Sprinklr Announces First Quarter Fiscal 2025 Results and Appoints Trac Pham as Co-Chief Executive Officer
-
Q1 Total Revenue of
$196 .0 million, up13% year-over-year -
Q1 Subscription Revenue of
$177 .4 million, up 12% year-over-year -
Q1 net cash provided by operating activities of
$41 .7 million and free cash flow* of$36 .2 million - RPO and cRPO up30% and 19% year-over-year, respectively
-
138
$1 million customers,up 20% year-over-year -
Through
May 31, 2024 , 14,301,236 shares of Class A common stock have been purchased under the 2024 Share Repurchase Program. InJune 2024 , Board authorized an incremental$100 million to the 2024 Share Repurchase Program. -
Mr. Pham will be Co-CEO, partnering with Founder and Co-CEORagy Thomas in an effort to drive growth and scale
"Despite operating in a more challenging macro environment, we generated strong free cash flow in Q1 and we’re innovating with new products and AI features. While the changes and initiatives we’re implementing will take several quarters to work through, we believe we have the right strategy and leaders in place. We believe that the appointment of
First Quarter Fiscal 2025 Financial Highlights
-
Revenue: Total revenue for the first quarter was
$196.0 million , up from$173.4 million one year ago, an increase of 13% year-over-year. Subscription revenue for the first quarter was$177.4 million , up from$157.7 million one year ago, an increase of 12% year-over-year. -
Operating Income (Loss) and Margin*: First quarter GAAP operating income was
$5.7 million , compared to an operating loss of$3.2 million one year ago. Non-GAAP operating income was$20.4 million , compared to non-GAAP operating income of$11.0 million one year ago. For the first quarter, GAAP operating margin was 3% and non-GAAP operating margin was 10% compared to GAAP operating margin of (2)% and non-GAAP operating margin of 6% in the first quarter of fiscal year 2024. -
Net Income Per Share*: First quarter GAAP net income per share, diluted was
$0.04 , compared to net income per share, diluted of$0.01 in the first quarter of fiscal year 2024. Non-GAAP net income per share, diluted for the first quarter was$0.09 , compared to non-GAAP net income per share, diluted of$0.06 in the first quarter of fiscal year 2024. -
Cash,
Cash Equivalents and Marketable Securities : Total cash, cash equivalents and marketable securities as ofApril 30, 2024 was$610.1 million .
* Free cash flow, non-GAAP operating income, non-GAAP operating margin and non-GAAP net income per share are non-GAAP financial measures defined under “Non-GAAP Financial Measures,” and are reconciled to net cash provided by operating activities, operating income (loss), net income or net income per share, as applicable, the closest comparable GAAP measure, at the end of this release.
Financial Outlook
-
Subscription revenue between
$177.5 million and$178.5 million . -
Total revenue between
$194 million and$195 million . -
Non-GAAP operating income between
$16.5 million and$17.5 million . -
Non-GAAP net income per share between
$0.06 and$0.07 , assuming 277 million diluted weighted-average shares outstanding.
-
Subscription revenue between
$714 million and$716 million . -
Total revenue between
$779 million and$781 million . -
Non-GAAP operating income between
$104 million and$105 million . -
Non-GAAP net income per share between
$0.40 and$0.41 , assuming 276 million diluted weighted-average shares outstanding.
Non-GAAP Financial Measures
In addition to our results determined in accordance with
- Non-GAAP gross profit and non-GAAP gross margin;
- Non-GAAP operating income and non-GAAP operating margin; and
- Non-GAAP net income and non-GAAP net income per share.
We define these non-GAAP financial measures as the respective
In addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters and experience higher collections of accounts receivable in the first half of the year, which results in a decrease in accounts receivable in the first half of the year.
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by
Conference Call Information
About
Forward-Looking Statements
This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the second quarter and full year fiscal 2025, the benefits of
Key Business Metrics
RPO. RPO, or remaining performance obligations, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in future periods.
cRPO. cRPO, or current RPO, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in the next 12 months.
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Condensed Consolidated Balance Sheets |
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(in thousands, except per share data) |
|||||
(unaudited) |
|||||
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|
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|
|
|
|
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Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
126,815 |
|
$ |
164,024 |
Marketable securities |
|
483,264 |
|
|
498,531 |
Accounts receivable, net of allowance of |
|
187,772 |
|
|
267,731 |
Prepaid expenses and other current assets |
|
85,969 |
|
|
70,690 |
Total current assets |
|
883,820 |
|
|
1,000,976 |
Property and equipment, net |
|
32,758 |
|
|
32,176 |
|
|
50,086 |
|
|
50,145 |
Operating lease right-of-use assets |
|
48,604 |
|
|
31,058 |
Other non-current assets |
|
108,840 |
|
|
108,755 |
Total assets |
$ |
1,124,108 |
|
$ |
1,223,110 |
|
|
|
|
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Liabilities and stockholders’ equity |
|
|
|
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Liabilities |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
19,163 |
|
$ |
34,691 |
Accrued expenses and other current liabilities |
|
64,271 |
|
|
93,187 |
Operating lease liabilities, current |
|
6,661 |
|
|
5,730 |
Deferred revenue |
|
370,229 |
|
|
374,552 |
Total current liabilities |
|
460,324 |
|
|
508,160 |
Deferred revenue, non-current |
|
710 |
|
|
506 |
Deferred tax liability, non-current |
|
1,474 |
|
|
1,474 |
Operating lease liabilities, non-current |
|
44,932 |
|
|
27,562 |
Other liabilities, non-current |
|
5,737 |
|
|
5,704 |
Total liabilities |
|
513,177 |
|
|
543,406 |
Commitments and contingencies |
|
|
|
||
Stockholders’ equity |
|
|
|
||
Class A common stock |
|
4 |
|
|
4 |
Class B common stock |
|
4 |
|
|
4 |
|
|
(23,831) |
|
|
(23,831) |
Additional paid-in capital |
|
1,205,948 |
|
|
1,182,150 |
Accumulated other comprehensive loss |
|
(5,224) |
|
|
(3,836) |
Accumulated deficit |
|
(565,970) |
|
|
(474,787) |
Total stockholders’ equity |
|
610,931 |
|
|
679,704 |
Total liabilities and stockholders’ equity |
$ |
1,124,108 |
|
$ |
1,223,110 |
|
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Condensed Consolidated Statements of Operations |
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(in thousands, except per share data) |
|||||
(unaudited) |
|||||
|
|
|
|
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Three Months Ended |
||||
|
2024 |
|
2023 |
||
Revenue: |
|
|
|
||
Subscription |
$ |
177,363 |
|
$ |
157,665 |
Professional services |
|
18,595 |
|
|
15,698 |
Total revenue |
|
195,958 |
|
|
173,363 |
Costs of revenue: |
|
|
|
||
Costs of subscription (1) |
|
32,570 |
|
|
27,476 |
Costs of professional services (1) |
|
18,555 |
|
|
14,461 |
Total costs of revenue |
|
51,125 |
|
|
41,937 |
Gross profit |
|
144,833 |
|
|
131,426 |
Operating expense: |
|
|
|
||
Research and development (1) |
|
22,539 |
|
|
20,761 |
Sales and marketing (1) |
|
87,484 |
|
|
89,202 |
General and administrative (1) |
|
29,101 |
|
|
24,656 |
Total operating expense |
|
139,124 |
|
|
134,619 |
Operating income (loss) |
|
5,709 |
|
|
(3,193) |
Other income, net |
|
7,500 |
|
|
4,759 |
Income before provision (benefit) for income taxes |
|
13,209 |
|
|
1,566 |
Provision (benefit) for income taxes |
|
2,575 |
|
|
(1,242) |
Net income |
$ |
10,634 |
|
$ |
2,808 |
Net income per share, basic |
$ |
0.04 |
|
$ |
0.01 |
Weighted average shares used in computing net income per share, basic |
|
271,664 |
|
|
265,584 |
Net income per share, diluted |
$ |
0.04 |
|
$ |
0.01 |
Weighted average shares used in computing net income per share, diluted |
|
284,032 |
|
|
281,344 |
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:
|
Three Months Ended |
||||
(in thousands) |
2024 |
|
2023 |
||
Costs of subscription |
$ |
283 |
|
$ |
300 |
Costs of professional services |
|
317 |
|
|
403 |
Research and development |
|
2,574 |
|
|
3,067 |
Sales and marketing |
|
5,604 |
|
|
5,955 |
General and administrative |
|
5,077 |
|
|
3,585 |
Stock-based compensation expense, net of amounts capitalized |
$ |
13,855 |
|
$ |
13,310 |
|
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Condensed Consolidated Statements of Cash Flows |
|||||
(in thousands) |
|||||
(unaudited) |
|||||
|
|
|
|
||
|
Three Months Ended |
||||
|
2024 |
|
2023 |
||
Cash flow from operating activities: |
|
|
|
||
Net income |
$ |
10,634 |
|
$ |
2,808 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization expense |
|
4,508 |
|
|
3,519 |
Bad debt expense |
|
1,038 |
|
|
159 |
Stock-based compensation, net of amounts capitalized |
|
13,855 |
|
|
13,310 |
Non-cash lease expense |
|
1,949 |
|
|
907 |
Deferred income taxes |
|
(339) |
|
|
(3,323) |
Net amortization/accretion on marketable securities |
|
(4,452) |
|
|
(3,592) |
Other non-cash items, net |
|
79 |
|
|
— |
Changes in operating assets and liabilities: |
|
|
|
||
Accounts receivable |
|
78,646 |
|
|
28,138 |
Prepaid expenses and other current assets |
|
(15,824) |
|
|
8,379 |
Other non-current assets |
|
1,011 |
|
|
(171) |
Accounts payable |
|
(15,103) |
|
|
(8,199) |
Operating lease liabilities |
|
(1,557) |
|
|
(884) |
Accrued expenses and other current liabilities |
|
(29,125) |
|
|
(20,149) |
Deferred revenue |
|
(3,665) |
|
|
(2,729) |
Other liabilities |
|
57 |
|
|
387 |
Net cash provided by operating activities |
|
41,712 |
|
|
18,560 |
Cash flow from Investing activities: |
|
|
|
||
Purchases of marketable securities |
|
(134,172) |
|
|
(102,468) |
Proceeds from sales and maturities of marketable securities |
|
153,097 |
|
|
78,199 |
Purchases of property and equipment |
|
(2,545) |
|
|
(1,625) |
Capitalized internal-use software |
|
(2,977) |
|
|
(2,683) |
Net cash provided by (used in) investing activities |
|
13,403 |
|
|
(28,577) |
Cash flow from financing activities: |
|
|
|
||
Proceeds from issuance of common stock upon exercise of stock options |
|
9,642 |
|
|
12,692 |
Payments for repurchase of Class A common shares |
|
(99,984) |
|
|
— |
Net cash (used in) provided by financing activities |
|
(90,342) |
|
|
12,692 |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash |
|
(1,231) |
|
|
(196) |
Net change in cash, cash equivalents and restricted cash |
|
(36,458) |
|
|
2,479 |
Cash, cash equivalents and restricted cash at beginning of period |
|
172,429 |
|
|
188,387 |
Cash, cash equivalents and restricted cash at end of period |
$ |
135,971 |
|
$ |
190,866 |
|
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Reconciliation of Non-GAAP Measures |
|||||
(in thousands) |
|||||
(unaudited) |
|||||
|
|
|
|
||
|
Three Months Ended |
||||
|
2024 |
|
2023 |
||
Non-GAAP gross profit and non-GAAP gross margin: |
|
|
|
||
|
$ |
144,833 |
|
$ |
131,426 |
Stock-based compensation expense and related charges (1) |
|
607 |
|
|
712 |
Non-GAAP gross profit |
$ |
145,440 |
|
$ |
132,138 |
Gross margin |
|
74 % |
|
|
76 % |
Non-GAAP gross margin |
|
74 % |
|
|
76 % |
|
|
|
|
||
Non-GAAP operating income: |
|
|
|
||
|
$ |
5,709 |
|
$ |
(3,193) |
Stock-based compensation expense and related charges (2) |
|
14,624 |
|
|
14,115 |
Amortization of acquired intangible assets |
|
50 |
|
|
50 |
Non-GAAP operating income |
$ |
20,383 |
|
$ |
10,972 |
Operating margin |
|
3 % |
|
|
(2) % |
Non-GAAP operating margin |
|
10 % |
|
|
6 % |
|
|
|
|
||
Free cash flow: |
|
|
|
||
Net cash provided by operating activities |
$ |
41,712 |
|
$ |
18,560 |
Purchase of property and equipment |
|
(2,545) |
|
|
(1,625) |
Capitalized internal-use software |
|
(2,977) |
|
|
(2,683) |
Free cash flow |
$ |
36,190 |
|
$ |
14,252 |
(1) Employer payroll tax related to stock-based compensation for the periods ended
(2) Includes
Three Months Ended |
|||||||||||||||||
|
2024 |
|
2023 |
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|
(in
|
|
Per Share-
|
|
Per Share-
|
|
(in
|
|
Per Share-
|
|
Per Share-
|
||||||
Non-GAAP net income reconciliation to net income |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
$ |
10,634 |
|
$ |
0.04 |
|
$ |
0.04 |
|
$ |
2,808 |
|
$ |
0.01 |
|
$ |
0.01 |
Add: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Stock-based compensation expense and related charges |
|
14,624 |
|
|
0.05 |
|
|
0.05 |
|
|
14,115 |
|
|
0.05 |
|
|
0.05 |
Amortization of acquired intangible assets |
|
50 |
|
|
0.00 |
|
|
0.00 |
|
|
50 |
|
|
0.00 |
|
|
0.00 |
Total additions, net |
|
14,674 |
|
|
0.05 |
|
|
0.05 |
|
|
14,165 |
|
|
0.05 |
|
|
0.05 |
Non-GAAP net income |
$ |
25,308 |
|
$ |
0.09 |
|
$ |
0.09 |
|
$ |
16,973 |
|
$ |
0.06 |
|
$ |
0.06 |
Weighted-average shares outstanding used in computing net income per share, basic |
|
271,664 |
|
|
|
|
|
|
265,584 |
|
|
|
|
||||
Weighted average shares outstanding used in computing net income per share, diluted |
|
284,032 |
|
|
|
|
|
|
281,344 |
|
|
|
|
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