Sprinklr, a leading provider of customer experience management (CXM) solutions, reported mixed financial results for the second quarter of 2024. While the company exceeded revenue expectations, it missed earnings estimates and cut its full-year adjusted earnings per share (EPS) guidance.
Sprinklr reported quarterly earnings of six cents per share, falling short of the analyst consensus estimate of seven cents. However, the company’s quarterly revenue reached $197.21 million, surpassing the analyst consensus estimate of $194.5 million by 1.39%. This represents a 10.5% increase compared to the same period last year.
Despite the mixed results, Sprinklr highlighted its continued progress in expanding its customer base through its AI-powered platform. The company also achieved its seventh consecutive quarter of positive free cash flow.
Ragy Thomas, Sprinklr founder and co-CEO, acknowledged the challenging market conditions and stated that the company is taking proactive measures to strengthen its foundation for future growth and improved margins. This process is expected to take several quarters.
Looking ahead, Sprinklr anticipates third-quarter revenue between $196 million and $197 million, with earnings estimated at approximately eight cents per share. The company also revised its fiscal-year revenue forecast upwards, from $779 million to $781 million to $785 million to $787 million, surpassing the $780.39 million estimate. However, Sprinklr lowered its earnings outlook from 40 to 41 cents per share to a range of 32 to 33 cents per share, compared to the previous estimate of 41 cents per share.
Following the earnings announcement, several analysts adjusted their price targets for Sprinklr stock. Keybanc analyst Jason Ader maintained an Overweight rating on the stock but cut the price target from $16 to $12. Morgan Stanley analyst Elizabeth Porter also maintained an Equal-Weight rating on Sprinklr but lowered the price target from $12 to $10.
The mixed financial performance and revised guidance raise concerns about Sprinklr’s near-term outlook. However, the company’s focus on strengthening its foundation and expanding its customer base suggests a commitment to long-term growth and profitability. Investors will be watching closely as Sprinklr navigates the evolving market landscape and executes its strategic initiatives.
