- Q2 Total Revenue of $150.6 million, up 27% year-over-year
- Q2 Subscription Revenue up 29% year-over-year
- RPO and cRPO up 33% and 29% year-over-year, respectively
- Continued improvement on operating margin with full year FY 23 operating margin much better than prior guidance
- 98 $1 million customers, up 32% year-over-year
Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second quarter ended July 31, 2022.
“We are very pleased with Sprinklr’s performance in the second quarter, as we beat expectations across all key metrics. In today’s fast changing world, brands are looking for ways to stay close to their customers and we couldn’t be more pleased that our platform is helping them deliver better customer experiences by unifying customer-facing functions and teams,” said Ragy Thomas, Sprinklr Founder and CEO.
Thomas continued, “Our focus on operational excellence and increasing efficiency is having a great impact on our business. As a result, we are significantly improving our business outlook for fiscal 2023. We are increasingly confident in our ability to deliver an attractive combination of strong revenue growth and a clear path to non-GAAP profitability.”
Second Quarter Fiscal 2023 Financial Highlights
- Revenue: Total revenue for the second quarter was $150.6 million, up from $118.7 million one year ago, an increase of 27% year-over-year. Subscription revenue for the second quarter was $133.1 million, up from $103.3 million one year ago, an increase of 29% year-over-year.
- Operating Loss and Margin: Second quarter operating loss was $21.7 million, compared to operating loss of $28.4 million one year ago. Non-GAAP operating loss was $4.9 million, compared to non-GAAP operating loss of $10.5 million one year ago. For the second quarter, GAAP operating margin was (14%) and non-GAAP operating margin was (3%).
- Net Loss Per Share: Second quarter net loss per share was $0.09, compared to net loss per share of $0.19 in the second quarter of fiscal year 2022. Non-GAAP net loss per share for the second quarter was $0.03, compared to non-GAAP net loss per share of $0.09 in the second quarter of fiscal year 2022.
- Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of July 31, 2022 was $540.9 million.
CRO Transition
Sprinklr also is announcing that Luca Lazzaron, Chief Revenue Officer, has decided to step down from his position, effective October 1, 2022. He will be succeeded by Paul Ohls, who is currently EVP Worldwide Sales and Success, and has been with Sprinklr for four years. To assist in this transition, Mr. Lazzaron will serve as an advisor to the company until December 31, 2022.
“Luca has been an incredible partner, leader, and team builder for Sprinklr. I want to thank Luca personally for all his contributions. We wish him the very best,” said Ragy Thomas, Sprinklr’s Founder and CEO. “We’re excited for Paul’s promotion to Chief Revenue Officer; his experience in enterprise software sales and familiarity with Sprinklr and our customer base are tremendous assets moving forward,” continued Thomas.
Financial Outlook
Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2022:
- Subscription revenue between $137 million and $139 million.
- Total revenue between $155 million and $157 million.
- Non-GAAP operating (loss) income between $(1 million) and $1 million.
- Non-GAAP net loss per share between $0.01 and $0.02, assuming 263 million weighted average shares outstanding.
Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2023:
- Subscription revenue between $543 million and $547 million.
- Total revenue between $616 million and $620 million.
- Non-GAAP operating loss between $8 million and $12 million.
- Non-GAAP net loss per share between $0.06 and $0.08, assuming 261 million weighted average shares outstanding.
Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, basic and diluted, free cash flow, and adjusted free cash flow. We define these non-GAAP financial measures as the respective GAAP measures, excluding, as applicable, stock-based compensation expense-related charges, amortization of acquired intangible assets, purchase of property and equipment, capitalized internal-use software, and litigation settlement payments. We believe that it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in Sprinklr’s financial statements. In addition, they are subject to inherent limitations, as they reflect the exercise of judgment by Sprinklr’s management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.
Sprinklr has not reconciled its expectations as to non-GAAP operating loss, or as to non-GAAP net loss per share, to their most directly comparable GAAP measures as a result of the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Sprinklr’s results computed in accordance with GAAP.
Conference Call Information
Sprinklr will host a conference call today, September 8, 2022, to discuss second quarter fiscal 2023 financial results, as well as the third quarter and full year fiscal 2023 outlook, at 5:00 p.m. Eastern Time, 2:00 p.m. Pacific Time. Investors are invited to join the webcast by visiting: https://investors.sprinklr.com/. To access the call by phone, dial 877-459-3955 (domestic) or 201-689-8588 (international). The conference ID number is 13732410. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.
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