 2024, marking a decline of over 15% in one day [3]

NEW YORK, Oct. 15, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Sprinklr, Inc. (NYSE: CXM) between March 29, 2023 and June 5, 2024, both dates inclusive (the "Class Period"), of the important October 15, 2024 lead plaintiff deadline. SO WHAT: If you purchased Sprinklr securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO ...

NEW YORK, Oct. 14, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Sprinklr, Inc. (NYSE: CXM). Shareholders who purchased shares of CXM during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/sprinklr-loss-submission-form/?id=107860&from=4 CLASS PERIOD: March 29, 2023 to June 5, 202 ...

Core Viewpoint - The Sprinklr class action lawsuit alleges that the company and its executives made misleading statements regarding its performance and growth prospects, leading to significant stock price declines during the class period [3][4][5]. Company Overview - Sprinklr, Inc. provides enterprise cloud software products globally [2]. Allegations of the Lawsuit - The lawsuit claims that Sprinklr faced difficulties in scaling its Contact Center as a Service market, which contributed to a slowdown in growth for its core products [3]. - On December 6, 2023, Sprinklr reported a sequential decrease in the number of customers spending over $1 million, attributing this to macroeconomic conditions, and reduced its fiscal 2025 growth outlook from 16% to 10%, resulting in a stock price drop of over 33% [4]. - On June 5, 2024, Sprinklr further lowered its fiscal year 2025 growth projections to 7%, citing reduced customer retention and macro headwinds, which led to an additional stock price decline of over 15% [5]. Legal Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Sprinklr securities during the class period to seek appointment as lead plaintiff in the lawsuit, representing the interests of the class [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud cases, having recovered $6.6 billion for investors in class action cases, and is recognized for securing significant monetary relief for investors [7].