Sprinklr Inc., a leading customer experience management (CXM) platform provider, announced its second-quarter financial results after the market closed on Wednesday. The company reported earnings of six cents per share, falling short of the analyst consensus estimate of seven cents. However, Sprinklr exceeded revenue expectations, generating $197.21 million in sales, surpassing the analyst estimate of $194.5 million by 1.39%. This represents a 10.5% increase compared to the same period last year.
The company’s subscription revenue, a key metric, also saw growth, reaching $177.9 million, up 9% year-over-year. Sprinklr also reported a positive net cash flow from operating activities of $21.3 million and a free cash flow of $16.5 million. Notably, the company’s remaining performance obligations (RPO) and current RPO (cRPO) grew by 10% and 9% year-over-year, respectively. Sprinklr’s customer base continued to expand, reaching 145 customers generating over $1 million in revenue, reflecting a 21% year-over-year increase.
Despite the challenges in the current market, Sprinklr remains optimistic about its future. “In the second quarter, we continued to expand our customer base with our industry-recognized AI-powered platform and delivered our seventh consecutive quarter of free cash flow,” said Ragy Thomas, Sprinklr founder and co-CEO. “As we work through continued market challenges, we are taking decisive steps to strengthen our foundation to reaccelerate growth and expand margins — a process that will take several quarters.” Thomas added, “Despite these challenges, we believe that Sprinklr remains uniquely positioned to help large global enterprises unlock and deploy the power of AI across the front office, as demonstrated by multiple global deals won this quarter across all our product suites.”
Looking ahead, Sprinklr anticipates revenue for the third quarter to be between $196 million and $197 million, with earnings per share expected to be approximately eight cents. The company also raised its fiscal-year revenue forecast from between $779 million and $781 million to between $785 million and $787 million, surpassing the consensus estimate of $780.39 million. However, Sprinklr lowered its earnings outlook for the fiscal year from between 40 cents and 41 cents per share to a range of 32 cents to 33 cents per share, compared to the 41-cent estimate.
In after-hours trading on Wednesday, Sprinklr shares fell 3.38%, closing at $8.30.
