Sprinklr, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

Net Income (Loss) Per Share

6 Months Ended

Jul. 31, 2023

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. 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 income (loss) per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.

Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted net income (loss) per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units, and other awards. In periods of net loss, 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.

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Three Months Ended July 31,				Six Months Ended July 31,
(in thousands, except per share amounts)	2023		2022		2023		2022
Net income (loss) per share – basic:
Numerator:
Net income (loss)	$	10,485	$	(23,927)	$	13,293	$	(49,215)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic	268,900		258,785		267,271		257,860
Net income (loss) per common share, basic	$	0.04	$	(0.09)	$	0.05	$	(0.19)
Net income (loss) per share – diluted:
Numerator:
Net income (loss)	$	10,485	$	(23,927)	$	13,293	$	(49,215)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic	268,900		258,785		267,271		257,860
Weighted-average effect of diluted securities:
Stock options	11,259		—		11,128		—
RSUs	3,069		—		4,072		—
Common stock warrants	625		—		480		—
Weighted-average shares outstanding used in computing net income (loss) per share, diluted	283,853		258,785		282,951		257,860
Net income (loss) per common share, diluted	$	0.04	$	(0.09)	$	0.05	$	(0.19)

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


	Three Months Ended July 31,		Six Months Ended July 31,
(in thousands)	2023	2022	2023	2022
Stock options	2,591	38,117	6,705	38,117
PSUs and other performance-based awards	1,330	2,295	1,330	2,295
RSUs	650	8,679	692	8,679
ESPP	164	139	321	139
Warrants to purchase common stock	—	2,500	—	2,500
Total shares excluded from net income (loss) per share	4,735	51,730	9,048	51,730