Sprinklr(US:CXM) Benzingaยท2025-06-05 17:02Core Viewpoint - Sprinklr's recent results indicate progress in its transformation, despite challenges with customer churn and down-sell activity [1][2]. Financial Performance - Total revenue reached $205.5 million, reflecting a 5% year-over-year increase, surpassing the Street estimate of $201.8 million and guidance of $201.5 million to $202.5 million [6]. - Subscription revenue increased by 4% year-over-year to $184.1 million, accounting for 90% of total revenue and exceeding consensus estimates by $1 million [6]. - Professional services revenue was $21.4 million, up 15% year-over-year, beating the analyst's estimate by approximately $2 million [6]. - Operating income stood at $36.7 million, representing an 18% margin, which exceeded the analyst estimate of $32.3 million (16% margin) and guidance of $31.5 million to $32.5 million [6]. - Adjusted EPS was 12 cents, beating the Street estimate of 10 cents [6]. Customer Dynamics - Net Revenue Retention (NRR) declined to 102% from 104% in the previous quarter, attributed to ongoing customer churn and down-sell activity [2]. - The number of customers generating over $1 million in subscription revenue grew by 6% year-over-year to 146, but saw a quarter-over-quarter decline from 149 due to limited renewals and reduced up-sell/cross-sell activity [2]. Strategic Initiatives - Management is focusing on reducing churn through the "Project Bear Hug" initiative, which has engaged over 200 of its top 500 customers and is showing positive results [3]. - Standardization of implementation processes has reached 80% consistency to enhance customer success [3]. - A comprehensive go-to-market overhaul, including new sales pod structures and enablement programs, is expected to gain momentum in the second half of 2026, positioning Sprinklr for potential acceleration in fiscal 2027 and 2028 [4]. Market Reaction - CXM shares increased by 0.55% to $9.11 during the last check on Thursday [5].