NEW YORK - Sprinklr Inc. (NYSE: CXM), a leading unified customer experience management platform, reported its first-quarter earnings, surpassing analyst expectations with an adjusted EPS of $0.09, $0.02 higher than the consensus of $0.07.
However, the company's stock fell sharply by 17% following its second-quarter earnings guidance, which was below market expectations.
The company reported a solid first quarter with total revenue reaching $196 million, a 13% increase YoY and slightly above the analyst estimate of $194.37 million.
Subscription revenue, a key metric for the company's business model, rose to $177.4 million, marking a 12% rise YoY. Sprinklr's growth also reflected in its operating income, which turned positive at $5.7 million compared to a loss the previous year, and its adjusted operating margin improved from 6% to 10%.
Despite these positive indicators, investor sentiment was dampened by the company's second-quarter guidance. Sprinklr forecasts an adjusted EPS between $0.06 and $0.07 for Q2 2025, which is below the analyst consensus of $0.09. Additionally, the company expects Q2 revenue to be in the range of $194 to $196 million, falling short of the expected $196.9 million.
The company's full-year outlook also suggests a cautious stance, with subscription revenue projected between $714 million and $716 million, and total revenue anticipated to be between $779 million and $781 million. The midpoint of the full-year guidance for adjusted operating income is set at $104.5 million, with an adjusted EPS between $0.40 and $0.41.
Sprinklr's Founder and Co-CEO, Ragy Thomas, commented on the results, stating, "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." He also expressed confidence in the company's strategy and leadership, highlighting the appointment of Trac Pham as Co-CEO to drive growth and scale.
Sprinklr's financial health remains stable, with $610.1 million in cash, cash equivalents, and marketable securities as of April 30, 2024. The company also highlighted its strong free cash flow generation and the increase in its $1 million customers by 20% YoY, demonstrating its continued appeal to large enterprise clients.
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