Sprinklr Announces Fourth Quarter and Full Year Fiscal 2024 Results
•Q4 Total Revenue of $194.2 million, up 17% year-over-year
•Q4 Subscription Revenue of $177.0 million, up 19% year-over-year
•Q4 net cash provided by operating activities of $17.3 million and free cash flow* of $12.3 million in Q4
•RPO and cRPO up 34% and 21% year-over-year, respectively
•126 $1 million customers, up 17% year-over-year
•In March 2024, Board authorized an incremental $100 million to the existing stock buyback program

NEW YORK, New York--March 27, 2024--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its fourth quarter and fiscal year ended January 31, 2024.
“We are pleased with Sprinklr’s fourth quarter performance and overall success in FY 24. Our vision is clear: to unify customer-facing teams on an AI-powered platform. We’re strengthening our foundation and recruiting top-tier leaders to fuel our next phase of growth. With strong conviction, we believe we are the natural third or fourth front office platform for global brands at the forefront of exceptional customer experience,” said Ragy Thomas, Founder and CEO at Sprinklr.

Fourth Quarter Fiscal 2024 Financial Highlights
•Revenue: Total revenue for the fourth quarter was $194.2 million, up from $165.3 million one year ago, an increase of 17% year-over-year. Subscription revenue for the fourth quarter was $177.0 million, up from $148.3 million one year ago, an increase of 19% year-over-year.
•Operating Income (Loss) and Margin*: Fourth quarter GAAP operating income was $18.5 million, compared to an operating loss of $1.8 million one year ago. Non-GAAP operating income for the fourth quarter was $32.4 million, compared to non-GAAP operating income of $14.3 million one year ago. For the fourth quarter, GAAP operating margin was 10% and non-GAAP operating margin was 17%.
•Net Income (Loss) Per Share*: Fourth quarter net income per share, basic was $0.08, compared to net loss per share, basic of $0.00 in the fourth quarter of fiscal year 2023. Non-GAAP net income per share, basic for the fourth quarter was $0.13, compared to non-GAAP net income per share, basic of $0.06 in the fourth quarter of fiscal year 2023.
•Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of January 31, 2024 was $662.6 million.

Full Year Fiscal 2024 Financial Highlights
•Revenue: Total revenue for fiscal year 2024 was $732.4 million, up from $618.2 million one year ago, an increase of 18% year-over-year. Subscription revenue for fiscal year 2024 was $668.5 million, up from $548.6 million one year ago, an increase of 22% year-over-year.
•Operating Income (Loss) and Margin*: Fiscal year 2024 operating income was $33.9 million, compared to an operating loss of $51.2 million one year ago. Non-GAAP operating income for fiscal year 2024 was $92.0 million, compared to non-GAAP operating income of $6.0 million one year ago. For fiscal year 2024, GAAP operating margin was 5% and non-GAAP operating margin was 13%.
•Net Income (Loss) Per Share*: Fiscal year 2024 net income per share, basic was $0.19, compared to net loss per share, basic of $0.21 in fiscal year 2023. Non-GAAP net income per share, basic for fiscal year 2024 was $0.41, compared to non-GAAP net income per share, basic of $0.01 in fiscal year 2023.

* Free cash flow, non-GAAP operating income, non-GAAP operating margin and non-GAAP net income 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 net 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 first fiscal quarter ending April 30, 2024:
•Subscription revenue between $177.5 million and $178.5 million.
•Total revenue between $194 million and $195 million.
•Non-GAAP operating income between $19.5 million and $20.5 million.
•Non-GAAP net income per share of approximately $0.07, assuming 289 million diluted weighted-average shares outstanding.

Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2025:
•Subscription revenue between $740.5 million and $741.5 million.
•Total revenue between $804.5 million and $805.5 million.
•Non-GAAP operating income between $104 million and $105 million.
•Non-GAAP net income per share between $0.38 and $0.39, assuming 291 million diluted weighted-average shares outstanding.

Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures:
•Non-GAAP gross profit and non-GAAP gross margin
•Non-GAAP operating income and non-GAAP operating margin
•Non-GAAP net income and non-GAAP net income 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 U.S. 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 U.S. 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 U.S. 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, March 27, 2024, to discuss fourth quarter and full year fiscal 2024 financial results, as well as the first quarter and full year fiscal 2025 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 13744962. 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 1,700 valuable enterprises — global brands like Microsoft, P&G, Samsung and more than 60% of the Fortune 100. Sprinklr's value to the enterprise is simple: We un-silo teams to make customers happier.

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 first quarter and full year fiscal 2025, our strategy to support growth and scale and our opportunity to be the partner of choice for global brands at the forefront of exceptional customer experience. 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 October 31, 2023, filed with the SEC on December 6, 2023, under the caption “Risk Factors,” and in other filings that we make from time to time with the SEC, including our Annual Report on Form 10-K for the year ended January 31, 2024. 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.
Consolidated Balance Sheets
(in thousands, except per share data)
January 31,
2024		January 31,
2023
Assets
Current assets:
Cash and cash equivalents$164,024 $188,387 
Marketable securities498,531 390,239 
Accounts receivable, net of allowance for doubtful accounts of $5.3 million and $3.2 million, respectively
267,731 205,038 
Prepaid expenses and other current assets70,690 78,865 
Total current assets1,000,976 862,529 
Property and equipment, net32,176 22,885 
Goodwill and other intangible assets50,145 50,349 
Operating lease right-of-use assets31,058 15,725 
Other non-current assets108,755 73,503 
Total assets$1,223,110 $1,024,991 
Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable$34,691 $30,101 
Accrued expenses and other current liabilities93,187 97,524 
Operating lease liabilities, current5,730 7,134 
Deferred revenue374,552 324,140 
Total current liabilities508,160 458,899 
Deferred revenue, non-current506 1,371 
Deferred tax liability, non-current1,474 1,289 
Operating lease liabilities, non-current27,562 9,633 
Other liabilities, non-current5,704 4,467 
Total liabilities543,406 475,659 
Commitments and contingencies
Stockholders’ equity
Class A common stock4 3 
Class B common Stock4 6 
Treasury stock(23,831)(23,831)
Additional paid-in capital1,182,150 1,074,149 
Accumulated other comprehensive loss(3,836)(4,384)
Accumulated deficit(474,787)(496,611)
Total stockholders’ equity679,704 549,332 
Total liabilities and stockholders’ equity$1,223,110 $1,024,991 



Sprinklr, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended January 31,Year Ended January 31,
2024202320242023
Revenue:
  Subscription $176,960 $148,348 $668,541 $548,649 
  Professional services17,247 16,983 63,81969,541
Total revenue194,207 165,331 732,360 618,190 
Costs of revenue:
  Costs of subscription (1)
30,896 25,517116,032102,276
  Costs of professional services (1)
16,653 13,80863,36961,449
Total costs of revenue47,549 39,325 179,401 163,725 
Gross profit146,658 126,006 552,959 454,465 
Operating expenses:
  Research and development (1)
23,06220,12791,29276,658
  Sales and marketing (1)
77,08383,301321,849336,719
  General and administrative (1)
28,05324,396105,87392,312
Total operating expenses128,198 127,824 519,014 505,689 
Operating income (loss)18,460 (1,818)33,945 (51,224)
Other income, net8,2532,45326,5773,756
Income (loss) before provision for income taxes26,713 635 60,522 (47,468)
Provision for income taxes5,5701,3019,1198,274
Net income (loss)$21,143 $(666)$51,403 $(55,742)
Net income (loss) per share, basic$0.08 $— $0.19 $(0.21)
Weighted average shares used in computing net income (loss) per share, basic274,062262,087269,974259,530
Net income (loss) per share, diluted$0.07 $— $0.18 $(0.21)
Weighted average shares used in computing net income (loss) per share, diluted288,517262,087287,093259,530
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
Three Months Ended January 31,Year Ended January 31,
(in thousands)2024202320242023
Costs of subscription $272 $449 $1,130 $1,528 
Costs of professional services311 479 1,450 2,249 
Research and development2,474 2,978 11,566 10,678 
Sales and marketing6,079 7,915 24,477 26,651 
General and administrative4,516 3,776 17,134 14,411 
Stock-based compensation expense, net of amounts capitalized$13,652 $15,597 $55,757 $55,517 



Sprinklr, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Year ended January 31,
20242023
Cash flow from operating activities:
Net income (loss)$51,403 $(55,742)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense15,466 12,051 
Bad debt expense5,906 4,079 
Stock-based compensation expense, net of amounts capitalized55,757 55,517 
Non-cash lease expense8,352 6,588 
Deferred income taxes(2,668)166 
Net amortization/accretion on marketable securities(17,009)(2,697)
Other non-cash items, net 107 — 
Changes in operating assets and liabilities:
Accounts receivable(68,709)(44,751)
Prepaid expenses and other current assets8,675 29,092 
Other non-current assets(25,577)(24,376)
Accounts payable3,325 14,463 
Operating lease liabilities(8,019)(6,342)
Accrued expenses and other current liabilities(6,515)6,688 
Litigation settlement— (12,000)
Deferred revenue49,813 41,465 
Other liabilities1,158 2,459 
Net cash provided by operating activities71,465 26,660 
Cash flow from investing activities:
Purchases of marketable securities(604,648)(816,708)
Proceeds from sales and maturities of marketable securities514,403 639,663 
Purchases of property and equipment(8,548)(6,091)
Capitalized internal-use software(11,777)(10,358)
Net cash used in investing activities(110,570)(193,494)
Cash flow from financing activities:
Proceeds from issuance of common stock upon exercise of stock options43,333 24,740 
Proceeds from issuance of common stock upon ESPP purchase7,437 10,231 
Payments for repurchase of Class A common shares(26,684)— 
Net cash provided by financing activities24,086 34,971 
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash(939)(1,176)
Net change in cash, cash equivalents, and restricted cash(15,958)(133,039)
Cash, cash equivalents and restricted cash at beginning of period
188,387 321,426 
Cash, cash equivalents and restricted cash at end of period
$172,429 $188,387 




Sprinklr, Inc.
Reconciliation of Non-GAAP Measures
(in thousands)
(unaudited)
Three Months Ended January 31,Year Ended January 31,
2024202320242023
Non-GAAP gross profit:
GAAP gross profit$146,658 $126,006 $552,959 $454,465 
Stock-based compensation expense-related charges (1)
590 936 2,625 3,861 
Non-GAAP gross profit$147,248 $126,942 $555,584 $458,326 
Gross margin76 %76 %76 %74 %
Non-GAAP gross margin76 %77 %76 %74 %
Non-GAAP operating income:
GAAP operating income (loss)$18,460 $(1,818)$33,945 $(51,224)
Stock-based compensation expense-related charges (2)
13,859 16,045 57,902 56,704 
Amortization of acquired intangible assets50 76 200 475 
Non-GAAP operating income$32,369 $14,303 $92,047 $5,955 
Operating margin10 %(1)%5 %(8)%
Non-GAAP operating margin17 %9 %13 %1 %
Free cash flow:
Net cash provided by operating activities$17,303 $22,074 $71,465 $26,660 
Purchase of property and equipment(2,054)(3,168)(8,548)(6,091)
Capitalized internal-use software(2,986)(2,625)(11,777)(10,358)
Free cash flow$12,263 $16,281 $51,140 $10,211 
(1) Employer payroll tax related to stock-based compensation for the periods ended January 31, 2024, and 2023 was immaterial as to the impact to gross profit.
(2) Includes $0.2 million and $0.5 million of employer payroll tax related to stock-based compensation expense for the three months ended January 31, 2024, and 2023, respectively, and $2.1 million and $1.2 million of employer payroll tax related to stock-based compensation expense for the years ended January 31, 2024, and 2023, respectively.



Three Months Ended January 31,
20242023
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP Net Income reconciliation to Net Income (Loss)
Net income (loss)$21,143 $0.08 $0.07 $(667)$— $— 
Add:
Stock-based compensation expense-related charges13,859 0.050.0516,045 0.060.06
Amortization of acquired intangible assets50 0.000.0076 0.000.00
Total additions, net13,909 0.05 0.05 16,121 0.06 0.06 
Non-GAAP Net Income$35,052 $0.13 $0.12 $15,454 $0.06 $0.06 
Weighted-average shares outstanding used in computing net income (loss) per share, basic274,062 262,087 
Weighted average shares outstanding used in computing net income (loss) per share, diluted288,517 262,087 
Year Ended January 31,
20242023
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP Net Income reconciliation to Net Income (Loss)
Net income (loss)$51,403 $0.19 $0.18 $(55,742)$(0.21)$(0.21)
Add:
Stock-based compensation expense-related charges57,902 0.220.2056,704 0.220.22
Amortization of acquired intangible assets200 0.000.00475 0.000.00
Total additions, net58,102 0.22 0.20 57,179 0.22 0.22 
Non-GAAP Net Income$109,505 $0.41 $0.38 $1,437 $0.01 $0.01 
Weighted-average shares outstanding used in computing net income (loss) per share, basic269,974 259,530 
Weighted average shares outstanding used in computing net income (loss) per share, diluted287,093 259,530