On December 6, 2023, Sprinklr Inc (CXM, Financial) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2024. The company, a leader in unified customer experience management (Unified-CXM), has demonstrated significant growth in revenue and profitability, with total revenue for the quarter reaching $186.3 million, an 18% increase year-over-year. Subscription revenue, a key indicator of the company's core business strength, saw a 22% increase to $170.5 million compared to the same period last year.
Financial Performance Highlights
Sprinklr Inc (CXM, Financial) reported a GAAP operating income of $13.2 million for the third quarter, a substantial improvement from the operating loss of $4.6 million reported in the third quarter of the previous fiscal year. The non-GAAP operating income was even more impressive at $27.4 million, compared to $6.9 million a year ago. This reflects a strong non-GAAP operating margin of 15%.
The company's net income per share on a basic GAAP basis was $0.06, reversing a net loss per share of $0.02 in the same quarter of the previous fiscal year. On a non-GAAP basis, net income per share for the third quarter was $0.12, up from $0.02 year-over-year.
As of October 31, 2023, Sprinklr Inc (CXM, Financial) had a robust balance sheet with total cash, cash equivalents, and marketable securities of $656.4 million.
Operational and Strategic Developments
The company's CEO, Ragy Thomas, highlighted the record levels of profitability supported by the strength in the Sprinklr Service product suite. Thomas emphasized the company's commitment to leveraging generative AI to help customers achieve productivity gains and superior customer experiences.
"We had another solid quarter across the board with record levels of profitability supported by strength in our Sprinklr Service product suite. We're committed to helping customers achieve productivity gains across their front office through leveraging generative AI, turning vast amounts of unstructured data into actionable insights, and unifying their customer-facing teams that result in superior customer experiences," said Ragy Thomas, Founder and CEO at Sprinklr.
Forward Guidance
Looking ahead, Sprinklr Inc (CXM, Financial) provided guidance for the fourth fiscal quarter ending January 31, 2024, with subscription revenue expected to be between $172.5 million and $174.5 million, and total revenue projected between $187.5 million and $189.5 million. The company anticipates non-GAAP operating income to be in the range of $20.3 million to $22.3 million and non-GAAP net income per share between $0.08 and $0.09.
For the full fiscal year ending January 31, 2024, Sprinklr forecasts subscription revenue between $664 million and $666 million, total revenue between $725.5 million and $727.5 million, non-GAAP operating income between $80 million and $82 million, and non-GAAP net income per share between $0.36 and $0.37.
Conclusion
The third quarter fiscal 2024 results from Sprinklr Inc (CXM, Financial) reflect a company that is not only growing its top line but also improving its profitability metrics. With a solid increase in subscription revenue and a positive swing in operating income, the company is well-positioned to continue its growth trajectory. Investors and potential members of GuruFocus.com should consider these promising financials as they evaluate Sprinklr Inc (CXM) as a potential investment.
For a detailed analysis of Sprinklr Inc (CXM, Financial)'s financials, including the full income statement and balance sheet, readers are encouraged to view the complete 8-K filing.
Explore the complete 8-K earnings release (here) from Sprinklr Inc for further details.
