NEW YORK - Sprinklr Inc. (NYSE: CXM), a leader in customer experience management software, has reported a 13% increase in total revenue for its first fiscal quarter ended April 30, 2024, reaching $196.0 million. Subscription revenue, a critical indicator of the company's business health, also climbed by 12% to $177.4 million compared to the same period last year.
The company's financial results reflect a positive trajectory with a net cash flow from operating activities of $41.7 million and a free cash flow of $36.2 million. Sprinklr's robust client base is evident in its 138 customers who contribute over $1 million each, marking a 20% year-over-year growth.
In an effort to further enhance shareholder value, Sprinklr has expanded its 2024 Share Repurchase Program by an additional $100 million. As of May 31, 2024, the company has already repurchased over 14 million shares under the program.
The company's leadership team is also evolving, with the appointment of Trac Pham as Co-CEO alongside Founder and Co-CEO Ragy Thomas. This strategic move aims to synergize technical innovation with operational excellence to foster growth and scalability.
Sprinklr's GAAP operating income for the first quarter stood at $5.7 million, a significant improvement from a $3.2 million operating loss reported in the previous year. The non-GAAP operating income also saw a substantial rise to $20.4 million from $11.0 million year-over-year.
For the second fiscal quarter ending July 31, 2024, Sprinklr anticipates subscription revenue to be between $177.5 million and $178.5 million, with total revenue projected between $194 million and $195 million. The company's outlook for non-GAAP operating income ranges from $16.5 million to $17.5 million, with non-GAAP net income per share expected to be between $0.06 and $0.07.
Looking ahead to the full fiscal year ending January 31, 2025, Sprinklr forecasts subscription revenue between $714 million and $716 million, with total revenue anticipated between $779 million and $781 million. The company projects a non-GAAP operating income between $104 million and $105 million, and non-GAAP net income per share between $0.40 and $0.41.
Sprinklr's commitment to delivering a unified customer experience management platform is underscored by its continued investment in new products and AI features. The company's financial results and strategic initiatives, including the expansion of its share repurchase program and the appointment of a new Co-CEO, are based on a press release statement from the company.
In other recent news, Sprinklr, a notable customer experience management platform, has appointed Amitabh Misra as its new Chief Technology Officer (CTO), effective April 1, 2024. The newly appointed CTO, who previously served as the Vice President of Engineering at Adobe (NASDAQ:ADBE), will lead the company's global research and development efforts. This strategic move comes as Sprinklr seeks to advance its platform and navigate the evolving landscape of enterprise solutions.
In financial news, Rosenblatt Securities has revised its outlook on Sprinklr, raising the price target while maintaining a Buy rating. This adjustment follows the company's recent financial disclosures, which suggested a 10% year-over-year increase in revenue and an 11% rise in subscription figures for fiscal year 2025.
Furthermore, KeyBanc has initiated coverage on Sprinklr with an Overweight rating, highlighting its position as a leader in the Social Media Management software market. KeyBanc's analysis suggests that Sprinklr's comprehensive features, coupled with its proactive integration of AI, position it favorably in a market segment with high customer value and limited competition.
These recent developments reflect a renewed sense of confidence in Sprinklr's capacity to execute its business plan effectively in the forthcoming fiscal periods.
InvestingPro Insights
Sprinklr Inc. (NYSE: CXM) has shown a promising start to the fiscal year with strong revenue growth and strategic initiatives aimed at enhancing shareholder value. According to InvestingPro data, Sprinklr holds a market capitalization of $2.93 billion and has demonstrated an impressive gross profit margin of 75.5% over the last twelve months as of Q4 2024. This financial stability is further reflected in the company's revenue growth of 18.47% during the same period, signaling robust business performance.
An InvestingPro Tip suggests that Sprinklr is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 57.05 and a PEG ratio of 0.31, which could indicate the stock's potential for future earnings expansion. Moreover, despite recent market volatility, Sprinklr's liquid assets exceed its short-term obligations, providing the company with a solid financial cushion.
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