Sprinklr Inc (CXM) Earnings Exceed Analyst Revenue Projections with Substantial Year-Over-Year ...
Revenue: Q4 total revenue reached $194.2 million, a 17% increase year-over-year, surpassing estimates of $193.1835 million.
Subscription Revenue: Q4 subscription revenue climbed to $177.0 million, up 19% from the previous year.
Net Income: Q4 net income per share reported at $0.08, aligning with estimates of $0.0838 per share.
Operating Activities: Net cash provided by operating activities in Q4 stood at $17.3 million with a free cash flow of $12.3 million.
Customer Growth: The number of $1 million customers increased by 17% year-over-year to 126.
Sprinklr Inc (NYSE:CXM) released its 8-K filing on March 27, 2024, revealing a robust performance for the fourth quarter and full fiscal year of 2024. The unified customer experience management platform, which serves enterprises by unifying customer-facing teams on an AI-powered platform, has shown significant growth in revenue and subscription rates, reflecting the company's successful expansion and the increasing demand for its services.
Financial Performance and Strategic Achievements
Sprinklr Inc (NYSE:CXM) reported a total revenue of $194.2 million for Q4, marking a 17% increase from the previous year and slightly above analyst expectations. This growth was driven by a 19% increase in subscription revenue, which is a testament to the company's strong customer retention and acquisition strategies. The company's operating income turned positive, showcasing an impressive $18.5 million compared to the operating loss of $1.8 million in the same period last year. Moreover, the non-GAAP operating income more than doubled to $32.4 million from $14.3 million.
The company's net income per share for Q4 was reported at $0.08, consistent with analyst projections. This marks a significant improvement from the net loss per share of $0.00 in the previous fiscal year. The full-year fiscal 2024 also reflected a positive trend, with a net income per share of $0.19, a reversal from the net loss per share of $0.21 in fiscal year 2023.
Furthermore, Sprinklr's balance sheet remains robust, with total cash, cash equivalents, and marketable securities of $662.6 million as of January 31, 2024. The company's liquidity position is strong, providing ample room for continued investment in growth and innovation.
Operational Highlights and Future Outlook
Operational efficiency was evident in the company's free cash flow, which stood at $12.3 million for the quarter, indicating healthy cash generation capabilities. The increase in the number of high-value customers, with 126 customers contributing over $1 million each, underscores the company's ability to scale and serve large enterprises effectively.
Looking ahead, Sprinklr provided an optimistic outlook for the first fiscal quarter ending April 30, 2024, with subscription revenue projected to be between $177.5 million and $178.5 million, and total revenue expected to be between $194 million and $195 million. The company also anticipates non-GAAP operating income to be between $19.5 million and $20.5 million, and non-GAAP net income per share of approximately $0.07.
For the full fiscal year ending January 31, 2025, Sprinklr forecasts subscription revenue between $740.5 million and $741.5 million, total revenue between $804.5 million and $805.5 million, non-GAAP operating income between $104 million and $105 million, and non-GAAP net income per share between $0.38 and $0.39.
These forward-looking statements reflect the company's confidence in its strategic direction and its commitment to maintaining a trajectory of growth. Sprinklr is poised to continue its role as a key player in the enterprise software market, focusing on delivering exceptional customer experiences.
For a detailed analysis of Sprinklr Inc (NYSE:CXM)'s financials and strategic direction, value investors and potential GuruFocus.com members are encouraged to visit the full earnings release and explore the wealth of financial data available.
Explore the complete 8-K earnings release (here) from Sprinklr Inc for further details.
This article first appeared on GuruFocus.
