Sprinklr Announces Second Quarter Fiscal 2022 Results
Q2 Total Revenue of $118.7 million, up 27% year-over-year
Q2 Subscription Revenue of $103.3 million, up 25% year-over-year
74 Customers Paying $1 Million or More in Subscription Revenue, up 23% year-over-year
New York, NY – September 9, 2021 – 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, 2021.
“Our third consecutive quarter of accelerating revenue growth, and the continued trust that the world's largest and most iconic global enterprises place in Sprinklr, is a testament to the growing need for a Unified-CXM platform. Brands choose our leading AI and our unique ability to connect all customer-facing functions to engage customers on the channels they prefer for a truly unified customer experience,” said Ragy Thomas, Sprinklr Founder and CEO.
Second Quarter Fiscal 2022 Financial Highlights
Revenue: Total revenue for the second quarter was $118.7 million, up from $93.5 million one year ago, an increase of 27% year-over-year. Subscription revenue for the second quarter was $103.3 million, up from $82.8 million one year ago, an increase of 25% year-over-year.
Operating (Loss) Income and Margin: Second quarter operating loss was $29.3 million, compared to operating income of $4.9 million one year ago. Non-GAAP operating loss was $11.4 million, compared to non-GAAP operating income of $10.9 million one year ago. For the second quarter, GAAP operating margin was (25)% and non-GAAP operating margin was (10)%.
Net (Loss) Income Per Share: Second quarter net loss per share was $0.20, compared to net income per share of $0.02 in the second quarter of fiscal year 2021. Non-GAAP net loss per share for the second quarter was $0.09, compared to non-GAAP net income per share of $0.05 in the second quarter of fiscal year 2021.
Cash, Cash Equivalents and Marketable Securities: Completed its initial public offering and began trading on the NYSE ("CXM") on June 23, 2021. Net proceeds from the IPO were approximately $276.0 million, after deducting underwriters’ discounts and commissions and offering expenses. Total cash, cash equivalents and marketable securities as of July 31, 2021 was $548.8 million.
Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2021:
Subscription revenue between $104 million and $106 million.
Total revenue between $117 million and $119 million.
Non-GAAP operating loss between $24 million and $26 million.
Non-GAAP net loss per share between $0.09 and $0.10, assuming 260 million weighted average shares outstanding.
Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2022:
Subscription revenue between $413 million and $418 million.
Total revenue between $470 million and $475 million.
Non-GAAP operating loss between $62 million and $66 million.
Non-GAAP net loss per share between $0.36 and $0.38, assuming 197 million weighted average shares outstanding.
Conference Call Information: Sprinklr will host a conference call today, September 9, 2021, to discuss second quarter fiscal 2022 financial results, as well as the third quarter and full year fiscal 2022 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 13721772. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.
About Sprinklr Inc.
Sprinklr is a leading enterprise software company for all customer-facing functions. With advanced AI, Sprinklr's unified customer experience management (Unified-CXM) platform helps companies deliver human experiences to every customer, every time, across any modern channel. Headquartered in New York City with employees around the world, Sprinklr works with more than 1,000 of the world’s most valuable enterprises — global brands like Microsoft, P&G, Samsung and more than 50% of the Fortune 100.
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 third quarter and full year fiscal 2022, Sprinklr’s growth strategy and its market position. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our rapid growth may be not indicative of our future growth; our revenue growth rate has fluctuated in prior periods; our ability to achieve or maintain profitability; we derive the substantial majority of our revenue from subscriptions to our Unified-CXM platform; our ability to manage our growth and organizational change; the market for Unified-CXM solutions is new and rapidly evolving; our ability to attract new customers in a manner that is cost-effective and assures customer success; our ability to attract and retain customers to use our products; our ability to drive customer subscription renewals and expand our sales to existing customers; our ability to effectively develop platform enhancements, introduce new products or keep pace with technological developments; the market in which we participate is new and rapidly evolving and our ability to compete effectively; our business and growth depend in part on the success of our strategic relationships with third parties; our ability to develop and maintain successful relationships with partners who provide access to data which enhances our Unified-CXM platform’s artificial intelligence capabilities; the majority of our customer base consists of large enterprises, and we currently generate a significant portion of our revenue from a relatively small number of enterprises; our investments in research and development; our ability to expand our sales and marketing capabilities; our sales cycle with enterprise and international clients can be long and unpredictable; our business and results of operations may be materially adversely affected by the recent COVID-19 outbreak or other similar outbreaks; certain of our results of operations and financial metrics may be difficult to predict; our ability to maintain data privacy and data security; we rely on third-party data centers and cloud computing providers; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to maintain, protect, and enhance our intellectual property rights; our ability to successfully defend litigation brought against us; and our ability to comply with modified or new laws and regulations applying to our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are and/or will be included under the caption “Risk Factors” in our prospectus filed with the SEC pursuant to Rule 424(b), on June 24, 2021. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended July 31, 2021 and other filings and reports that we may file from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprinklr at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprinklr assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, basic and diluted, and free cash flow. We define these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense-related charges and amortization of acquired intangible assets. We believe 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 the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the Company'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.
With respect to our expectations under "Financial Outlook" above, reconciliation of non-GAAP operating loss and non-GAAP net loss per share guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Sprinklr's results computed in accordance with GAAP.
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