Stock-Based Compensation |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Stock-Based Compensation Equity Award Plans
The Company has two equity incentive plans, the Sprinklr, Inc. 2021 Equity Incentive Plan (the “2021 Plan”) and the Sprinklr, Inc. 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan was terminated as to future awards in June 2021 upon the adoption of the 2021 Plan, although it continues to govern the terms of any equity grants that remain outstanding under the 2011 Plan.
The 2021 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), performance-based stock units (“PSUs”) and other forms of awards to employees, directors and consultants, including employees and consultants of the Company’s affiliates, as permitted by law.
In June 2021, the Company also adopted its ESPP, under which employees can purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of each offering period and (ii) the last trading day of each related offering period.
Summary of Stock Option Activity
A summary of the Company’s stock option activity for the three months ended April 30, 2025 is as follows:
Summary of Restricted Stock Unit Activity
A summary of the Company’s RSU activity for the three months ended April 30, 2025 is as follows:
Summary of Performance-Based Stock Units Activity
A summary of the Company’s PSU activity for the three months ended April 30, 2025 is as follows:
As of April 30, 2025, the Company had 660,000 PSUs outstanding associated with a January 2021 grant (“2021 PSUs”). These awards vest over a five-year period if certain performance and market conditions are met. The performance condition was met in June 2021 and the market conditions have not yet been met as of April 30, 2025. If the market conditions are not met on or prior to January 28, 2026, the 2021 PSUs will not vest and will be subsequently cancelled.
In November 2024, the Company granted 2,137,500 PSUs to its new CEO that vest after a three-year period if certain market and performance conditions are met (“2024 PSUs”). Seventy-five percent of the 2024 PSUs are associated with a market condition and twenty-five percent of the 2024 PSUs are associated with a performance condition (“Performance Condition 2024 PSUs”). The number of shares to be issued will range from zero to 4,275,000, or between zero and 200%, depending on the achievement level of the market and performance conditions. If the market or performance conditions are not met on November 5, 2027, the associated awards will not vest and will be subsequently cancelled. As of April 30, 2025, it was deemed probable that 100% of the Performance Condition 2024 PSUs will vest. As of April 30, 2025, the Company had 2,137,500 2024 PSUs outstanding.
In February 2025, the Company granted 166,668 PSUs to its new Chief Administrative Officer (“CAO”), vesting after approximately a three-year period if certain market and performance conditions are met (“2025 CAO PSUs”). Similar to the 2024 PSUs, seventy-five percent of the 2025 CAO PSU are associated with a market condition relating to total shareholder return (“Market Condition 2025 CAO PSUs”) and twenty-five percent of the 2025 CAO PSUs are associated with a performance condition relating to the achievement of an internal metric calculated based on revenue and non-GAAP operating income growth over an approximately three-year period (“Performance Condition 2025 CAO PSUs”). The number of shares to be issued will range from zero to 333,336 shares in the aggregate as each of the Market Condition 2025 CAO PSUs and Performance Condition 2025 CAO PSUs will vest between zero and 200% depending on the achievement level of the market and performance conditions, respectively. If the market or performance conditions are not met on November 5, 2027, the associated awards will not vest and will be subsequently cancelled.
To determine the fair value of the Market Condition 2025 CAO PSUs, the Company utilized a Monte Carlo simulation, a computational algorithm which allowed the Company to model the impact of one or more, often uncertain, variables on the value of complex securities and evaluate many possible outcomes to forecast the stock price of the Company. The Company applied an annual equity volatility of 49.4%, a risk-free rate of 4.22%, a fair value of common stock of $8.98, an expected dividend yield of zero and an expected term of three years to arrive at a valuation of $13.55 on the grant date. To determine the fair value of the Performance Condition 2025 CAO PSUs, a stock price of $8.98 per share was utilized, as the observable market price on grant date is the best measure of fair value. As of April 30, 2025, it was deemed probable that 100% of the Performance Condition 2025 CAO PSUs will vest. As of April 30, 2025, the Company had 166,668 2025 CAO PSUs outstanding.
In March 2025, the Company granted 482,851 PSUs to members of its executive leadership team (“ELT”), vesting after approximately a three-year period if certain market conditions are met (“2025 ELT PSU”). Similar to the 2024 PSUs and 2025 CAO PSUs, seventy-five percent of the 2025 ELT PSUs are associated with a market condition relating to total shareholder return (“Market Condition 2025 ELT PSUs”) and twenty-five percent of the 2025 ELT PSUs are associated with a performance condition relating to the achievement of an internal metric calculated based on revenue and non-GAAP operating income growth over a three-year period (“Performance Condition 2025 ELT PSUs”). The number of shares to be issued will range from zero to 965,702 shares in the aggregate as each of the Market Condition 2025 ELT PSUs and Performance Condition 2025 ELT PSUs will vest between zero and 200% depending on the achievement level of the market and performance conditions, respectively. If the market or performance conditions are not met on January 31, 2028, the associated awards will not vest and will be subsequently cancelled.
To determine the fair value of the Market Condition 2025 ELT PSUs, the Company utilized a Monte Carlo simulation. The Company applied an annual equity volatility of 50.8%, a risk-free rate of 3.96%, fair value of common stock of $9.14, an expected dividend yield of zero and an expected term of three years to arrive at a valuation of $14.84 on the grant date. To determine the fair value of the Performance Condition 2024 PSUs, the stock price of $9.14 per share was utilized, as the observable market price on grant date is the best measure of fair value. As of April 30, 2025, it was deemed probable that 100% of the Performance Condition 2025 ELT PSUs will vest. As of April 30, 2025, the Company had 482,851 2025 ELT PSUs outstanding.
Stock-Based Compensation Expense
Stock-based compensation expense included in operating results was allocated as follows:
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