Thu, Jun 5, 8:09 PM (16 days ago)
### Sprinklr, Inc. (CXM) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $205.5 million, up 5% YoY, driven by subscription and professional services growth. - **Gross Margin:** 70%, slightly down from 74% YoY due to increased data and hosting costs. - **Operating Expenses:** $144.6 million, up 4% YoY, with notable increases in sales and marketing and general and administrative expenses. - **Net Income:** $(1.6) million, a decline from $10.6 million YoY due to higher operating expenses and restructuring costs. **Cash Flow:** - **Operating Cash Flow:** $83.8 million, up from $41.7 million YoY, driven by non-cash expenses and changes in operating assets and liabilities. - **Investing Cash Flow:** $(108.0) million, primarily due to purchases of marketable securities. - **Financing Cash Flow:** $2.8 million, mainly from stock option exercises. **Earnings Changes:** - **EPS:** $(0.01), down from $0.04 YoY. - **Non-GAAP EPS:** $0.13, up from $0.09 YoY, excluding stock-based compensation and other non-recurring items. **Quarterly Performance Discussion:** - **Subscription Revenue:** $184.1 million, up 4% YoY, driven by existing customer purchases and new customer demand. - **Professional Services Revenue:** $21.4 million, up 15% YoY, primarily from managed services related to Contact Center as a Service (CCaaS). **Trends and Uncertainties:** - **Macroeconomic Considerations:** Economic uncertainty and inflation may affect customer spending and renewal rates. - **Restructuring:** $16.3 million in restructuring costs due to a 12% global workforce reduction. - **Share Repurchase Program:** $150 million authorized for repurchase of Class A common stock through June 30, 2026. **Future Operations Impact:** - **Growth Strategies:** Continued investment in the Unified-CXM platform and new product features. - **Risk Factors:** Dependence on customer renewals, competition, and regulatory compliance. **Legal and Regulatory:** - **Pending Litigation:** Securities class action and stockholder derivative actions related to alleged misrepresentations. - **Compliance:** Adherence to data privacy laws and regulations, including GDPR and CCPA. **Financial Health:** - **Liquidity:** Strong liquidity position with $126.4 million in cash and $443.8 million in marketable securities. - **Debt and Leases:** Commitments include minimum guaranteed purchase commitments and operating leases. **Outlook:** - **Revenue Growth:** Expected to continue, driven by subscription and professional services. - **Profitability:** Focus on cost management and operational efficiency to improve margins. **Conclusion:** Sprinklr, Inc. (CXM) reported mixed Q1 2025 results with revenue growth but a net loss due to higher operating expenses and restructuring costs. The company remains focused on growth through investment in its Unified-CXM platform and managing costs to improve profitability.