In This Article:
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Total Revenue: $200.7 million, up 8% year over year.
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Subscription Revenue: $180.6 million, up 6% year over year.
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Professional Services Revenue: $20.1 million.
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Non-GAAP Operating Income: $23.3 million, with a 12% margin.
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Non-GAAP Net Income: $0.10 per diluted share.
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Free Cash Flow: $4.9 million for the quarter.
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Cash and Marketable Securities: $477 million with no debt.
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Subscription Gross Margin: 80% on a non-GAAP basis.
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Total Non-GAAP Gross Margin: 72%.
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Customers with $1 Million+ Subscription Revenue: 147, a 20% increase year over year.
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Calculated Billings: $147.9 million, a decrease of 8% year over year.
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Total Remaining Performance Obligations (RPO): $906.3 million, up 17% year over year.
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Current RPO (cRPO): $545.6 million, up 11% year over year.
Release Date: December 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sprinklr Inc (NYSE:CXM) reported an 8% year-over-year increase in total revenue, reaching $200.7 million for Q3.
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Subscription revenue grew by 6% year-over-year to $180.6 million, indicating strong demand for Sprinklr's offerings.
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The company achieved a non-GAAP operating income of $23.3 million, resulting in a 12% non-GAAP operating margin.
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Sprinklr Inc (NYSE:CXM) has a robust customer base with over 1,800 customers, including nearly 150 customers contributing $1 million or more in subscription revenue.
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The company has a healthy balance sheet with $477 million in cash and marketable securities and no debt outstanding.
Negative Points
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Sprinklr Inc (NYSE:CXM) is currently operating below the Rule of 40, with a combined growth rate and profit margin under 20%, which is considered unsatisfactory by management.
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Professional services gross margin was negative 8%, highlighting inefficiencies in this segment.
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The company is experiencing elevated churn and a lower quantum of new business, which is expected to impact future revenue growth.
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Calculated billings for Q3 decreased by 8% year-over-year, indicating potential challenges in securing new contracts or renewals.
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Sprinklr Inc (NYSE:CXM) faces challenges in improving sales and marketing efficiency and needs to streamline its go-to-market structure.
Q & A Highlights
Q: What is your perspective on the future direction of Sprinklr, particularly between CCaaS and core social solutions? A: Rory Read, President and CEO, emphasized an ambidextrous strategy focusing on reenergizing and growing the core social and customer experience solutions while hardening and expanding the service offerings. He highlighted the importance of improving Rule of 40 results and driving long-term durable, profitable growth.