cxm-20220430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40528

Sprinklr, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or other Jurisdiction of

Incorporation or organization)

29 West 35th Street

New York, NY

(Address of principal executive offices)

47-4771485

(IRS Employer

Identification No.)

10001

(Zip Code)

Registrant’s telephone number, including area code: (917) 933-7800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Class A common stock, par value

$0.00003 per share

CXM

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 7, 2022, the registrant had 110,644,564 shares of Class A common stock and 147,505,043 shares of Class B common stock, each with a par value of $0.00003 per share, outstanding.

TABLE OF CONTENTS



	SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive (Income) Loss	3
	Condensed Consolidated Statements of Stockholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71




Item 6.	Exhibits	72
Signatures

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements.

These forward-looking statements include, but are not limited to, statements concerning the following:

•our expectations regarding our revenue, expenses and other operating results;

•our ability to acquire new customers and successfully engage new and existing customers;

•our ability to achieve and maintain our profitability;

•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

•the costs and success of our marketing efforts and our ability to promote our brand;

•our growth strategies for our Unified-CXM platform;

•the estimated addressable market opportunity for our Unified-CXM platform;

•our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

•our ability to effectively manage our growth, including any international expansion;

•our ability to obtain, maintain, protect, defend or enforce our intellectual property or other proprietary rights and any costs associated therewith;

•the effects of public health crises, such as the ongoing COVID-19 pandemic, and geopolitical events, such as Russia’s ongoing incursion into Ukraine;

•our ability to compete effectively with existing competitors and new market entrants; and

•the growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-Q. And, while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Form 10-Q to reflect events or circumstances after the date of this Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Unless the context otherwise requires, the terms “Sprinklr,” “the Company,” “we,” “our,” “us” or similar references in this Form 10-Q refer to Sprinklr, Inc. and its subsidiaries.

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

SPRINKLR, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)


	April 30, 2022		January 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	131,819	$	321,426
Marketable securities	399,039		210,983
Accounts receivable, net of allowance for doubtful accounts of $2.8 million and $2.7 million, respectively	136,138		163,681
Prepaid expenses and other current assets	105,388		109,167
Total current assets	772,384		805,257
Property and equipment, net	15,503		14,705
Goodwill and other intangible assets	50,703		50,706
Operating lease right-of-use assets	14,756		—
Other non-current assets	46,827		49,378
Total assets	$	900,173	$	920,046

Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable	$	21,036	$	15,802
Accrued expenses and other current liabilities	76,237		100,220

Operating lease liabilities, current	7,661		—
Deferred revenue	274,633		279,028
Total current liabilities	379,567		395,050

Deferred revenue less current portion	3,410		5,325
Deferred tax liability, long-term	1,096		1,101
Operating lease liabilities, long-term	8,305		—
Other liabilities, long-term	1,437		2,721
Total liabilities	393,815		404,197

Commitments and contingencies (Note 9)
Stockholders’ equity:


Class A common stock, $0.00003 par value, 2,000,000,000 shares authorized as of April 30, 2022 and January 31, 2022, respectively; and 110,133,550 and 105,929,885 shares issued and outstanding as of April 30, 2022 and January 31, 2022, respectively	3		3
Class B common stock, $0.00003 par value, 310,000,000 shares authorized as of April 30, 2022 and January 31, 2022, respectively; and 147,811,383 and 150,551,314 shares issued and outstanding as of April 30, 2022 and January 31, 2022, respectively	5		5

Treasury stock, at cost, 14,130,784 shares as of April 30, 2022 and January 31, 2022, respectively	(23,831)		(23,831)
Additional paid-in capital	1,001,102		982,122
Accumulated other comprehensive loss	(4,003)		(820)
Accumulated deficit	(466,918)		(441,630)
Total stockholders’ equity	506,358		515,849
Total liabilities and stockholders’ equity	$	900,173	$	920,046

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



	Three Months Ended April 30,
	2022		2021
Revenue:
Subscription	$	127,320	$	96,772
Professional services	17,658		14,207
Total revenue:	144,978		110,979
Costs of revenue:
Costs of subscription	25,108		21,051
Costs of professional services	16,613		10,657
Total costs of revenue	41,721		31,708
Gross profit	103,257		79,271
Operating expenses:
Research and development	17,334		13,088
Sales and marketing	86,938		60,474
General and administrative	22,113		16,207
Total operating expenses	126,385		89,769
Operating loss	(23,128)		(10,498)
Other income (expense), net	295		(2,191)
Loss before provision for income taxes	(22,833)		(12,689)
Provision for income taxes	2,455		1,804
Net loss	$	(25,288)	$	(14,493)





Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.10)	$	(0.15)
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted	256,903		98,217

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)


	Three months ended April 30,
	2022		2021

Net loss	$	(25,288)	$	(14,493)
Foreign currency translation adjustments	(2,047)		(398)
Unrealized losses on investments	(1,136)		(2)
Total comprehensive loss	$	(28,471)	$	(14,893)




See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Stockholders' Equity

(in thousands)

(unaudited)




	Convertible Preferred Stock			Class A and Class B Common Stock			Common Stock			Additional Paid-in Amount		Treasury Stock			Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount				Shares	Amount

Balance at January 31, 2022	—	$	—	256,481	$	8	—	$	—	$	982,122	14,131	$	(23,831)	$	(820)	$	(441,630)	$	515,849



Stock-based compensation - equity classified awards	—	—		—	—		—	—		12,462		—	—		—		—		12,462

Exercise of stock options and release of vested restricted stock units	—	—		1,464	—		—	—		6,518		—	—		—		—		6,518


Other comprehensive loss	—	—		—	—		—	—		—		—	—		(3,183)		—		(3,183)
Net loss	—	—		—	—		—	—		—		—	—		—		(25,288)		(25,288)
Balance at April 30, 2022	—	$	—	257,945	$	8	—	$	—	$	1,001,102	14,131	$	(23,831)	$	(4,003)	$	(466,918)	$	506,358









	Convertible Preferred Stock			Class A and Class B Common Stock			Common Stock			Additional Paid-in Amount		Treasury Stock			Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount				Shares	Amount

Balance at January 31, 2021	120,903	$	424,992	—	$	—	95,456	$	4	$	122,061	14,131	$	(23,831)	$	787	$	(330,160)	$	193,853
Stock-based compensation - equity classified awards	—	—		—	—		—	—		8,657		—	—		—		—		8,657
Exercise of stock options	—	—		—	—		5,692	—		8,006		—	—		—		—		8,006



Other comprehensive loss	—	—		—	—		—	—		—		—	—		(400)		—		(400)
Net loss	—	—		—	—		—	—		—		—	—		—		(14,493)		(14,493)
Balance at April 30, 2021	120,903	$	424,992	—	$	—	101,148	$	4	$	138,724	14,131	$	(23,831)	$	387	$	(344,653)	$	195,623

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three months ended April 30,
	2022		2021
Cash flow from operating activities:
Net loss	(25,288)		$	(14,493)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	2,498		1,592
Bad debt expense	114		(477)
Stock-based compensation expense, net of amounts capitalized	12,514		8,906
Non-cash interest paid in kind and discount amortization	—		2,015
Noncash lease expense	1,457		—
Deferred income taxes	—		1
Other noncash items, net	(547)		(519)
Changes in operating assets and liabilities:
Accounts receivable	27,418		23,926
Prepaid expenses and other current assets	3,579		(687)
Other noncurrent assets	2,411		(14,848)
Accounts payable	5,167		(1,182)
Accrued expenses and other current liabilities	(11,320)		(13,069)
Litigation settlement	(12,000)		—
Deferred revenue	(6,094)		(1,457)
Other liabilities	(2,819)		(109)
Net cash used in operating activities	(2,910)		(10,401)
Cash flow from investing activities:
Purchases of marketable securities	(192,634)		—
Sales of marketable securities	—		—
Maturities of marketable securities	3,441		20,860
Purchases of property and equipment	(638)		(1,164)
Capitalized internal-use software	(2,288)		(1,034)

Net cash provided by (used in) investing activities	(192,119)		18,662
Cash flow from financing activities:












Proceeds from issuance of common stock upon exercise of stock options	6,518		8,006
Net cash provided by financing activities	6,518		8,006
Effect of exchange rate fluctuations on cash and cash equivalents	(1,096)		(115)
Net change in cash and cash equivalents	(189,607)		16,152
Cash and cash equivalents at beginning of period	321,426		68,037
Cash and cash equivalents at end of period	$	131,819	$	84,189

	Three months ended April 30,
	2022		2021
Supplemental disclosure of cash flow information
Cash paid for income taxes	$	1,256	$	877

Supplemental disclosure for noncash investing and financing



Stock-based compensation expense capitalized in internal-use software	198		—
Accrued purchases of property and equipment	138		317
Right of use assets obtained in exchange for operating lease liabilities	2,763		—
Accrued for asset retirement obligations	—		8



Deferred offering costs included in accounts payable and accrued liabilities	—		1,850
See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

1.Organization and Description of Business

Description of Business

Founded in 2009, Sprinklr, Inc. (“Sprinklr” or the “Company”) provides enterprise cloud software products that enable organizations to do marketing, advertising, research, care, sales and engagement across modern channels including social, messaging, chat and text through its unified Customer Experience Management (“CXM”) software platform.

The Company was incorporated in Delaware in 2011 and is headquartered in New York, New York, USA with 17 operating subsidiaries globally.

2.Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission, (the “SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2022, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of the Company’s condensed consolidated financial information. The results of operations for the three months ended April 30, 2022 are not necessarily indicative of the results to be expected for the year ending January 31, 2023 or for any other interim period or for any other future year.

The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2022 in the Company’s Annual Report on Form 10-K (the “2022 10-K”) filed with the SEC on April 11, 2022.

Other than the adoption of the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842), there have been no material changes in the significant accounting policies as described in the Company’s consolidated financial statements for the fiscal year ended January 31, 2022 included in the 2022 10-K.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Immaterial Corrections to Prior Periods

In the fourth quarter of fiscal year 2022, the Company identified immaterial corrections to prior periods related to capitalized costs to obtain customer contracts in connection with the adoption of ASC 606, Revenue from Contracts with Customers (“ASC 606”), and the ongoing monitoring of costs to obtain customer contracts considered for capitalization. The Company has evaluated the effects of these corrections on the previously issued condensed consolidated financial statements, individually and in aggregate, in accordance with the guidance in ASC Topic 250, Accounting Changes and Error Corrections, ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. Although the Company has concluded such corrections to be immaterial to its previously issued financial statements, the cumulative effect would be material if corrected in the fourth quarter of fiscal year 2022. Accordingly, the Company has revised the condensed consolidated financial statements for the prior periods presented herein.

A summary of the effect of the corrections on the condensed consolidated statements of operations for the three months ended April 30, 2021 were as follows (in thousands, except per share data):


	Three Months Ended April 30, 2021
	As reported		Corrections		As Adjusted
Operating expenses:
Research and development	$	13,128	$	(40)	$	13,088
Sales and marketing	60,638		(164)		60,474
Total operating expenses	89,973		(204)		89,769
Operating loss	(10,702)		204		(10,498)
Loss before provision for income taxes	(12,893)		204		(12,689)
Net loss	(14,697)		204		(14,493)


Net loss per share attributable to Class A and Class B stockholders, basic and diluted	$	(0.15)	$	—	$	(0.15)

A summary of the effect of the corrections on the condensed consolidated statements of cash flows for the three months ended April 30, 2021 were as follows (in thousands):


	Three Months Ended April 30, 2021
	As reported	Corrections	As Adjusted

Net loss	(14,697)	204	(14,493)
Changes in operating assets and liabilities
Prepaid expenses and other current assets	(529)	(158)	(687)
Other non-current assets	(14,802)	(46)	(14,848)

For all periods in which the Company corrected net loss, the Company made corresponding corrections to net loss and comprehensive loss, in the condensed consolidated statements of comprehensive loss and to net loss, accumulated deficit and total stockholders’ equity in the condensed consolidated statements of stockholders’ equity.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, recoverability of long-lived and intangible assets and the allowance for doubtful accounts. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Segments

The Company operates in one operating segment because the Company’s offerings operate on its single Customer Experience Management Platform, the Company’s products are deployed in a similar way, and the Company’s chief operating decision maker evaluates the Company’s financial information and assesses the performance of the Company on a consolidated basis. Because the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.

Leases

On February 1, 2022, the Company adopted the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842). Under Topic 842, the Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. As of April 30, 2022, the Company did not have any finance leases.

Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842. Leases with an initial term of 12 months or less are not recognized on the balance sheet. Additionally, the Company has elected not to separate lease components from non-lease components for all asset classes. Non-lease components that are not fixed are expensed as incurred as variable lease costs. The Company uses the incremental borrowing rate based on information available at the commencement date in determining the present value of future lease payments. The rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term.

The Company leases facilities under non-cancelable operating lease agreements. Certain of the operating lease agreements contain rent concessions and rent escalations that are included in the present value calculation of minimum lease payments. Topic 842 requires that operating leases recognize expense on a straight-line basis over the lease term. The lease term begins on the date the Company has the right to use the leased property. Lease terms may include options to extend or terminate the lease. These options are included in the ROU asset and lease liability when it is reasonably certain that the option will be exercised. The Company's lease agreements do not contain residual value guarantees or covenants.

Prior to the February 1, 2022 adoption of Topic 842, ROU asset and lease liabilities were not recognized for operating leases. Rent concessions and rent escalation provisions were considered in determining the straight-line rent expense to be recovered over the lease term.

Concentration of Risk and Significant Customers

The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. The Company performs periodic credit evaluations of its customers and generally does not require collateral.

No single customer accounted for more than 10% of total revenue in the three months ended April 30, 2022 and 2021.

In addition, the Company relies upon third-party hosted infrastructure partners globally to serve customers and operate certain aspects of its services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company's hosted infrastructure partners would impact the Company’s operations and could adversely impact its business.

Revenue Recognition

The Company accounts for revenue in accordance with ASC 606. For further discussion of the Company’s accounting policies related to revenue see Note 3, Revenue Recognition.

Stock-Based Compensation

The Company accounts for stock-based compensation as an expense in the statements of operations based on the awards’ grant date fair values.

The Company estimates the fair value of service-based options granted using the Black-Scholes option pricing model. Stock options that include service, performance and market conditions are valued using the Monte-Carlo simulation model. The

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Black-Scholes option pricing model requires inputs based on certain assumptions, including (a) the fair value per share of the Company's common stock (b) the expected stock price volatility, (c) the calculation of expected term of the award, (d) the risk-free interest rate and (e) expected dividends. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and determining a value based on the possible outcomes from these trial runs.

The fair value of stock-based payments is recognized as compensation expense, net of expected forfeitures, over the requisite service period, which is generally the vesting period, with the exception of the fair value of stock-based payments for awards that include service, performance and market conditions which is recognized as compensation expense over the requisite service period as achievement of the performance objective becomes probable.

The Company issued certain performance stock units (“PSUs”), that vest upon the satisfaction of time-based service, performance-based and market conditions. The Company estimates compensation cost based on the grant date fair value and recognize the expense on a graded vesting basis over the vesting period of the award. As the PSUs are subject to a market condition (stock price), the grand date fair value is measured using a Monte Carlo simulation approach, which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. The performance-based vesting condition was satisfied upon the occurrence of a qualifying event, which was generally defined as a change in control transaction or the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company's common stock. Upon the effectiveness of the Registration Statement on June 22, 2021, the performance-based vesting condition was satisfied, and therefore, the Company commenced recognition of compensation expense using the accelerated attribution method over the requisite service period.

The Company estimates fair value of its restricted stock units (“RSU”) based on the fair value of the underlying common stock, net of estimated forfeitures. Subsequent to the Company’s initial public offering (“IPO”) in June 2021, the Company determines the fair value using the closing price of its Class A common stock as reported on the date of grant.

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842), and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. Effective February 1, 2022, the Company adopted the standard and elected the package of transition practical expedients that allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases; (ii) the classification for any expired or existing leases; and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient of not separate lease components from non-lease components for all asset classes. The Company also made an accounting policy election not to record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in its consolidated statement of operation on a straight-line basis over the lease term. The Company recorded lease liabilities and corresponding ROU assets of approximately $14 million upon adoption of this standard.

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires immediate recognition of management’s estimates of current expected credit losses. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of adoption on the consolidated financial statements.

3. Revenue Recognition

The Company derives its revenues primarily from (i) subscription revenue, which consists of subscription fees from customers accessing the Company’s cloud-based software platform and applications, as well as related customer support services; and (ii) professional services revenue, which consists of fees associated with providing services that educate and assist the Company’s customers with the configuration and optimization of the Company’s software platform and applications. Professional services revenue also includes managed services fees where the Company’s consultants work as part of its customers’ teams to help leverage the subscription service to execute on their customer experience management goals.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Contracts with Multiple Performance Obligations

The Company executes arrangements that include multiple performance obligations (consisting of subscription and professional services). Additionally, the Company is often party to multiple concurrent contracts or contracts pursuant to which a client may purchase a combination of services. These situations require judgment to determine whether the multiple promises are separate performance obligations. Once the Company has determined the performance obligations, the Company determines the transaction price. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. The determination of SSP for each distinct performance obligation requires judgement. The Company determines SSP based on its overall pricing objective, taking into consideration contractually stated prices, size of the arrangement, market conditions, costs, renewal contracts, list prices, internal discounting tables and other observable and unobservable inputs.

Costs to Obtain Customer Contracts

Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit. The Company determines the period of benefit by taking into consideration the length of its customer contracts, customer relationship period, technology lifecycle, and other factors. The Company has historically estimated such period of benefit to be three years. During the first quarter of fiscal 2023, the Company updated the period of benefit, noting that recent customer relationship periods extended to an average period of five years. Accordingly, the Company noted a change in estimate of the amortization period of these costs and will prospectively amortize over a period of benefit of five years. Sales commissions paid for renewals are not commensurate with commissions paid on the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Amortization expense is recorded in sales and marketing expense within the Company’s condensed consolidated statement of operations. The change in amortization period resulted in an immaterial impact to sales and marketing expense for the three months ended April 30, 2022.

Capitalized costs to obtain customer contracts as of April 30, 2022 were $81.7 million, of which $39.9 million is included in prepaid expenses and other current assets and $41.8 million within other non-current assets.

Capitalized costs to obtain customer contracts as of January 31, 2022 were $83.0 million, of which $40.7 million is included in prepaid expenses and other current assets and $42.3 million within other non-current assets.

During the three months ended April 30, 2022 and 2021, the Company amortized $11.0 million and $8.1 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense.

The prior period amounts reflect immaterial corrections related to capitalized costs to obtain customer contracts. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, for more information regarding immaterial corrections to prior periods.

Deferred Revenue

Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The Company recognized revenue of $113.4 million and $90.5 million for the three months ended April 30, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods.

The Company receives payments from customers based on billing schedules as established in its contracts. Contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to the revenue recognition guidance. At April 30, 2022 and January 31, 2022, contract assets were $3.6 million and $3.2 million, respectively, and were included in prepaid expenses and other current assets.

Remaining Performance Obligation

Remaining Performance Obligation (“RPO”) represents contracted revenues that had not yet been recognized and includes deferred revenues and amounts that will be invoiced and recognized in future periods. As of April 30, 2022, the Company’s RPO was $585.8 million, approximately $412.5 million of which the Company expects to recognize as revenue over the next 12 months and the remaining balance will be recognized thereafter.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Disaggregation of Revenues

The Company disaggregates its revenue from contracts with customers by geographic location and market, as it believes it best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. Refer to Note 13, Geographic Information, for revenue by geographic location.

4. Marketable Securities

The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands):


	April 30, 2022
	Amortized Cost		Unrealized Gain		Unrealized Losses		Fair value
Corporate bonds	$	141,169	$	—	$	(833)	$	140,336
U.S. government and agency securities	162,416		—		(348)		162,068
Commercial paper	91,807		—		(154)		91,653
Certificate of deposit	4,982		—		—		4,982
Marketable securities	$	400,374	$	—	$	(1,335)	$	399,039


	January 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Losses		Fair value
Corporate bonds	$	124,639	$	1	$	(163)	$	124,477
U.S. government and agency securities	37,725		—		(35)		37,690
Commercial paper	48,818		—		(2)		48,816
Marketable securities	$	211,182	$	1	$	(200)	$	210,983

As of April 30, 2022 and January 31, 2022, the maturities of available-for-sale marketable securities did not exceed 12 months.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

5. Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of April 30, 2022 and January 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):


	April 30, 2022								January 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash Equivalents:
Money market funds	$	57,273	$	—	$	—	$	57,273	$	281,091	$	—	$	—	$	281,091


Marketable Securities:
Corporate bonds	—		140,336		—		140,336		—		124,477		—		124,477
U.S. government and agency securities	—		162,068		—		162,068		—		37,690		—		37,690
Commercial paper	—		91,653		—		91,653		—		48,816		—		48,816
Certificate of deposit	—		4,982		—		4,982		—		—		—		—
Total financial assets	$	57,273	$	399,039	$	—	$	456,312	$	281,091	$	210,983	$	—	$	492,074

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate debt securities, U.S. government agencies, certificates of deposit, and U.S. government treasury securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded.

The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s marketable securities consist primarily of U.S. Treasury securities, high credit quality corporate debt securities and commercial paper. The Company has classified and accounted for its marketable securities as available-for-sale securities as it may sell these securities at any time for use in the Company’s current operations or for other purposes, even prior to maturity.

The Company regularly reviews the changes to the rating of its debt securities by rating agencies as well as reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of April 30, 2022 and January 31, 2022, there were no securities that were in an unrealized loss position for more than 12 months. The Company has not recorded any impairments, as it believes that any such losses would be immaterial based on the high-grade credit rating for each of its marketable securities as of the end of each period.

6. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	April 30, 2022		January 31, 2022
Prepaid hosting and data costs	$	41,758	$	46,513
Prepaid software costs	6,667		5,765
Capitalized commissions costs, current portion	39,871		40,695
Prepaid insurance	770		2,118
Contract assets	3,591		3,161
Other	12,731		10,915
Prepaid expenses and other current assets	$	105,388	$	109,167

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	April 30, 2022		January 31, 2022
Computer equipment	$	13,628	$	13,544
Office furniture and other	1,255		1,256
Leasehold improvements	3,799		3,930
Less accumulated depreciation and amortization	(12,908)		(12,433)
Total fixed assets, net	5,773		6,297
Capitalized internal-use software	25,551		23,065
Less accumulated amortization	(15,821)		(14,657)
Total capitalized internal-use software	9,730		8,408
Property and equipment, net	$	15,503	$	14,705

Depreciation and amortization expense for property and equipment was $1.2 million and $0.8 million in the three months ended April 30, 2022 and 2021, respectively.

Amortization expense for capitalized internal-use software was $1.1 million and $0.7 million in the three months ended April 30, 2022 and 2021, respectively.

The Company capitalized internal-use software costs, including stock-based compensation, of $2.5 million and $1.0 million in the three months ended April 30, 2022 and 2021, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	April 30, 2022		January 31, 2022
Bonuses	$	6,740	$	22,622
Commissions	8,382		16,496
Employee liabilities (1)	26,612		21,668
Accrued litigation settlement (2)	—		12,000
Purchased media costs (3)	2,934		3,227
Accrued sales and use tax liability	5,984		6,935
Accrued income taxes	4,064		2,559
Professional services	1,424		1,062
Other	20,097		13,651
	$	76,237	$	100,220

(1) Includes $5.3 million and $2.3 million of accrued employee contributions under the Company's 2021 Employee Stock Purchase Plan (“ESPP”) at April 30, 2022 and January 31, 2022, respectively.

(2) On February 25, 2022, the Company and Opal Labs Inc. (“Opal”) agreed to settle all outstanding claims with respect to Opal's complaints alleging breach of contract and violation of Oregon's Uniform Trade Secrets Acts, among other claims.

(3) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers.

7. Leases

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company has operating leases for corporate offices under non-cancelable operating leases with various expiration dates. There are no finance leases.

The components of lease expense were as follows (in thousands):


	Three Months Ended April 30, 2022
Operating lease cost	$	1,847
Variable lease cost	7
Short-term lease cost	188
Total lease cost	$	2,042

Supplemental cash flow and balance sheet information related to operating leases is as follows (in thousands):


	April 30, 2022
Cash flow information
Operating cash flows paid for operating leases	$	1,678

Balance sheet information
Operating lease right-of-use assets	$	14,756

Operating lease liabilities, current	7,661
Operating lease liabilities, long-term	8,305
Total operating lease liabilities	$	15,966

Other information related to leases was as follows:


	April 30, 2022
Weighted average remaining lease term	2.7 years
Weighted average discount rate	10.9	%

As of April 30, 2022, the maturities of lease liabilities under non-cancelable operating leases, net of lease incentives, was as follows (in thousands):


	April 30, 2022
Remainder of 2023	$	6,322
2024	6,994
2025	2,520
2026	1,413
2027	1,208
Thereafter	—
Total minimum lease payments	18,457
Less: imputed interest	(2,491)
Total	$	15,966

Rent expense for operating leases for the three months ended April 30, 2021, which were accounted for under ASC 840, Leases (“ASC 840”), was $1.6 million.

As previously disclosed in the Company's consolidated financial statements as of and for the year ended January 31, 2022 and under the previous lease accounting standard, future minimum lease payments under non-cancelable operating leases were as follows (in thousands):

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements


Fiscal year ended January 31,
2023	$	9,676
2024	8,036
2025	3,165
2026	2,034
2027 and thereafter	1,726
Total	$	24,637

8. Credit Agreement

The Company maintains a credit agreement with Silicon Valley Bank (the “SVB Credit Facility”). Under the terms of the SVB Credit Facility, the Company can borrow up to $50.0 million on its revolving credit loan facility on its revolving credit loan facility at the higher of prime interest rate plus 0.25% or federal funds effective rate plus 0.50% plus 0.25%. The SVB Credit Facility, which expires on June 21, 2022, requires the Company to maintain certain monthly adjusted quick ratio and quarterly minimum consolidated adjusted earnings before income taxes, depreciation and amortization. As of April 30, 2022 and January 31, 2022, the Company had no amounts outstanding under the SVB Credit Facility.

9. Commitments and Contingencies

Letters of Credit

As of April 30, 2022 and January 31, 2022, the Company had an aggregate availability of $0.7 million and $0.7 million, respectively, under letters of credit primarily related to one of its leases. The Company has not drawn down on these letters of credit as of April 30, 2022.

Legal Matters

From time to time, the Company, various subsidiaries, and certain current and former officers may be named as defendants in various lawsuits, claims, investigations and proceedings arising from the normal course of business. The Company also may become involved with contract issues and disputes with customers. With respect to litigation in general, based on the Company’s experience, management believes that the amount of damages claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. The Company believes that it has valid defenses with respect to the legal matters pending against the Company and intends to vigorously contest each of them.

The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position. However, if an unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations for that period.

On September 7, 2017, a complaint was filed by Opal against the Company in the Circuit Court of the State of Oregon, alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. On September 5, 2018, the case was moved from state court to federal court on the Company’s motion. On February 25, 2022, the Company and Opal agreed to settle all outstanding claims with respect to Opal’s complaints. On March 1, 2022, the court dismissed all of Opal’s claims with prejudice. The Company and Opal finalized the settlement on March 15, 2022, which was accrued as of January 31, 2022 and paid on March 30, 2022.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

10. Stock-Based Compensation

Summary of Stock Option Activity

A summary of the Company’s stock option activity for the Plan for the three months ended April 30, 2022 is as follows:


	Number of stock options	Weighted average exercise price		Weighted average remaining contractual life
	(in thousands)			(in years)
Outstanding as of January 31, 2022	44,355	6.23		7.8

Exercised	(1,404)	4.56
Cancelled/forfeited	(1,886)	7.73
Outstanding as of April 30, 2022	41,065	6.22		7.4

Exercisable as of April 30, 2022	23,185	$	5.07	7.0
Vested and expected to vest as of April 30, 2022	36,146	$	5.87	7.3

Restricted Stock Units

A summary of the Company’s RSU award activity was as follows:


	Number of restricted shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding as of January 31, 2022	1,730	$	14.67
Granted	6,537	13.19
Released	(60)	9.07
Cancelled/forfeited	(115)	13.39
Outstanding as of April 30, 2022	8,092	$	13.56

Stock-Based Compensation Expense

Stock-based compensation expense included in operating results was allocated as follows (in thousands):


	Three Months Ended April 30,
	2022		2021
Costs of subscription	$	408	$	378
Costs of professional services	623		284
Research and development	2,348		1,229
Sales and marketing	5,856		4,201
General and administrative	3,279		2,814
Stock-based compensation, net of amounts capitalized	12,514		8,906
Capitalized stock-based compensation	198		—
Total stock-based compensation	$	12,712	$	8,906

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements


	Three Months Ended April 30,
	2022		2021
Equity classified awards	$	12,462	$	8,656

Other awards (1)	250		250
	$	12,712	$	8,906

(1) Nonemployee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award.

As of April 30, 2022, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimated forfeitures, was as follows:


	April 30, 2022
	Unrecognized expense		Weighted average expense recognition period
	(in thousands)		(in years)
Stock options	$	36,515	2.6
Performance share units	2,110		2.8
Restricted stock units	52,714		3.8
ESPP	5,460		0.6

11. Net Loss Per Share

The Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its convertible preferred shares to be participating securities, as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities.

Basic loss per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods when the Company has income, the Company calculates basic earnings per share using the two-class method, if required, pursuant to ASC 260, Earnings Per Share. The two-class method was required effective with the issuance of convertible preferred stock in the past because this class of stock qualified as a participating security, giving the holder the right to receive dividends should dividends be declared on common stock. Under the two-class method, earnings for a period are allocated on a pro rata basis to the common stockholders and to the holders of convertible preferred stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.

Following the Company’s IPO in June 2021, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s capital stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable on the conversion of outstanding convertible preferred stock, were converted into shares of the Company’s Class B common stock immediately prior to the completion of the offering. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both individual and combined basis.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended April 30,
	2022		2021
Net loss per share - basic and diluted:
Numerator:
Net loss attributable to Class A and Class B common stockholders	$	(25,288)	$	(14,493)




Denominator:
Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted	256,903		98,217










Net loss per common share attributable to Class A and Class B common stockholders - basic and diluted	$	(0.10)	$	(0.15)

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):



	2022	2021
Convertible Preferred Stock	—	120,902
Options to purchase common stock	41,065	48,310
Convertible note	—	9,113
Performance share units	2,625	3,100
Restricted stock units	8,092	450
ESPP	388	—
Deferred stock compensation plan	—	1,628
Warrants to purchase common stock	2,500	2,731
Total shares excluded from net (loss) income per share	54,670	186,234

12. Income Taxes

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. During the three months ended April 30, 2022 and 2021, the Company recorded an income tax expense of $2.5 million and $1.8 million, respectively.

The Company’s effective tax rate generally differs from the U.S. federal statutory tax rate primarily due to a full valuation allowance related to the Company’s U.S. deferred tax assets, partially offset by state taxes and the foreign tax rate differential on non-U.S. income.

The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence. As of April 30, 2022, the Company continues to maintain a full valuation allowance against the deferred tax assets for the U.S. and certain international entities.

During the three months ended April 30, 2022, the Company recorded a $0.1 million reserve related to unrecognized tax benefits.

13. Geographic Information

The Company operates in one segment. The Company’s products and services are sold throughout the world. The Company’s chief operating decision maker (the “CODM”) is the chief executive officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography.

SPRINKLR, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the cloud-based software platform (in thousands):


	Three Months Ended April 30,
	2022		2021
Americas	$	93,538	$	71,312
EMEA	40,733		30,565
Other	10,707		9,102
	$	144,978	$	110,979

The United States was the only country that represented more than 10% of the Company’s revenues in the three months ended April 30, 2022 and 2021, respectively, comprising of $87.6 million and $66.6 million, respectively.

Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of April 30, 2022 and January 31, 2022, long lived assets by geographic region were as follows (in thousands):


	April 30, 2022		January 31, 2022

Americas (1)	$	11,637	$	10,472
EMEA	1,344		1,551
Other	2,522		2,682
	$	15,503	$	14,705

(1) Includes $11.4 million and $10.2 million of fixed assets