Sprinklr Announces Second Quarter Fiscal 2024 Results
•Q2 Total Revenue of $178.5 million, up 18% year-over-year
•Q2 Subscription Revenue of $163.5 million, up 23% year-over-year
•Continued growth and operational improvements generate net cash provided by operating activities of $14.6 million and free cash flow* of $8.7 million in Q2
•RPO and cRPO up 35% and 22% year-over-year, respectively
•120 $1 million customers, up 22% year-over-year

NEW YORK, New York--September 6, 2023--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second quarter ended July 31, 2023.
“We had another solid quarter across the board with strength in Sprinklr Service product suite and a record level of profitability. Our teams continue to innovate across our unified-CXM platform with new features and enhancements to our AI+ strategy. We’re encouraged by customers’ growing demand to unify their front-office teams and technology leading to better customer experiences,” said Ragy Thomas, Founder and CEO at Sprinklr.

Second Quarter Fiscal 2023 Financial Highlights
•Revenue: Total revenue for the second quarter was $178.5 million, up from $150.6 million one year ago, an increase of 18% year-over-year. Subscription revenue for the second quarter was $163.5 million, up from $133.1 million one year ago, an increase of 23% year-over-year.
•Operating Income (Loss) and Margin*: Second quarter operating income was $5.5 million, compared to an operating loss of $21.7 million one year ago. Non-GAAP operating income was $21.3 million, compared to a non-GAAP operating loss of $4.9 million one year ago. For the second quarter, GAAP operating margin was 3% and non-GAAP operating margin was 12%.
•Net Income (Loss) Per Share*: Second quarter net income per share, basic was $0.04, compared to net loss per share, basic of $0.09 in the second quarter of fiscal year 2023. Non-GAAP net income per share, basic for the second quarter was $0.10, compared to non-GAAP net loss per share, basic of $0.03 in the second quarter of fiscal year 2023.
•Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of July 31, 2023 was $628.4 million.

* Free cash flow, Non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) 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 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 third fiscal quarter ending October 31, 2023:
•Subscription revenue between $164 million and $166 million.
•Total revenue between $179 million and $181 million.
•Non-GAAP operating income between $15 million and $17 million.
•Non-GAAP net income per share between $0.06 and $0.07, assuming 274 million basic weighted-average shares outstanding.

Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2024:
•Subscription revenue between $658 million and $660 million.
•Total revenue between $719 million and $721 million.
•Non-GAAP operating income between $65 million and $67 million.
•Non-GAAP net income per share between $0.30 and $0.31, assuming 273 million basic weighted-average shares outstanding.

Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures associated with our condensed consolidated statements of operations:
•Non-GAAP gross profit and non-GAAP gross margin
•Non-GAAP operating income (loss) and non-GAAP operating margin
•Non-GAAP net income (loss) and non-GAAP net income (loss) 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 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 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 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, September 6, 2023, to discuss second quarter fiscal 2024 financial results, as well as the third quarter and full year fiscal 2024 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 13740665. 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 1,400 global enterprises — brands like Microsoft, P&G, Samsung and more than 50% of the Fortune 100.

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 third quarter and full year fiscal 2024, our growth strategy and the ability of our platform to deliver a unified experience to address our customers’ demands. 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 April 30, 2023, filed with the SEC on June 5, 2023, under the caption “Risk Factors,” and in other filings that we make from time to time with the SEC. 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.

Investor Relations:
ir@sprinklr.com

Media & Press:
PR@sprinklr.com



Sprinklr, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
July 31,
2023		January 31,
2023
Assets
Current assets:
Cash and cash equivalents$147,683 $188,387 
Marketable securities480,725 390,239 
Accounts receivable, net of allowance for doubtful accounts of $3.6 million and $3.2 million, respectively
177,442 205,038 
Prepaid expenses and other current assets72,039 78,865 
Total current assets877,889 862,529 
Property and equipment, net27,622 22,885 
Goodwill and other intangible assets50,254 50,349 
Operating lease right-of-use assets30,094 15,725 
Other non-current assets86,794 73,503 
Total assets$1,072,653 $1,024,991 
Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable$22,791 $30,101 
Accrued expenses and other current liabilities70,800 97,524 
Operating lease liabilities, current6,868 7,134 
Deferred revenue322,944 324,140 
Total current liabilities423,403 458,899 
Deferred revenue, non-current488 1,371 
Deferred tax liability, non-current1,303 1,289 
Operating lease liabilities, non-current24,984 9,633 
Other liabilities, non-current5,189 4,467 
Total liabilities455,367 475,659 
Commitments and contingencies
Stockholders’ equity
Class A common stock4 3 
Class B common stock4 6 
Treasury stock(23,831)(23,831)
Additional paid-in capital1,128,689 1,074,149 
Accumulated other comprehensive loss(4,262)(4,384)
Accumulated deficit(483,318)(496,611)
Total stockholders’ equity617,286 549,332 
Total liabilities and stockholders’ equity$1,072,653 $1,024,991 



Sprinklr, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
2023202220232022
Revenue:
  Subscription $163,452 $133,075 $321,117 $260,395 
  Professional services15,01317,55530,71135,213
Total revenue178,465 150,630 351,828 295,608 
Costs of revenue:
  Costs of subscription (1)
27,78325,40255,25950,510
  Costs of professional services (1)
15,68416,75730,14533,370
Total costs of revenue43,467 42,159 85,404 83,880 
Gross profit134,998 108,471 266,424 211,728 
Operating expense:
  Research and development (1)
24,32319,98945,08437,323
  Sales and marketing (1)
80,11886,942169,320173,880
  General and administrative (1)
25,06823,21549,72445,328
Total operating expense129,509 130,146 264,128 256,531 
Operating income (loss)5,489 (21,675)2,296 (44,803)
Other income (expense), net7,237(84)11,996211
Income (loss) before provision for income taxes12,726 (21,759)14,292 (44,592)
Provision for income taxes2,2412,1689994,623
Net income (loss)$10,485 $(23,927)$13,293 $(49,215)
Net income (loss) per share, basic$0.04 $(0.09)$0.05 $(0.19)
Weighted average shares used in computing net income (loss) per share, basic268,900258,785267,271257,860
Net income (loss) per share, diluted$0.04 $(0.09)$0.05 $(0.19)
Weighted average shares used in computing net income (loss) per share, diluted283,853258,785 282,951257,860
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
Three Months Ended July 31, Six Months Ended July 31,
(in thousands)2023202220232022
Costs of subscription $290 $389 $590 $798 
Costs of professional services405 779 808 1,402 
Research and development3,897 3,148 6,964 5,496 
Sales and marketing6,311 7,809 12,266 13,665 
General and administrative3,962 4,072 7,547 7,350 
Stock-based compensation expense, net of amounts capitalized$14,865 $16,197 $28,175 $28,711 





Sprinklr, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended July 31,
20232022
Cash flow from operating activities:
Net income (loss)$13,293 $(49,215)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense7,329 5,502 
Bad debt expense1,149 1,484 
Stock-based compensation expense, net of amounts capitalized28,175 28,711 
Non-cash lease expense2,998 3,002 
Deferred income taxes(3,402)— 
Net amortization/accretion on marketable securities(7,998)577 
Other non-cash items, net 39 — 
Changes in operating assets and liabilities:
Accounts receivable26,474 18,452 
Prepaid expenses and other current assets7,917 14,245 
Other non-current assets(4,874)(393)
Accounts payable(7,897)22,618 
Operating lease liabilities(2,896)(3,730)
Accrued expenses and other current liabilities(25,632)(18,714)
Litigation settlement— (12,000)
Deferred revenue(2,156)(6,280)
Other liabilities616 (1,285)
Net cash provided by operating activities33,135 2,974 
Cash flow from investing activities:
Purchases of marketable securities(288,727)(448,083)
Sales of marketable securities380 2,838 
Maturities of marketable securities205,911 267,699 
Purchases of property and equipment(4,413)(2,352)
Capitalized internal-use software(5,744)(5,016)
Net cash used in investing activities(92,593)(184,915)
Cash flow from financing activities:
Proceeds from issuance of common stock upon exercise of stock options21,350 10,429 
Proceeds from issuance of common stock upon ESPP purchase3,970 6,213 
Net cash provided by financing activities25,320 16,642 
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(89)(1,919)
Net change in cash, cash equivalents and restricted cash(34,227)(167,218)
Cash, cash equivalents and restricted cash at beginning of period188,387 321,426 
Cash, cash equivalents and restricted cash at end of period$154,160 $154,208 




Sprinklr, Inc.
Reconciliation of Non-GAAP Measures
(in thousands)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
2023202220232022
Non-GAAP gross profit and non-GAAP gross margin:
U.S. GAAP gross profit$134,998 $108,471 $266,424 $211,728 
Stock-based compensation expense-related charges (1)
710 1,212 1,423 2,246 
Non-GAAP gross profit$135,708 $109,683 $267,847 $213,974 
Gross margin76 %72 %76 %72 %
Non-GAAP gross margin76 %73 %76 %72 %
Non-GAAP operating income (loss):
U.S. GAAP operating income (loss)$5,489 $(21,675)$2,296 $(44,803)
Stock-based compensation expense-related charges (2)
15,724 16,615 29,839 29,319 
Amortization of acquired intangible assets50 133 100 265 
Non-GAAP operating income (loss)$21,263 $(4,927)$32,235 $(15,219)
Operating margin3 %(14)%1 %(15)%
Non-GAAP operating margin12 %(3)%9 %(5)%
Free cash flow:
Net cash provided by operating activities$14,574 $5,884 $33,135 $2,974 
Purchase of property and equipment(2,788)(1,714)(4,413)(2,352)
Capitalized internal-use software(3,061)(2,728)(5,744)(5,016)
Free cash flow$8,725 $1,442 $22,978 $(4,394)
(1) Employer payroll tax related to stock-based compensation for the periods ended July 31, 2023 and 2022 was immaterial as it relates to the impact to gross profit.
(2) Includes $0.9 million and $0.4 million of employer payroll tax related to stock-based compensation expense for the three months ended July 31, 2023 and 2022, respectively, and $1.7 million and $0.6 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2023 and 2022, respectively.




Three Months Ended July 31,
20232022
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP Net Income (Loss) reconciliation to Net Income (Loss)
Net income (loss)$10,485 $0.04 $0.04 $(23,927)$(0.09)$(0.09)
Add:
Stock-based compensation expense-related charges15,724 0.060.0516,615 0.060.06
Amortization of acquired intangible assets50 0.000.00133 0.000.00
Total additions, net15,774 0.06 0.05 16,748 0.06 0.06 
Non-GAAP Net Income (Loss)$26,259 $0.10 $0.09 $(7,179)$(0.03)$(0.03)
Weighted-average shares outstanding used in computing net income (loss) per share, basic268,900 258,785 
Weighted average shares outstanding used in computing net income (loss) per share, diluted283,853 258,785 
Six Months Ended July 31,
20232022
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP Net Income (Loss) reconciliation to Net Income (Loss)
Net income (loss)$13,293 $0.05 $0.05 $(49,215)$(0.19)$(0.19)
Add:
Stock-based compensation expense-related charges29,839 0.110.1029,319 0.110.11
Amortization of acquired intangible assets100 0.000.00265 0.000.00
Total additions, net29,939 0.11 0.10 29,584 0.11 0.11 
Non-GAAP Net Income (Loss)$43,232 $0.16 $0.15 $(19,631)$(0.08)$(0.08)
Weighted-average shares outstanding used in computing net income (loss) per share, basic267,271 257,860 
Weighted average shares outstanding used in computing net income (loss) per share, diluted282,951 257,860