Sprinklr(US:CXM)2025-06-05 20:08Revenue Performance - Total revenue for the three months ended April 30, 2025, was $205.5 million, an increase from $196.0 million in the same period of 2024, representing a growth of 4.8%[161] - Subscription revenue increased to $184.1 million in Q1 2025 from $177.4 million in Q1 2024, reflecting a growth of 3.8%[161] - Total revenue for the three months ended April 30, 2025, was $205.5 million, a 5% increase from $196.0 million in the same period of 2024[163] - Subscription revenue increased by 4% to $184.1 million, while professional services revenue rose by 15% to $21.4 million[163][164] Profitability and Expenses - Gross profit for the three months ended April 30, 2025, was $142.9 million, with a gross margin of approximately 69.5%[161] - Operating expenses totaled $144.6 million for Q1 2025, up from $139.1 million in Q1 2024, driven by increased sales and marketing expenses[161] - The company reported a net loss of $1.6 million for the three months ended April 30, 2025, compared to a net income of $10.6 million in the same period of 2024[161] - Research and development expenses were $22.8 million for Q1 2025, slightly up from $22.5 million in Q1 2024, reflecting ongoing investment in product development[161] - Sales and marketing expenses decreased to $71.1 million in Q1 2025 from $87.5 million in Q1 2024, due to recent restructuring efforts[161] - General and administrative expenses increased by 18% to $34.4 million, representing 17% of total revenue[171] - Restructuring expenses amounted to $16.3 million, constituting 8% of total revenue[172] - Non-GAAP net income for the three months ended April 30, 2025, was $32.3 million, or $0.13 per share, compared to $25.8 million, or $0.09 per share in 2024[181] Customer Metrics - The company had 146 large customers as of April 30, 2025, an increase from 138 large customers a year earlier, indicating growth in its enterprise customer base[139] Future Revenue Visibility - Remaining Performance Obligation (RPO) as of April 30, 2025, was $943.2 million, with Current RPO (cRPO) at $596.8 million, indicating strong future revenue visibility[141] Cash Flow and Liquidity - Cash provided by operating activities increased to $83.8 million in Q2 2025 from $41.7 million in Q2 2024, driven by a significant decrease in accounts receivable[192] - Free cash flow for the three months ended April 30, 2025, was $80.7 million, up from $36.2 million in the same period of 2024[190] - As of April 30, 2025, the company had $126.4 million in cash and cash equivalents and $443.8 million in marketable securities, indicating strong liquidity[182] Financial Obligations and Shareholder Returns - The company has contractually obligated expenditures totaling $324.8 million through fiscal year 2030, with $107.1 million due within the next twelve months[186] - A share repurchase program was authorized for up to $150 million of Class A common stock, reflecting the company's commitment to returning value to shareholders[187] Investment Activities and Future Outlook - Cash used in investing activities for the three months ended April 30, 2025, was $108.0 million, primarily due to purchases of marketable securities[194] - The company expects free cash flow to fluctuate in future periods due to changes in operating expenses and continued investments in growth[191] - The company may finance future acquisitions through cash, debt, or stock, maintaining financial flexibility for strategic growth initiatives[189] Market and Performance Metrics - Net Dollar Expansion Rate (NDE) for the trailing 12-month period ending April 30, 2025, was 101.8%, down from 114.6% in the previous year, attributed to increased churn and down-selling[142] - Total costs of revenue increased by 23% to $62.6 million, with subscription costs rising by 30% to $42.2 million[166] - Gross margin for subscription decreased from 82% to 77%, while gross margin for professional services improved from 0% to 4%[168] - Research and development expenses were $22.8 million, representing 11% of total revenue, a slight increase from 12% in the prior year[169] - Sales and marketing expenses decreased by 19% to $71.1 million, accounting for 35% of total revenue, down from 45%[170] - Other income decreased by 8% to $6.9 million, primarily due to a decline in interest income[173] - Provision for income taxes increased by 162% to $6.7 million, representing 3% of total revenue[174]