Sprinklr(CXM) - 2024 Q4 - Annual Report

Employee and Human Capital - As of January 31, 2024, the company had 3,869 employees, with 787 based in the United States and 3,082 internationally, including 2,276 in India[101] - The company emphasizes employee engagement, development, and retention as key components of its human capital management strategy[103] Financial Performance - Total revenue for the fiscal year ended January 31, 2024, was $732.36 million, a 18.4% increase from $618.19 million in the previous year[365] - Subscription revenue reached $668.54 million, up 21.8% from $548.65 million in the prior year[365] - The company reported a net income of $51.40 million for the fiscal year 2024, compared to a net loss of $55.74 million in fiscal year 2023[365] - Operating income for the year was $33.95 million, a significant improvement from an operating loss of $51.22 million in the previous year[365] - Research and development expenses increased to $91.29 million, up 19.2% from $76.66 million in the prior year[365] Assets and Liabilities - Total assets increased to $1,223,110 thousand as of January 31, 2024, up from $1,024,991 thousand in 2023, representing a growth of approximately 19.4%[336] - Total current assets rose to $1,000,976 thousand, compared to $862,529 thousand in the previous year, marking an increase of about 16.1%[336] - Total liabilities increased to $543,406 thousand, compared to $475,659 thousand in 2023, indicating a rise of about 14.3%[336] - Total stockholders' equity increased to $679,704 thousand from $549,332 thousand, reflecting a growth of approximately 23.6%[336] Cash Flow and Investments - Net cash provided by operating activities was $71,465 thousand for the year ended 2024, compared to a cash outflow of $32,922 thousand in 2023[346] - Net cash used in investing activities was $110,570 thousand, a decrease from $193,494 thousand in the previous year[346] - Proceeds from the issuance of common stock upon the exercise of stock options amounted to $43,333 thousand, compared to $24,740 thousand in 2023[346] Market and Competitive Position - The company has a strong presence in India, which is considered a competitive advantage due to access to talent at a lower cost[101] - The company operates in a single segment, focusing on its Customer Experience Management Platform, with no discrete financial information provided by product or geography[353] - As of January 31, 2024, the company had 1,735 customers, including over 60% of the Fortune 100[490] Risks and Compliance - The company faces significant risks related to foreign currency exchange rate fluctuations, which could adversely affect its financial condition and results of operations[91] - The company has faced risks related to compliance with international laws and regulations, which could increase operational costs[91] - The company has settled past claims related to intellectual property, indicating ongoing legal risks in its operations[95] Technology and Innovation - The platform captures over 450 million conversations and makes over 10 billion AI predictions daily, handling more than 50 million customer cases each month[492] - Sprinklr AI+ combines proprietary AI with generative AI models to enhance productivity across customer-facing functions, leveraging data from over 30 digital channels[492] - The Unified-CXM platform is designed to comply with industry security standards, including ISO 27001 and PCI-DSS Level 1, ensuring robust data protection[492] - Sprinklr's AI capabilities are available in 149 languages, allowing global customers to derive insights and improve customer interactions[492] Revenue Recognition and Deferred Revenue - The Company recognized revenue of $322.1 million, $276.4 million, and $216.4 million for the years ended January 31, 2024, 2023, and 2022, respectively, from deferred revenue balances[439] - Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied[439] Stock and Options - The expected term for stock options is 6.1 years, with a risk-free interest rate of 3.5% and expected volatility of 60.1%[100] - The Company utilizes the Black-Scholes option pricing model to estimate the fair value of stock-based compensation[430] Miscellaneous Financial Information - The fair value of common stock as of January 31, 2024, was $12.85, compared to a range of $10.96 to $14.02 in the previous year[100] - The allowance for credit losses increased to $5.267 million as of January 31, 2024, from $3.156 million in 2023[418] - The Company has not recorded any goodwill impairment charges in the years ended January 31, 2024, 2023, or 2022[420]