Sprinklr Inc. Reports Strong Revenue Growth Despite Earnings Miss
Sprinklr Inc. (NYSE:CXM) recently released its financial results for the second quarter. The customer experience management platform exceeded revenue expectations but did not meet earnings forecasts. As a result, the company's stock price experienced a 3% decline following the announcement.
Quarterly Financial Performance
During the latest quarter, Sprinklr reported adjusted earnings per share of $0.06, which fell short of analysts' expectations of $0.07. On a positive note, the company's revenue for the quarter reached $197.2 million, surpassing the consensus estimate of $194.51 million and demonstrating a robust 11% growth compared to the same quarter last year.
Customer Base Expansion
Ragy Thomas, the Founder and Co-CEO of Sprinklr, shared his excitement about the company's results, stating, "In the second quarter, we continued to expand our customer base with our industry-recognized AI-powered platform and delivered our 7th consecutive quarter of free cash flow." This statement underscores Sprinklr's dedication to improving its services and maintaining a strong financial path.
Future Outlook and Guidance
Looking forward, Sprinklr has set its revenue expectations for the third quarter between $196 million and $197 million, which is above the current analyst predictions of $193.8 million. However, despite this positive revenue outlook, the company's earnings per share guidance is estimated at around $0.08, which is below the consensus estimate of $0.12.
Revised Full-Year Projections
Additionally, Sprinklr has revised its full-year revenue outlook, now projecting it to be between $785 million and $787 million, an improvement from previous forecasts and ahead of Wall Street's expectations of $780.4 million. Conversely, the company has lowered its full-year earnings guidance to an EPS range of $0.32 to $0.33, which is below the analyst estimate of $0.41.
Subscription Revenue Growth
In terms of subscription revenue, Sprinklr reported a year-over-year increase of 9%, totaling $177.9 million for the second quarter. The company also highlighted significant growth in its client base, concluding the quarter with 145 customers who each contributed over $1 million in annual revenue, marking a 21% increase from the previous year.
Frequently Asked Questions
What were Sprinklr's earnings per share for the second quarter?
Sprinklr reported adjusted earnings per share of $0.06 for the second quarter.
How much revenue did Sprinklr generate in the latest quarter?
Sprinklr generated revenue of $197.2 million, surpassing analyst expectations.
What is Sprinklr's revenue outlook for the full year?
Sprinklr projects its full-year revenue to be between $785 million and $787 million.
How did Sprinklr's stock perform after the earnings report?
Following the earnings report, Sprinklr's stock dipped by 3%.
What growth did Sprinklr see in its subscription revenue?
Sprinklr's subscription revenue grew by 9% year-over-year, amounting to $177.9 million in the second quarter.
