Q3 2025 Sprinklr Inc Earnings Call Transcript
Key Points
- Sprinklr Inc (CXM) reported an 8% year-over-year increase in total revenue, reaching $200.7 million for Q3.
- Subscription revenue grew by 6% year-over-year to $180.6 million, indicating strong demand for Sprinklr's offerings.
- The company achieved a non-GAAP operating income of $23.3 million, resulting in a 12% non-GAAP operating margin.
- Sprinklr Inc (CXM) has a robust customer base with over 1,800 customers, including nearly 150 customers contributing $1 million or more in subscription revenue.
- The company has a healthy balance sheet with $477 million in cash and marketable securities and no debt outstanding.
- Sprinklr Inc (CXM) is currently operating below the Rule of 40, with a combined growth rate and profit margin under 20%, which is considered unsatisfactory by management.
- Professional services gross margin was negative 8%, highlighting inefficiencies in this segment.
- The company is experiencing elevated churn and a lower quantum of new business, which is expected to impact future revenue growth.
- Calculated billings for Q3 decreased by 8% year-over-year, indicating potential challenges in securing new contracts or renewals.
- Sprinklr Inc (CXM) faces challenges in improving sales and marketing efficiency and needs to streamline its go-to-market structure.
Greetings, and welcome to the Sprinklr Q3 fiscal year 2025 earnings call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Eric Scro, VP Finance. Thank you, Eric. You may begin.
Thank you, Alicia, and welcome, everyone, to Sprinklr's third-quarter fiscal year 2025 financial results call. Joining us today are Rory Read, Sprinklr's President and CEO; and Manish Sarin, Chief Financial Officer. We issued our earnings release a short time ago, filed the related Form 8-K with the SEC, and we've made them available on the Investor Relations section of our website, along with the supplementary investor presentation.
Please note that on today's call, management will refer to certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for
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