NEW YORK – Sprinklr Inc. (NYSE: CXM), a leading unified customer experience management platform, reported first-quarter earnings that beat analysts’ expectations with adjusted earnings per share of $0.09, $0.02 above the consensus estimate of $0.07.
However, the company’s shares plummeted 17% after forecasting second-quarter earnings that fell below market expectations.
The company reported strong first-quarter results, with total revenue reaching $196 million, up 13% year-over-year and slightly above analysts’ estimates of $194.37 million.
Subscription revenue, a key metric of the company’s business model, rose to $177.4 million, up 12% year over year. Sprinklr’s growth was also reflected in its operating income, which turned positive at $5.7 million compared to a loss in the prior year, and its adjusted operating margin improved from 6% to 10%.
Despite these positive numbers, investor sentiment was dampened by the company’s second-quarter guidance. Sprinklr forecast second-quarter 2025 adjusted earnings per share of $0.06 to $0.07, below analyst consensus of $0.09. Additionally, the company expects second-quarter revenue to be between $194 million and $196 million, below expectations of $196.9 million.
The company’s full-year guidance also suggests a cautious stance, with subscription revenue forecast at $714 million to $716 million and total revenue expected to be between $779 million and $781 million. The midpoint of its full-year guidance for adjusted operating income is set at $104. 5 million, with adjusted earnings per share ranging from $0.40 to $0.41.
Sprinklr founder and co-CEO Reggie Thomas commented on the results, saying, “Even though we operate in a more challenging macro environment, we generated strong free cash flow in the first quarter and are driving innovation with new products and artificial intelligence features.” He also expressed confidence in the company’s strategy and leadership, highlighting the appointment of Truck Pham as co-CEO to drive growth and scale.
Sprinklr’s financial condition remains stable, with cash, cash equivalents and marketable securities of $610.1 million as of April 30, 2024. The company also highlighted its strong free cash flow generation and a 20% YoY increase in its US$1 million customer base, demonstrating its financial strength. continued appeal to large corporate clients.
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