Sprinklr Announces Third Quarter Fiscal 2025 Results
•Q3 Total Revenue of $200.7 million, up 8% year-over-year
•Q3 Subscription Revenue of $180.6 million, up 6% year-over-year
•Q3 net cash provided by operating activities of $9.2 million and free cash flow* of $4.9 million
•RPO and cRPO up 17% and 11% year-over-year, respectively
•147 $1 million customers, up 20% year-over-year


NEW YORK, New York--December 4, 2024--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its third fiscal quarter ended October 31, 2024.
“Sprinklr’s third quarter results delivered a 12% non-GAAP operating margin and positive free cash flow,” said Rory Read, Sprinklr’s President and CEO. Read continued, “Since joining the company, I have seen first-hand the strengths that set us apart: our industry-leading technology, exceptional roster of customers and partners, and a strong market fit. While there is work ahead in becoming a Rule of 40 company, we are confident in our ability to accelerate growth and deliver meaningful margin expansion - creating value for our customers, partners and stockholders.”

Third Quarter Fiscal 2025 Financial Highlights
•Revenue: Total revenue for the third quarter was $200.7 million, up from $186.3 million one year ago, an increase of 8% year-over-year. Subscription revenue for the third quarter was $180.6 million, up from $170.5 million one year ago, an increase of 6% year-over-year.
•Operating Income and Margin*: Third quarter GAAP operating income was $7.9 million, compared to operating income of $13.2 million one year ago. Non-GAAP operating income was $23.3 million, compared to non-GAAP operating income of $27.4 million one year ago. For the third quarter, GAAP operating margin was 4% and non-GAAP operating margin was 12% compared to GAAP operating margin of 7% and non-GAAP operating margin of 15% in the third quarter of fiscal year 2024.
•Net Income Per Share*: Third quarter GAAP net income per share, diluted was $0.04, compared to net income per share, diluted of $0.06 in the third quarter of fiscal year 2024. Non-GAAP net income per share, diluted for the third quarter was $0.10, compared to non-GAAP net income per share, diluted of $0.11 in the third quarter of fiscal year 2024.
•Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of October 31, 2024 was $476.6 million.

* 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, net income or net income 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 fourth fiscal quarter ending January 31, 2025:
•Subscription revenue between $180 million and $181 million.
•Total revenue between $200 million and $201 million.
•Non-GAAP operating income between $17.5 million and $18.5 million.
•Non-GAAP net income per share of approximately $0.07 assuming 265 million diluted weighted-average shares outstanding.

Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2025:
•Subscription revenue between $715.9 million and $716.9 million.
•Total revenue between $793.9 million and $794.9 million.
•Non-GAAP operating income between $76.4 million and $77.4 million.
•Non-GAAP net income per share between $0.31 and $0.32, assuming 275 million diluted weighted-average shares outstanding.



Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S. GAAP, we believe that the following non-GAAP financial measures associated with our condensed consolidated statements of operations are useful in evaluating our operating performance:
•Non-GAAP gross profit and non-GAAP gross margin;
•Non-GAAP operating income and non-GAAP operating margin; and
•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 and 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 addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow 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 respective 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, December 4, 2024, to discuss third quarter fiscal 2025 financial results, as well as the fourth 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 13750163. 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 1,800 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 fourth quarter and full year fiscal 2025, the impact of, and our ability to execute, our corporate strategies and business initiatives, including our ability to accelerate growth and deliver meaningful margin expansion, our expectations regarding our free cash flow, stock-based compensation expense-related charges and amortization of acquired intangible assets. 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 fluctuations in inflation and interest rates, 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 July 31, 2024, filed with the SEC on September 4, 2024, 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 revenues 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 revenues 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)
(unaudited)
October 31,
2024		January 31,
2024
Assets
Current assets:
Cash and cash equivalents$93,239 $164,024 
Marketable securities383,404 498,531 
Accounts receivable, net of allowance of $9.0 million and $5.3 million, respectively
174,218 267,731 
Prepaid expenses and other current assets78,916 70,690 
Total current assets729,777 1,000,976 
Property and equipment, net33,146 32,176 
Goodwill and other intangible assets49,913 50,145 
Operating lease right-of-use assets47,467 31,058 
Other non-current assets109,998 108,755 
Total assets$970,301 $1,223,110 
Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable$32,693 $34,691 
Accrued expenses and other current liabilities67,923 93,187 
Operating lease liabilities, current7,228 5,730 
Deferred revenue311,009 374,552 
Total current liabilities418,853 508,160 
Deferred revenue, non-current2,737 506 
Deferred tax liability, non-current1,475 1,474 
Operating lease liabilities, non-current43,930 27,562 
Other liabilities, non-current6,282 5,704 
Total liabilities473,277 543,406 
Commitments and contingencies
Stockholders’ equity
Class A common stock4 4 
Class B common stock4 4 
Treasury stock(23,831)(23,831)
Additional paid-in capital1,249,724 1,182,150 
Accumulated other comprehensive loss(4,031)(3,836)
Accumulated deficit(724,846)(474,787)
Total stockholders’ equity497,024 679,704 
Total liabilities and stockholders’ equity$970,301 $1,223,110 



Sprinklr, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2024202320242023
Revenue:
Subscription$180,634 $170,464 $535,856 $491,581 
Professional services20,05515,86157,99946,572
Total revenue200,689 186,325 593,855 538,153 
Costs of revenue:
  Costs of subscription (1)
35,72329,877102,59985,136
  Costs of professional services (1)
22,09816,57160,66346,716
Total costs of revenue57,821 46,448 163,262 131,852 
Gross profit142,868 139,877 430,593 406,301 
Operating expense:
  Research and development (1)
23,28023,14669,44168,230
  Sales and marketing (1)
77,57675,446245,557244,766
  General and administrative (1)
34,12328,096102,08477,820
Total operating expense134,979 126,688 417,082 390,816 
Operating income7,889 13,189 13,511 15,485 
Other income, net
5,4956,32819,40918,324
Income before provision for income taxes13,384 19,517 32,920 33,809 
Provision for income taxes2,9292,5509,9903,549
Net income$10,455 $16,967 $22,930 $30,260 
Net income per share, basic$0.04 $0.06 $0.09 $0.11 
Weighted average shares used in computing net income per share, basic253,807271,202262,030268,596
Net income per share, diluted$0.04 $0.06 $0.08 $0.11 
Weighted average shares used in computing net income per share, diluted261,972288,121 275,109285,985
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
Three Months Ended October 31, Nine Months Ended October 31,
(in thousands)2024202320242023
Costs of subscription $335 $268 $945 $858 
Costs of professional services400 331 1,081 1,139 
Research and development2,896 2,128 8,304 9,092 
Sales and marketing5,091 6,132 16,497 18,398 
General and administrative6,508 5,071 17,350 12,618 
Stock-based compensation expense, net of amounts capitalized$15,230 $13,930 $44,177 $42,105 





Sprinklr, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended October 31,
20242023
Cash flow from operating activities:
Net income$22,930 $30,260 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense13,815 11,283 
Provision for credit losses12,413 3,370 
Stock-based compensation, net of amounts capitalized44,177 42,105 
Non-cash lease expense6,186 6,102 
Deferred income taxes38 (3,205)
Net amortization/accretion on marketable securities(9,830)(12,379)
Other non-cash items, net207 56 
Changes in operating assets and liabilities:
Accounts receivable80,653 47,876 
Prepaid expenses and other current assets(9,129)2,246 
Other non-current assets(1,867)(8,424)
Accounts payable(1,653)(8,878)
Operating lease liabilities(3,928)(6,098)
Accrued expenses and other current liabilities(21,929)(23,744)
Deferred revenue(60,462)(26,807)
Other liabilities604 399 
Net cash provided by operating activities72,225 54,162 
Cash flow from investing activities:
Purchases of marketable securities(329,258)(443,850)
Proceeds from sales and maturities of marketable securities
453,863 362,797 
Purchases of property and equipment(5,000)(6,494)
Capitalized internal-use software(9,609)(8,791)
Net cash provided by (used in) investing activities109,996 (96,338)
Cash flow from financing activities:
Proceeds from issuance of common stock upon exercise of stock options18,919 32,331 
Proceeds from issuance of common stock upon ESPP purchases3,403 3,970 
Payments for repurchase of Class A common shares(273,873)— 
Net cash (used in) provided by financing activities(251,551)36,301 
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(1,596)(1,648)
Net change in cash, cash equivalents and restricted cash(70,926)(7,523)
Cash, cash equivalents and restricted cash at beginning of period172,429 188,387 
Cash, cash equivalents and restricted cash at end of period$101,503 $180,864 



Sprinklr, Inc.
Reconciliation of Non-GAAP Measures
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2024202320242023
Non-GAAP gross profit and non-GAAP gross margin:
U.S. GAAP gross profit$142,868 $139,877 $430,593 $406,301 
Stock-based compensation expense and related charges (1)
740 612 2,064 2,035 
Non-GAAP gross profit$143,608 $140,489 $432,657 $408,336 
Gross margin71 %75 %73 %75 %
Non-GAAP gross margin72 %75 %73 %76 %
Non-GAAP operating income:
U.S. GAAP operating income$7,889 $13,189 $13,511 $15,485 
Stock-based compensation expense and related charges (2)
15,376 14,204 45,243 44,043 
Amortization of acquired intangible assets18 50 118 150 
Non-GAAP operating income$23,283 $27,443 $58,872 $59,678 
Operating margin4 %7 %2 %3 %
Non-GAAP operating margin12 %15 %10 %11 %
Free cash flow:
Net cash provided by operating activities$9,191 $21,027 $72,225 $54,162 
Purchase of property and equipment(972)(2,081)(5,000)(6,494)
Capitalized internal-use software(3,318)(3,047)(9,609)(8,791)
Free cash flow$4,901 $15,899 $57,616 $38,877 
(1) Employer payroll tax related to stock-based compensation for the periods ended October 31, 2024 and 2023 was immaterial as it relates to the impact to gross profit.
(2) Includes $0.1 million and $0.3 million of employer payroll tax related to stock-based compensation for the three months ended October 31, 2024 and 2023, respectively, and $1.1 million and $1.9 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2024 and 2023, respectively.




Three Months Ended October 31,
20242023
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP net income reconciliation to net income
Net income$10,455 $0.04 $0.04 $16,967 $0.06 $0.06 
Add:
Stock-based compensation expense and related charges15,376 0.060.0614,204 0.060.05
Amortization of acquired intangible assets18 0.000.0050 0.000.00
Total additions, net15,394 0.06 0.06 14,254 0.06 0.05 
Non-GAAP net income$25,849 $0.10 $0.10 $31,221 $0.12 $0.11 
Weighted-average shares outstanding253,807 261,972 271,202 288,121 
Nine Months Ended October 31,
20242023
(in thousands)Per Share-BasicPer Share-Diluted(in thousands)Per Share-BasicPer Share-Diluted
Non-GAAP net income reconciliation to net income
Net income$22,930 $0.09 $0.08 $30,260 $0.11 $0.11 
Add:
Stock-based compensation expense and related charges45,243 0.170.1744,043 0.170.15
Amortization of acquired intangible assets118 0.000.00150 0.000.00
Total additions, net45,361 0.17 0.17 44,193 0.17 0.15 
Non-GAAP net income$68,291 $0.26 $0.25 $74,453 $0.28 $0.26 
Weighted-average shares outstanding 262,030 275,109 268,596 285,985