Q1 2027 Sprinklr Inc Earnings Call Transcript
Key Points
- Sprinklr Inc (CXM) reported a 7% year-over-year increase in total revenue, reaching $219.5 million, with subscription revenue growing by 6% to $194.8 million.
- The company achieved a non-GAAP operating income of $31.7 million, representing a 14% non-GAAP operating margin.
- Sprinklr Inc (CXM) signed the largest software deal in its history, a multiyear platform agreement with a leading global consumer electronics company.
- The company is seeing strong growth in its AI-native SKUs, with ARR up 47% year-over-year, and over 180 AI projects underway.
- Sprinklr Inc (CXM) has a debt-free balance sheet and generated $65.8 million in free cash flow in Q1, representing a 30% free cash flow margin.
- Sprinklr Inc (CXM) experienced some pressure in the Middle East, with $3 million to $4 million in deals slipping due to regional challenges.
- The company expects professional services revenue to decline by 13% year-over-year in Q2, impacting overall revenue growth.
- Non-GAAP operating income is expected to moderate in Q2 due to lower professional services revenue and increased investment in AI.
- Sprinklr Inc (CXM) is facing higher data and hosting costs, impacting gross margins, particularly in its AI and service delivery segments.
- The company is no longer disclosing its $1 million customer cohort metric, which may raise concerns about transparency in customer growth and retention.
Greetings and welcome to the Sprinklr Q1 Fiscal Year 2027 Earnings Call. At this time, all participants are in your listen-only mode.
A question-and-answer session will follow the formal presentation.
You may be placed in the question queue at any time by pressing star one on your telephone keypad and we ask you please limit yourselves to one question and one follow-up.
As a reminder, this conference is being recorded. If anyone could require operator assistance, please press *0. It's now my pleasure to turn the call over to Eric Spro, Head of Investor Relations. Eric, please go ahead.
Ladies and gentlemen, I do apologize. I will now turn the call over to Head of Investor Relations, Eric Stroh. Please go ahead.
Thank you, operator, and welcome everyone to Sprinklr's first quarter fiscal year 2027 financial results call. Joining us today are Rory Reed, Sprinklr's President and CEO and Anthony Coletta, Sprinklr's Chief Financial Officer. We issued our earnings release a short time ago, filed a related Form 8-K with the
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