Sprinklr Inc. Reports Q2 Earnings Results and Future Outlook
Sprinklr Inc. Reports Second-Quarter Earnings
Sprinklr Inc. (NYSE: CXM) announced its financial results for the second quarter, highlighting key performance metrics that reveal both opportunities and challenges in its current operations. The release of these results came after trading concluded on Wednesday, sparking interest among investors and analysts alike.
Quarterly Earnings Overview
The company registered earnings of six cents per share, narrowly falling short of the predictions held by analysts who anticipated earnings of seven cents per share. Revenue for the quarter held at approximately $197.21 million, surpassing expectations by 1.39% compared to the consensus estimate of $194.5 million. This increase also signals a commendable growth of 10.5% when contrasted with the earnings reported for the same quarter last year.
Revenue Breakdown
Notably, subscription revenue soared to $177.9 million, reflecting a year-over-year increase of 9%. Furthermore, operating activities generated net cash of $21.3 million while free cash flow achieved a strong position at $16.5 million. Other valuable metrics included a rise in Remaining Performance Obligations (RPO) and Current Remaining Performance Obligations (cRPO) of 10% and 9% respectively, alongside a surge in high-value customers, with the count of $1 million customers climbing to 145, representing a 21% increase year-over-year.
Management Insights
Ragy Thomas, Sprinklr’s founder and co-CEO, expressed optimism despite the hurdles faced in the market environment. He emphasized the firm’s strategy focused on leveraging their renowned AI-driven platform to solidify customer acquisition and maintain growth. “We are committed to reinforcing our foundation to enhance growth and profitability, a journey that will span several quarters,” Thomas noted in his remarks.
Future Projections
Looking ahead, Sprinklr projects third-quarter revenue to range between $196 million and $197 million, with earnings approximating eight cents per share. Additionally, fiscal-year revenue expectations have been revised upward from between $779 million and $781 million to a new band of $785 million to $787 million, which surpasses the previous market estimate of $780.39 million. However, the earnings forecast saw a reduction, shifting from a range of 40 to 41 cents down to a revised estimate of 32 to 33 cents per share, below the initial predictions of 41 cents.
Stock Performance
As investors reacted to the news, shares of Sprinklr experienced a decline, with a reported after-hours drop of 3.38%, putting the share price at $8.30 shortly after the results were released. Market analysts will be keeping a close watch on how the adjustments in revenue forecasts and earnings outlook will influence trading in the upcoming sessions.
Frequently Asked Questions
What were Sprinklr's Q2 earnings per share?
Sprinklr reported earnings of six cents per share, missing the analyst consensus of seven cents.
How did Sprinklr's revenue perform in Q2?
The company generated revenue of $197.21 million, exceeding predictions and growing by 10.5% year-over-year.
What is the outlook for the next quarter?
Sprinklr expects third-quarter revenue between $196 million and $197 million, with earnings of around eight cents per share.
How has Sprinklr's customer base changed?
Sprinklr reported a notable increase in high-value customers, reaching 145 customers contributing $1 million or more annually.
What challenges is Sprinklr currently facing?
Despite growth, Sprinklr faces market challenges that necessitate strategic adjustments to enhance growth and profitability.
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