Sprinklr Reports 9% Revenue Growth to $796.4 Million for Fiscal Year Ending January 31, 2025

Sprinklr, Inc. reported a significant increase in its financial performance for the fiscal year ending January 31, 2025, with total revenue reaching $796.4 million, a 9% increase from $732.4 million in the previous year. Subscription revenue, which constitutes the bulk of the company's income, rose by 7% to $717.9 million, driven by increased demand from both existing and new customers. Professional services revenue also saw a notable increase of 23%, totaling $78.5 million, attributed to growth in implementations and managed services related to the company's Contact Center as a Service (CCaaS) offerings. Despite this revenue growth, Sprinklr reported a net income of $121.6 million, a substantial increase from $51.4 million in the prior year, largely due to a significant release of a valuation allowance on deferred tax assets.

The company experienced a rise in costs, with total costs of revenue increasing by 24% to $222.1 million, primarily due to higher data and hosting costs associated with its cloud infrastructure. The gross margin for subscription services decreased to 80% from 83% the previous year, while professional services gross margin fell to -4% from 1%, reflecting the increased investment in CCaaS delivery capabilities. Operating expenses remained relatively stable, with research and development costs slightly increasing to $92.0 million, while sales and marketing expenses decreased as a percentage of revenue, indicating a more efficient allocation of resources.

Sprinklr's customer base expanded to 1,930 as of January 31, 2025, including 60% of the Fortune 100, up from 1,735 customers the previous year. The company reported 149 customers with subscription revenues exceeding $1 million, an increase from 126 in the prior year. The company’s remaining performance obligations (RPO) stood at $987.7 million, indicating a strong future revenue stream, with $612.5 million expected to be recognized in the next 12 months. The net dollar expansion rate, a key metric for customer retention and growth, was reported at 103.6%, down from 117.7% the previous year, reflecting increased churn amid challenging macroeconomic conditions.

Strategically, Sprinklr has focused on enhancing its Unified Customer Experience Management (Unified-CXM) platform, which integrates various customer engagement tools across digital channels. The company has also been actively pursuing international expansion, with 41% of its revenue generated outside the Americas. In terms of workforce, Sprinklr employed 3,589 individuals as of January 31, 2025, with a significant presence in India, which provides a competitive advantage in accessing skilled talent at lower costs.

Looking ahead, Sprinklr aims to continue its growth trajectory by investing in product innovation and expanding its customer base. The company plans to enhance its CCaaS offerings and further penetrate international markets. However, it acknowledges potential challenges from macroeconomic factors, including inflation and geopolitical tensions, which could impact customer spending and overall business performance. The company remains committed to maintaining its competitive edge through strategic partnerships and selective acquisitions to broaden its service offerings.