- Q4 Total Revenue of $194.2 million, up 17%
year-over-year
- Q4 Subscription Revenue of $177.0 million, up 19%
year-over-year
- Q4 net cash provided by operating activities of $17.3 million
and free cash flow* of $12.3 million in Q4
- RPO and cRPO up 34% and 21% year-over-year, respectively
- 126 $1 million customers, up 17% year-over-year
- In March 2024, Board authorized an incremental $100 million to
the existing stock buyback program
Sprinklr (NYSE: CXM), the unified customer experience management
(Unified-CXM) platform for modern enterprises, today reported
financial results for its fourth quarter and fiscal year ended
January 31, 2024.
“We are pleased with Sprinklr’s fourth quarter performance and
overall success in FY 24. Our vision is clear: to unify
customer-facing teams on an AI-powered platform. We’re
strengthening our foundation and recruiting top-tier leaders to
fuel our next phase of growth. With strong conviction, we believe
we are the natural third or fourth front office platform for global
brands at the forefront of exceptional customer experience,” said
Ragy Thomas, Founder and CEO at Sprinklr.
Fourth Quarter Fiscal 2024 Financial Highlights
- Revenue: Total revenue for the fourth quarter was $194.2
million, up from $165.3 million one year ago, an increase of 17%
year-over-year. Subscription revenue for the fourth quarter was
$177.0 million, up from $148.3 million one year ago, an increase of
19% year-over-year.
- Operating Income (Loss) and Margin*: Fourth quarter GAAP
operating income was $18.5 million, compared to an operating loss
of $1.8 million one year ago. Non-GAAP operating income for the
fourth quarter was $32.4 million, compared to non-GAAP operating
income of $14.3 million one year ago. For the fourth quarter, GAAP
operating margin was 10% and non-GAAP operating margin was
17%.
- Net Income (Loss) Per Share*: Fourth quarter net income
per share, basic was $0.08, compared to net loss per share, basic
of $0.00 in the fourth quarter of fiscal year 2023. Non-GAAP net
income per share, basic for the fourth quarter was $0.13, compared
to non-GAAP net income per share, basic of $0.06 in the fourth
quarter of fiscal year 2023
- Cash, Cash Equivalents and Marketable Securities: Total
cash, cash equivalents and marketable securities as of January 31,
2024 was $662.6 million.
Full Year Fiscal 2024 Financial Highlights
- Revenue: Total revenue for fiscal year 2024 was $732.4
million, up from $618.2 million one year ago, an increase of 18%
year-over-year. Subscription revenue for fiscal year 2024 was
$668.5 million, up from $548.6 million one year ago, an increase of
22% year-over-year.
- Operating Income (Loss) and Margin*: Fiscal year 2024
operating income was $33.9 million, compared to an operating loss
of $51.2 million one year ago. Non-GAAP operating income for fiscal
year 2024 was $92.0 million, compared to non-GAAP operating income
of $6.0 million one year ago. For fiscal year 2024, GAAP operating
margin was 5% and non-GAAP operating margin was 13%.
- Net Income (Loss) Per Share*: Fiscal year 2024 net
income per share, basic was $0.19, compared to net loss per share,
basic of $0.21 in fiscal year 2023. Non-GAAP net income per share,
basic for fiscal year 2024 was $0.41, compared to non-GAAP net
income per share, basic of $0.01 in fiscal year 2023.
* Free cash flow, non-GAAP operating income, non-GAAP operating
margin and non-GAAP net income per share are non-GAAP financial
measures defined under “Non-GAAP Financial Measures,” and are
reconciled to net cash provided by operating activities, operating
income (loss), net income (loss) or net income (loss) per share, as
applicable, the closest comparable GAAP measure, at the end of this
release.
Financial Outlook
Sprinklr is providing the following guidance for the first
fiscal quarter ending April 30, 2024:
- Subscription revenue between $177.5 million and $178.5
million.
- Total revenue between $194 million and $195 million.
- Non-GAAP operating income between $19.5 million and $20.5
million.
- Non-GAAP net income per share of approximately $0.07, assuming
289 million diluted weighted-average shares outstanding.
Sprinklr is providing the following guidance for the full fiscal
year ending January 31, 2025:
- Subscription revenue between $740.5 million and $741.5
million.
- Total revenue between $804.5 million and $805.5 million.
- Non-GAAP operating income between $104 million and $105
million.
- Non-GAAP net income per share between $0.38 and $0.39, assuming
291 million diluted weighted-average shares outstanding.
Non-GAAP Financial Measures
This press release and the accompanying tables contain the
following non-GAAP financial measures:
- Non-GAAP gross profit and non-GAAP gross margin
- Non-GAAP operating income and non-GAAP operating margin
- Non-GAAP net income and non-GAAP net income per share
We define these non-GAAP financial measures as the respective
U.S. GAAP measures, excluding, as applicable, stock-based
compensation expense-related charges and amortization of acquired
intangible assets. We believe that it is useful to exclude
stock-based compensation expense-related charges and amortization
of acquired intangible assets in order to better understand the
long-term performance of our core business and to facilitate
comparison of our results to those of peer companies over multiple
periods. In periods of net loss, we calculate non-GAAP net income
(loss) per share by using non-GAAP net income (loss) divided by
basic weighted average shares for the period regardless of whether
we are in a non-GAAP net income or (loss) position and assuming
that all potentially dilutive securities are anti-dilutive.
In addition, the press release and the accompanying tables
contain free cash flow, which is defined as net cash provided by
operating activities less cash used for purchases of property and
equipment and capitalized internal-use software. We believe that
free cash flow is a useful indicator of liquidity as it measures
our ability to generate cash, or our need to access additional
sources of cash, to fund operations and investments. We expect our
free cash flow to fluctuate in future periods with changes in our
operating expenses and as we continue to invest in our growth. We
typically experience higher billings in the fourth quarter compared
to other quarters and experience higher collections of accounts
receivable in the first half of the year, which results in a
decrease in accounts receivable in the first half of the year.
However, non-GAAP financial measures have limitations in their
usefulness to investors because they have no standardized meaning
prescribed by U.S. GAAP and are not prepared under any
comprehensive set of accounting rules or principles. In addition,
other companies, including companies in our industry, may calculate
similarly titled non-GAAP financial measures differently or may use
other measures to evaluate their performance, all of which could
reduce the usefulness of our non-GAAP financial measures as tools
for comparison. As a result, our non-GAAP financial measures are
presented for supplemental informational purposes only and should
not be considered in isolation or as a substitute for our
consolidated financial statements presented in accordance with U.S.
GAAP.
Sprinklr has not reconciled its financial outlook expectations
as to non-GAAP operating income, or as to non-GAAP net income per
share, to their most directly comparable U.S. GAAP measures as a
result of the high variability, complexity and low visibility with
respect to the charges excluded from these non-GAAP measures; in
particular, the measures and effects of stock-based compensation
expense specific to equity compensation awards that are directly
impacted by unpredictable fluctuations in our stock price. We
expect the variability of the above charges to have a significant,
and potentially unpredictable, impact on our future U.S. GAAP
financial results. Accordingly, reconciliation is not available
without unreasonable effort, although it is important to note that
these factors could be material to Sprinklr’s results computed in
accordance with U.S. GAAP.
Conference Call Information
Sprinklr will host a conference call today, March 27, 2024, to
discuss fourth quarter and full year fiscal 2024 financial results,
as well as the first quarter and full year fiscal 2025 outlook, at
5:00 p.m. Eastern Time, 2:00 p.m. Pacific Time. Investors are
invited to join the webcast by visiting:
https://investors.sprinklr.com/. To access the call by phone, dial
877-459-3955 (domestic) or 201-689-8588 (international). The
conference ID number is 13744962. The webcast will be available
live, and a replay will be available following completion of the
live broadcast for approximately 90 days.
About Sprinklr Inc.
Sprinklr is a leading enterprise software company for all
customer-facing functions. With advanced AI, Sprinklr's unified
customer experience management (Unified-CXM) platform helps
companies deliver human experiences to every customer, every time,
across any modern channel. Headquartered in New York City with
employees around the world, Sprinklr works with more than 1,700
valuable enterprises — global brands like Microsoft, P&G,
Samsung and more than 60% of the Fortune 100. Sprinklr's value to
the enterprise is simple: We un-silo teams to make customers
happier.
Forward-Looking Statements
This press release contains express and implied “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding our financial
outlook for the first quarter and full year fiscal 2025, our
strategy to support growth and scale and our opportunity to be the
partner of choice for global brands at the forefront of exceptional
customer experience. In some cases, you can identify
forward-looking statements by terms such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“project,” “will,” “would,” “should,” “could,” “can,” “predict,”
“potential,” “target,” “explore,” “continue,” or the negative of
these terms, and similar expressions intended to identify
forward-looking statements. By their nature, these statements are
subject to numerous uncertainties and risks, including factors
beyond our control, that could cause actual results, performance,
or achievement to differ materially and adversely from those
anticipated or implied in the statements, including: our rapid
growth may not be indicative of our future growth; our revenue
growth rate has fluctuated in prior periods; our ability to achieve
or maintain profitability; we derive the substantial majority of
our revenue from subscriptions to our Unified-CXM platform; our
ability to manage our growth and organizational change; the market
for Unified-CXM solutions is new and rapidly evolving; our ability
to attract new customers in a manner that is cost-effective and
assures customer success; our ability to attract and retain
customers to use our products; our ability to drive customer
subscription renewals and expand our sales to existing customers;
our ability to effectively develop platform enhancements, introduce
new products or keep pace with technological developments; the
market in which we participate is new and rapidly evolving and our
ability to compete effectively; our business and growth depend in
part on the success of our strategic relationships with third
parties; our ability to develop and maintain successful
relationships with partners who provide access to data that
enhances our Unified-CXM platform’s artificial intelligence
capabilities; the majority of our customer base consists of large
enterprises, and we currently generate a significant portion of our
revenue from a relatively small number of enterprises; our
investments in research and development; our ability to expand our
sales and marketing capabilities; our sales cycle with enterprise
and international clients can be long and unpredictable; certain of
our results of operations and financial metrics may be difficult to
predict; our ability to maintain data privacy and data security; we
rely on third-party data centers and cloud computing providers; the
sufficiency of our cash and cash equivalents to meet our liquidity
needs; our ability to comply with modified or new laws and
regulations applying to our business; our ability to successfully
enter into new markets and manage our international expansion; the
attraction and retention of qualified employees and key personnel;
our ability to effectively manage our growth and future expenses
and maintain our corporate culture; our ability to maintain,
protect, and enhance our intellectual property rights; unstable
market and economic conditions, including as a result of increases
in inflation rates, higher interest rates, recent bank closures or
instability, public health crises and geopolitical actions, such as
war and terrorism or the perception that such hostilities may be
imminent; and our ability to successfully defend litigation brought
against us. Additional risks and uncertainties that could cause
actual outcomes and results to differ materially from those
contemplated by the forward-looking statements are or will be
discussed in our Quarterly Report on Form 10-Q for the quarter
ended October 31, 2023, filed with the SEC on December 6, 2023,
under the caption “Risk Factors,” and in other filings that we make
from time to time with the SEC, including our Annual Report on Form
10-K for the year ended January 31, 2024. Forward-looking
statements speak only as of the date the statements are made and
are based on information available to Sprinklr at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events. Sprinklr assumes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made, except as required
by law.
Key Business Metrics
RPO. RPO, or remaining performance obligations,
represents contracted revenue that have not yet been recognized,
and include deferred revenue and amounts that will be invoiced and
recognized in future periods.
cRPO. cRPO, or current RPO, represents contracted revenue
that have not yet been recognized, and include deferred revenue and
amounts that will be invoiced and recognized in the next 12
months.
Sprinklr, Inc.
Consolidated Balance
Sheets
(in thousands, except per
share data)
January 31,
2024
January 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
164,024
$
188,387
Marketable securities
498,531
390,239
Accounts receivable, net of allowance for
doubtful accounts of $5.3 million and $3.2 million,
respectively
267,731
205,038
Prepaid expenses and other current
assets
70,690
78,865
Total current assets
1,000,976
862,529
Property and equipment, net
32,176
22,885
Goodwill and other intangible assets
50,145
50,349
Operating lease right-of-use assets
31,058
15,725
Other non-current assets
108,755
73,503
Total assets
$
1,223,110
$
1,024,991
Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable
$
34,691
$
30,101
Accrued expenses and other current
liabilities
93,187
97,524
Operating lease liabilities, current
5,730
7,134
Deferred revenue
374,552
324,140
Total current liabilities
508,160
458,899
Deferred revenue, non-current
506
1,371
Deferred tax liability, non-current
1,474
1,289
Operating lease liabilities,
non-current
27,562
9,633
Other liabilities, non-current
5,704
4,467
Total liabilities
543,406
475,659
Commitments and contingencies
Stockholders’ equity
Class A common stock
4
3
Class B common Stock
4
6
Treasury stock
(23,831
)
(23,831
)
Additional paid-in capital
1,182,150
1,074,149
Accumulated other comprehensive loss
(3,836
)
(4,384
)
Accumulated deficit
(474,787
)
(496,611
)
Total stockholders’ equity
679,704
549,332
Total liabilities and stockholders’
equity
$
1,223,110
$
1,024,991
Sprinklr, Inc.
Consolidated Statements of
Operations
(in thousands, except per
share data)
(unaudited)
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
Revenue:
Subscription
$
176,960
$
148,348
$
668,541
$
548,649
Professional services
17,247
16,983
63,819
69,541
Total revenue
194,207
165,331
732,360
618,190
Costs of revenue:
Costs of subscription (1)
30,896
25,517
116,032
102,276
Costs of professional services (1)
16,653
13,808
63,369
61,449
Total costs of revenue
47,549
39,325
179,401
163,725
Gross profit
146,658
126,006
552,959
454,465
Operating expenses:
Research and development (1)
23,062
20,127
91,292
76,658
Sales and marketing (1)
77,083
83,301
321,849
336,719
General and administrative (1)
28,053
24,396
105,873
92,312
Total operating expenses
128,198
127,824
519,014
505,689
Operating income (loss)
18,460
(1,818
)
33,945
(51,224
)
Other income, net
8,253
2,453
26,577
3,756
Income (loss) before provision for income
taxes
26,713
635
60,522
(47,468
)
Provision for income taxes
5,570
1,301
9,119
8,274
Net income (loss)
$
21,143
$
(666
)
$
51,403
$
(55,742
)
Net income (loss) per share, basic
$
0.08
$
—
$
0.19
$
(0.21
)
Weighted average shares used in computing
net income (loss) per share, basic
274,062
262,087
269,974
259,530
Net income (loss) per share, diluted
$
0.07
$
—
$
0.18
$
(0.21
)
Weighted average shares used in computing
net income (loss) per share, diluted
288,517
262,087
287,093
259,530
(1)
Includes stock based compensation expense,
net of amounts capitalized, as follows:
Three Months Ended January
31,
Year Ended January 31,
(in thousands)
2024
2023
2024
2023
Costs of subscription
$
272
$
449
$
1,130
$
1,528
Costs of professional services
311
479
1,450
2,249
Research and development
2,474
2,978
11,566
10,678
Sales and marketing
6,079
7,915
24,477
26,651
General and administrative
4,516
3,776
17,134
14,411
Stock-based compensation expense, net of
amounts capitalized
$
13,652
$
15,597
$
55,757
$
55,517
Sprinklr, Inc.
Consolidated Statements of
Cash Flows
(in thousands)
Year ended January 31,
2024
2023
Cash flow from operating activities:
Net income (loss)
$
51,403
$
(55,742
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
15,466
12,051
Bad debt expense
5,906
4,079
Stock-based compensation expense, net of
amounts capitalized
55,757
55,517
Non-cash lease expense
8,352
6,588
Deferred income taxes
(2,668
)
166
Net amortization/accretion on marketable
securities
(17,009
)
(2,697
)
Other non-cash items, net
107
—
Changes in operating assets and
liabilities:
Accounts receivable
(68,709
)
(44,751
)
Prepaid expenses and other current
assets
8,675
29,092
Other non-current assets
(25,577
)
(24,376
)
Accounts payable
3,325
14,463
Operating lease liabilities
(8,019
)
(6,342
)
Accrued expenses and other current
liabilities
(6,515
)
6,688
Litigation settlement
—
(12,000
)
Deferred revenue
49,813
41,465
Other liabilities
1,158
2,459
Net cash provided by operating
activities
71,465
26,660
Cash flow from investing activities:
Purchases of marketable securities
(604,648
)
(816,708
)
Proceeds from sales and maturities of
marketable securities
514,403
639,663
Purchases of property and equipment
(8,548
)
(6,091
)
Capitalized internal-use software
(11,777
)
(10,358
)
Net cash used in investing activities
(110,570
)
(193,494
)
Cash flow from financing activities:
Proceeds from issuance of common stock
upon exercise of stock options
43,333
24,740
Proceeds from issuance of common stock
upon ESPP purchase
7,437
10,231
Payments for repurchase of Class A common
shares
(26,684
)
—
Net cash provided by financing
activities
24,086
34,971
Effect of exchange rate fluctuations on
cash, cash equivalents, and restricted cash
(939
)
(1,176
)
Net change in cash, cash equivalents, and
restricted cash
(15,958
)
(133,039
)
Cash, cash equivalents and restricted cash
at beginning of period
188,387
321,426
Cash, cash equivalents and restricted cash
at end of period
$
172,429
$
188,387
Sprinklr, Inc.
Reconciliation of Non-GAAP
Measures
(in thousands)
(unaudited)
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
Non-GAAP gross profit:
GAAP gross profit
$
146,658
$
126,006
$
552,959
$
454,465
Stock-based compensation expense-related
charges (1)
590
936
2,625
3,861
Non-GAAP gross profit
$
147,248
$
126,942
$
555,584
$
458,326
Gross margin
76
%
76
%
76
%
74
%
Non-GAAP gross margin
76
%
77
%
76
%
74
%
Non-GAAP operating income:
GAAP operating income (loss)
$
18,460
$
(1,818
)
$
33,945
$
(51,224
)
Stock-based compensation expense-related
charges (2)
13,859
16,045
57,902
56,704
Amortization of acquired intangible
assets
50
76
200
475
Non-GAAP operating income
$
32,369
$
14,303
$
92,047
$
5,955
Operating margin
10
%
(1
)%
5
%
(8
)%
Non-GAAP operating margin
17
%
9
%
13
%
1
%
Free cash flow:
Net cash provided by operating
activities
$
17,303
$
22,074
$
71,465
$
26,660
Purchase of property and equipment
(2,054
)
(3,168
)
(8,548
)
(6,091
)
Capitalized internal-use software
(2,986
)
(2,625
)
(11,777
)
(10,358
)
Free cash flow
$
12,263
$
16,281
$
51,140
$
10,211
(1) Employer payroll tax related to
stock-based compensation for the periods ended January 31, 2024,
and 2023 was immaterial as to the impact to gross profit.
(2) Includes $0.2 million and $0.5 million
of employer payroll tax related to stock-based compensation expense
for the three months ended January 31, 2024, and 2023,
respectively, and $2.1 million and $1.2 million of employer payroll
tax related to stock-based compensation expense for the years ended
January 31, 2024, and 2023, respectively.
Three Months Ended January
31,
2024
2023
(in thousands)
Per Share- Basic
Per Share- Diluted
(in thousands)
Per Share- Basic
Per Share- Diluted
Non-GAAP Net Income reconciliation to
Net Income (Loss)
Net income (loss)
$
21,143
$
0.08
$
0.07
$
(667
)
$
—
$
—
Add:
Stock-based compensation expense-related
charges
13,859
0.05
0.05
16,045
0.06
0.06
Amortization of acquired intangible
assets
50
0.00
0.00
76
0.00
0.00
Total additions, net
13,909
0.05
0.05
16,121
0.06
0.06
Non-GAAP Net Income
$
35,052
$
0.13
$
0.12
$
15,454
$
0.06
$
0.06
Weighted-average shares outstanding used
in computing net income (loss) per share, basic
274,062
262,087
Weighted average shares outstanding used
in computing net income (loss) per share, diluted
288,517
262,087
Year Ended January 31,
2024
2023
(in thousands)
Per Share- Basic
Per Share- Diluted
(in thousands)
Per Share- Basic
Per Share- Diluted
Non-GAAP Net Income reconciliation to
Net Income (Loss)
Net income (loss)
$
51,403
$
0.19
$
0.18
$
(55,742
)
$
(0.21
)
$
(0.21
)
Add:
Stock-based compensation expense-related
charges
57,902
0.22
0.20
56,704
0.22
0.22
Amortization of acquired intangible
assets
200
0.00
0.00
475
0.00
0.00
Total additions, net
58,102
0.22
0.20
57,179
0.22
0.22
Non-GAAP Net Income
$
109,505
$
0.41
$
0.38
$
1,437
$
0.01
$
0.01
Weighted-average shares outstanding used
in computing net income (loss) per share, basic
269,974
259,530
Weighted average shares outstanding used
in computing net income (loss) per share, diluted
287,093
259,530
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Investor Relations: ir@sprinklr.com
Media & Press: pr@sprinklr.com
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