On June 5, 2024, Sprinklr Inc (CXM, Financial) released its 8-K filing for the first quarter of fiscal year 2025, showcasing a robust financial performance that surpassed analyst expectations. The company reported total revenue of $196.0 million, a 13% increase year-over-year, and a GAAP net income per share of $0.04, compared to the estimated earnings per share of $0.03 and estimated revenue of $194.37 million.
Company Overview
Sprinklr Inc is a leading enterprise software provider that enables customer-facing functions across the front office to collaborate and communicate across digital channels. Its product suite includes Sprinklr Service, Sprinklr Social, Sprinklr Insights, and Sprinklr Marketing. The company operates globally, with the majority of its revenue derived from the Americas.
Performance Highlights
Sprinklr Inc (CXM, Financial) reported total revenue of $196.0 million for Q1 FY25, up from $173.4 million in the same period last year. Subscription revenue also saw a significant increase, reaching $177.4 million, a 12% year-over-year growth. The company achieved a GAAP operating income of $5.7 million, a notable improvement from the operating loss of $3.2 million reported in Q1 FY24.
“Despite operating in a more challenging macro environment, we generated strong free cash flow in Q1 and we’re innovating with new products and AI features. While the changes and initiatives we’re implementing will take several quarters to work through, we believe we have the right strategy and leaders in place,” said Ragy Thomas, Sprinklr Founder and Co-CEO.
Financial Achievements
Sprinklr Inc (CXM, Financial) demonstrated strong financial health with net cash provided by operating activities amounting to $41.7 million and free cash flow of $36.2 million. The company also reported an increase in its customer base, with 138 customers generating over $1 million in revenue, a 20% year-over-year growth.
Key Financial Metrics
| Metric | Q1 FY25 | Q1 FY24 |
|---|---|---|
| Total Revenue | $196.0 million | $173.4 million |
| Subscription Revenue | $177.4 million | $157.7 million |
| GAAP Operating Income | $5.7 million | $(3.2) million |
| Non-GAAP Operating Income | $20.4 million | $11.0 million |
| GAAP Net Income Per Share | $0.04 | $0.01 |
| Non-GAAP Net Income Per Share | $0.09 | $0.06 |
Analysis and Outlook
Sprinklr Inc (CXM, Financial) has shown resilience and adaptability in a challenging macroeconomic environment. The company's focus on innovation and strategic leadership changes, including the appointment of Trac Pham as Co-CEO, are expected to drive future growth and operational efficiency. The strong financial performance, particularly in subscription revenue and free cash flow, underscores the company's robust business model and market position.
For the second fiscal quarter ending July 31, 2024, Sprinklr Inc (CXM, Financial) has provided guidance with subscription revenue expected between $177.5 million and $178.5 million, and total revenue between $194 million and $195 million. The company also anticipates non-GAAP net income per share to be between $0.06 and $0.07.
Overall, Sprinklr Inc (CXM, Financial) continues to demonstrate strong financial health and growth potential, making it a noteworthy consideration for value investors and stakeholders in the enterprise software industry.
Explore the complete 8-K earnings release (here) from Sprinklr Inc for further details.
