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

Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

Net Income Per Share

6 Months Ended

Jul. 31, 2024

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

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


	Three Months Ended July 31,				Six Months Ended July 31,
(in thousands, except per share data)	2024		2023		2024		2023
Net income per share – basic:
Numerator:
Net income	$	1,841	$	10,485	$	12,475	$	13,293
Denominator:
Weighted-average shares outstanding used in computing net income per share, basic	260,830		268,900		266,187		267,271
Net income per common share, basic	$	0.01	$	0.04	$	0.05	$	0.05
Net income per share – diluted:
Numerator:
Net income	$	1,841	$	10,485	$	12,475	$	13,293
Denominator:
Weighted-average shares outstanding used in computing net income per share, basic	260,830		268,900		266,187		267,271
Weighted-average effect of diluted securities:
Stock options	7,953		11,259		9,021		11,128
RSUs	3,057		3,069		4,167		4,072
Common stock warrants	94		625		320		480

Weighted-average shares outstanding used in computing net income per share, diluted	271,934		283,853		279,695		282,951
Net income per common share, diluted	$	0.01	$	0.04	$	0.04	$	0.05

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)	2024	2023	2024	2023
Stock options	5,364	2,591	5,171	6,705
PSUs	780	1,330	780	1,330
RSUs	3,212	650	1,426	692
ESPP	84	164	92	321

Total shares excluded from net income per share	9,440	4,735	7,469	9,048