Sprinklr, Inc. Q1 2025 Financial Report

NYSE: CXM | Reporting Date: 2024-06-06

Company Overview

Sprinklr, Inc. (NYSE: CXM) is a technology company within the Software - Application industry. This report outlines the financial results for Q1 2025, detailing the company's revenue, expenses, profitability, cash flows, and various financial ratios.

Executive Summary

For the first quarter of the fiscal year 2025, Sprinklr, Inc. reported a revenue of $195.96 million, achieving a net income of $10.63 million and an EPS of $0.04. The company's gross profit margin stood at an impressive 73.91%, driven by a strong operational performance and strategic cost management.

Financial Performance

Revenue and Profitability

Sprinklr, Inc. reported total revenue of $195.96 million. The cost of revenue was $51.13 million, resulting in a gross profit of $144.83 million. Operating expenses, including research and development ($22.54 million), general and administrative expenses ($29.10 million), and selling and marketing expenses ($87.48 million) totaled $139.12 million. This resulted in an operating income of $5.71 million. After accounting for total other income and expenses ($7.50 million) and income tax expenses ($2.58 million), the net income for the quarter was $10.63 million, reflecting a net income ratio of 5.43%.

Cash Flows

Operating cash flow was positive at $41.71 million, highlighting the firm’s efficient cash management practices. The net cash used in investing activities and financing activities amounted to $90.34 million and resulted in a net change in cash of $-36.46 million. Cash at the end of the period was $135.97 million, down from $172.43 million at the start of the period.

Balance Sheet

The company's total assets stood at $1.12 billion with total liabilities amounting to $513.18 million. Noteworthy asset items include $610.08 million in cash and short-term investments, and $187.77 million in net receivables. On the liabilities side, current liabilities were $460.32 million, including $370.23 million in deferred revenue. Stockholders' equity was robust at $610.93 million, displaying the company’s strong financial foundation.

Liquidity and Financial Health

Sprinklr, Inc. maintained a current ratio of 192.00% and a quick ratio of 173.32%, indicating strong liquidity. The debt-equity ratio was low at 8.44%, and the cash flow coverage ratio was 183.39%, highlighting the company's ability to meet its short-term obligations and efficiently manage debt.

Market Performance and Ratios

The company's market capitalization is $2.93 billion. Key financial ratios include a gross profit margin of 75.01%, operating profit margin of 5.66%, and net profit margin of 7.85%. The PE ratio is high at 49.72x, reflecting investor confidence in the company's future growth prospects despite the current challenging economic environment.

Peers in the industry show varying performances across these ratios, with Sprinklr, Inc. outperforming most in terms of net profit margin and return on equity (9.23%). The company’s price to free cash flow ratio stands at 38.52x, demonstrating strong operational efficiency relative to market evaluation.

For a comprehensive analysis, please refer to the full detailed report available here.