Sprinklr Reports $200.7M Revenue with 8% Year-Over-Year Growth, Appoints New CEO

Sprinklr, Inc. reported a total revenue of $200.7 million for the three months ended October 31, 2024, marking an 8% increase from $186.3 million in the same period last year. Subscription revenue rose by 6% to $180.6 million, while professional services revenue surged by 26% to $20.1 million. For the nine months ending October 31, 2024, total revenue reached $593.9 million, a 10% increase from $538.2 million in the prior year. However, the company reported a net income of $10.5 million for the quarter, down from $17.0 million a year earlier, reflecting a decrease in operating income from $13.2 million to $7.9 million.

The financial performance indicates a shift in profitability, with operating expenses rising to $135.0 million from $126.7 million year-over-year. The increase in costs was driven by higher expenses in sales and marketing, which rose to $77.6 million, and general and administrative expenses, which increased to $34.1 million. The company also noted a significant rise in costs associated with subscription services, primarily due to increased data and hosting costs, which rose by $4.6 million.

Strategically, Sprinklr appointed Rory Read as its new President and CEO, effective November 5, 2024, succeeding Ragy Thomas, who will transition to an advisory role. This leadership change is part of the company's ongoing efforts to enhance its Unified Customer Experience Management (Unified-CXM) platform, which includes recent product enhancements and expansions into new markets. As of October 31, 2024, Sprinklr reported having 147 large customers, an increase from 123 a year prior, indicating growth in its customer base.

Operationally, the company reported a Remaining Performance Obligation (RPO) of $906.3 million, with $545.6 million expected to be recognized as revenue over the next 12 months. The net dollar expansion rate (NDE) was 107.3%, down from 117.7% a year earlier, attributed to increased customer churn amid challenging macroeconomic conditions. The company also experienced a decrease in cash and cash equivalents, which fell to $93.2 million from $164.0 million at the beginning of the fiscal year, reflecting significant cash outflows related to its share repurchase program.

Looking ahead, Sprinklr anticipates continued investment in its Unified-CXM platform and strategic initiatives to drive growth. However, the company acknowledges potential challenges posed by macroeconomic factors, including inflation and geopolitical tensions, which could impact customer spending and overall business performance. The management remains focused on enhancing operational efficiencies and expanding its market presence to mitigate these risks.