On September 4, 2024, Sprinklr Inc (CXM, Financial) released its 8-K filing for the second fiscal quarter ended July 31, 2024. Sprinklr Inc, a leading provider of enterprise software for customer-facing functions, reported a total revenue of $197.2 million, surpassing the analyst estimate of $194.50 million. However, the company's earnings per share (EPS) came in at $0.01, falling short of the estimated $0.02.
Company Overview
Sprinklr Inc is engaged in providing enterprise software that enables every customer-facing function across the front office, from Customer Care to Marketing, to collaborate across internal silos, and communicate across digital channels. Its products include Sprinklr Service, Sprinklr Social, Sprinklr Insights, and Sprinklr Marketing. The company operates in the Americas, EMEA, and other countries, deriving maximum revenue from the Americas.
Performance and Challenges
Sprinklr Inc reported a total revenue of $197.2 million for Q2 FY2025, an 11% increase year-over-year. Subscription revenue also saw a 9% increase, reaching $177.9 million. Despite these positive revenue figures, the company faced challenges, including a $10.1 million credit loss charge, which impacted its profitability. The GAAP operating loss for the quarter was $0.1 million, compared to an operating income of $5.5 million in the same period last year.
Financial Achievements
Sprinklr Inc's financial achievements include a net cash provided by operating activities of $21.3 million and a free cash flow of $16.5 million for the quarter. The company also reported an increase in its customer base, with 145 customers generating over $1 million in revenue, a 21% year-over-year increase. These achievements are crucial for a software company like Sprinklr Inc, as they indicate strong customer retention and efficient cash management.
Key Financial Metrics
Below are some key financial metrics from Sprinklr Inc's Q2 FY2025 earnings report:
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Total Revenue | $197.2 million | $178.5 million |
| Subscription Revenue | $177.9 million | $163.5 million |
| GAAP Operating (Loss) Income | $(0.1) million | $5.5 million |
| Non-GAAP Operating Income | $15.2 million | $21.3 million |
| GAAP Net Income Per Share | $0.01 | $0.04 |
| Non-GAAP Net Income Per Share | $0.06 | $0.09 |
Analysis
Sprinklr Inc's Q2 FY2025 performance highlights the company's ability to grow its revenue despite market challenges. The increase in subscription revenue and the addition of high-value customers are positive indicators of the company's market position and product value. However, the decline in operating income and the credit loss charge are areas of concern that may need addressing to ensure sustained profitability.
Overall, Sprinklr Inc's financial results for Q2 FY2025 show a mixed performance, with strong revenue growth but challenges in maintaining profitability. Investors and stakeholders will be keen to see how the company addresses these challenges in the coming quarters.
Explore the complete 8-K earnings release (here) from Sprinklr Inc for further details.
