Sprinklr Announces Third Quarter Fiscal 2022 Results

  • Q3 Total Revenue of $127.1 million, up 32% year-over-year
  • Q3 Subscription Revenue up 29% year-over-year
  • RPO up 29% year-over-year1
  • 80 $1 million customers, up 29% year-over-year2

NEW YORK–(BUSINESS WIRE)–$CXM #CX–Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its third quarter ended October 31, 2021.

“This is our fourth consecutive quarter of accelerating revenue growth and we couldn’t be more pleased with our team’s relentless focus on our customers. The most iconic enterprise brands continue to validate that the rise of Unified-CXM is inevitable. And only a platform designed with industry leading AI can solve their most complex problems. Sprinklr is well-positioned to become the strategic partner brands need to unify customer experiences across channels, teams, markets and products for a truly unified experience,” said Ragy Thomas, Sprinklr Founder and CEO.

Third Quarter Fiscal 2022 Financial Highlights

  • Revenue: Total revenue for the third quarter was $127.1 million, up from $96.3 million one year ago, an increase of 32% year-over-year. Subscription revenue for the third quarter was $109.9 million, up from $85.0 million one year ago, an increase of 29% year-over-year.
  • Operating (Loss) Income and Margin: Third quarter operating loss was $26.3 million, compared to operating loss of $15.3 million one year ago. Non-GAAP operating loss was $13.5 million, compared to non-GAAP operating income of $8.1 million one year ago. For the third quarter, GAAP operating margin was (21)% and non-GAAP operating margin was (11)%.
  • Net (Loss) Income Per Share: Third quarter net loss per share was $0.11, compared to net loss per share of $0.21 in the third quarter of fiscal year 2021. Non-GAAP net loss per share for the third quarter was $0.06, compared to non-GAAP net income per share of $0.02 in the third quarter of fiscal year 2021.
  • Cash, Cash Equivalents and Marketable Securities: Total cash, cash equivalents and marketable securities as of October 31, 2021 was $541.5 million.

Financial Outlook

Sprinklr is providing the following guidance for the fourth fiscal quarter ending January 31, 2022:

  • Subscription revenue between $113 million and $115 million.
  • Total revenue between $129 million and $131 million.
  • Non-GAAP operating loss between $21 million and $23 million.
  • Non-GAAP net loss per share between $0.08 and $0.09, 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 $423 million and $425 million.
  • Total revenue between $486 million and $488 million.
  • Non-GAAP operating loss between $48 million and $50 million.
  • Non-GAAP net loss per share between $0.30 and $0.31, assuming 195 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) income and non-GAAP operating margin, non-GAAP net (loss) income, 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, as applicable, stock-based compensation expense-related charges and amortization of acquired intangible assets. 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, December 9, 2021, to discuss third quarter fiscal 2022 financial results, as well as the fourth 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 13724727. 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.

Forward-Looking Statements

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 fourth quarter and full year fiscal 2022, our growth strategy and the ability of our platform to deliver a unified experience to address our customers’ demands. 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 not be 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 that 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 ongoing COVID-19 pandemic 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; and our ability to successfully defend litigation brought against us. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be discussed in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2021, filed with the SEC on September 10, 2021, under the caption “Risk Factors”, and in other filings that we make from time to time with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended October 31, 2021. 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.

__________________________

1 RPO, or remaining performance obligations, represents contracted revenues that had not yet been recognized, and include deferred revenues and amounts that will be invoiced and recognized in future periods.

2 $1 million customers represents our customers with greater than or equal to $1 million in subscription revenue on a trailing 12-month basis.

Sprinklr, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)

 

 

 

 

October 31,
2021

January 31,
2021

Assets

 

 

Current assets

 

 

Cash and cash equivalents

$

522,386

 

$

68,037

 

Marketable securities

19,111

 

212,652

 

Accounts receivable, net of allowance for doubtful accounts of $3.0 million and

$3.2 million, respectively

103,579

 

116,278

 

Prepaid expenses and other current assets

96,807

 

95,819

 

Total current assets

741,883

 

492,786

 

Property and equipment, net

13,441

 

9,011

 

Goodwill and other intangible assets

50,778

 

47,427

 

Other non-current assets

38,608

 

36,669

 

Total assets

$

844,710

 

$

585,893

 

 

 

 

Liabilities and stockholders’ equity

 

 

Liabilities

 

 

Current liabilities

 

 

Accounts payable

$

11,055

 

$

16,955

 

Accrued expenses and other current liabilities

78,234

 

63,170

 

Deferred revenue

221,918

 

221,439

 

Total current liabilities

311,207

 

301,564

 

Senior subordinated secured convertible notes

 

78,848

 

Deferred revenue less current portion

11,854

 

19,873

 

Deferred tax liability, long-term

869

 

869

 

Other liabilities, long-term

2,366

 

2,006

 

Total liabilities

326,296

 

403,160

 

Stockholders’ equity

 

 

Convertible preferred stock

 

424,992

 

Class A common stock

2

 

 

Class B common Stock

6

 

 

Common stock

 

4

 

Treasury stock

(23,831)

 

(23,831)

 

Additional paid-in capital

960,697

 

122,061

 

Accumulated other comprehensive (loss) income

(5)

 

787

 

Accumulated deficit

(418,455)

 

(341,280)

 

Total stockholders’ equity

518,414

 

182,733

 

Total liabilities and stockholders’ equity

$

844,710

 

$

585,893

 

Sprinklr, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

2020

 

2021

2020

Revenue:

 

 

 

 

Subscription

$

109,941

 

$

85,040

 

 

$

310,020

 

$

249,507

 

Professional services

17,115

11,292

 

46,708

33,311

Total revenue:

127,056

 

96,332

 

 

356,728

 

282,818

 

Costs of revenue:

 

 

 

 

 

Costs of subscription (1)

22,835

19,392

 

66,228

55,645

Costs of professional services (1)

15,865

10,831

 

41,520

33,334

Total costs of revenue

38,700

 

30,223

 

 

107,748

 

88,979

 

Gross profit

88,356

 

66,109

 

 

248,980

 

193,839

 

Operating expenses:

 

 

 

 

 

Research and development (1)

16,621

10,394

 

44,836

26,874

Sales and marketing (1)(2)

76,191

45,228

 

207,079

137,060

General and administrative (1)

21,833

25,768

 

63,364

48,234

Total operating expenses

114,645

 

81,390

 

 

315,279

 

212,168

 

Operating loss

(26,289)

 

(15,281)

 

 

(66,299)

 

(18,329)

 

Other expense, net

(1,119)

(2,587)

 

(4,744)

(5,949)

Loss before provision for income taxes

(27,408)

 

(17,868)

 

 

(71,043)

 

(24,278)

 

Provision for income taxes

1,823

1,100

 

6,132

2,888

Net loss

$

(29,231)

 

$

(18,968)

 

 

$

(77,175)

 

$

(27,166)

 

 

 

 

 

 

 

Net loss per share attributable to Class A and Class

B common stockholders, basic and diluted

$

(0.11)

 

$

(0.21)

 

 

$

(0.44)

 

$

(0.31)

 

Weighted average shares used in computing net

loss per share attributable to Class A and Class B

common stockholders, basic and diluted

255,195

91,672

 

174,497

88,428

(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

 

(in thousands)

Costs of subscription

$

589

 

 

$

338

 

 

$

1,411

 

 

$

856

 

Costs of professional services

889

 

422

 

1,911

 

876

Research and development

2,186

 

1,823

 

4,915

 

2,910

Sales and marketing

4,997

 

4,889

 

13,963

 

8,994

General and administrative

3,760

 

15,834

 

15,753

 

19,077

Stock-based compensation expense, net of amounts capitalized

$

12,421

 

 

$

23,306

 

 

$

37,953

 

 

$

32,713

 

(2) Includes amortization of acquired intangible assets as follows:

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

 

(in thousands)

Sales and marketing

$

116

$

82

$

280

$

543

Total amortization of acquired intangible assets

$

116

$

82

$

280

$

543

Sprinklr, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

Nine months ended October 31,

 

2021

2020

Cash flow from operating activities:

 

 

Net loss

$

(77,175)

 

$

(27,166)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

Depreciation and amortization expense

5,638

 

4,248

 

Bad debt expense

47

 

427

 

Stock-based compensation expense

37,953

 

32,713

 

Non-cash interest paid in kind and discount amortization

3,266

 

3,494

 

Deferred income taxes

1

 

130

 

Other noncash items, net

(1,187)

 

(149)

 

Changes in operating assets and liabilities:

 

 

Accounts receivable

12,741

 

22,819

 

Prepaid expenses and other current assets

(1,104)

 

(1,837)

 

Other noncurrent assets

(1,817)

 

5,182

 

Accounts payable

(5,774)

 

586

 

Accrued expenses and other current liabilities

16,413

 

(335)

 

Deferred revenue

(7,132)

 

(24,235)

 

Other liabilities

197

 

(103)

 

Net cash (used in) provided by operating activities

(17,933)

 

15,774

 

Cash flow from investing activities:

 

 

Purchases of marketable securities

(61,758)

 

(170,035)

 

Sales of marketable securities

56,652

 

 

Maturities of marketable securities

197,555

 

 

Purchases of property and equipment

(5,197)

 

(2,078)

 

Capitalized internal-use software

(4,150)

 

(2,504)

 

Acquisitions, net of cash acquired

(3,625)

 

 

Net cash provided by (used in) investing activities

179,477

 

(174,617)

 

Cash flow from financing activities:

 

 

Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts,

commissions and other offering costs

275,974

 

 

Proceeds from issuance of convertible preferred stock, net of issuance costs

 

191,752

 

Proceeds from Senior subordinated secured convertible notes

 

73,425

 

Proceeds from issuance of stock warrants

 

7,639

 

Proceeds from short-term borrowings

 

49,973

 

Repayments of short term borrowings

 

(49,973)

 

Payments of debt and equity issuance costs

 

(160)

 

Proceeds from issuance of common stock upon exercise of stock options

17,891

 

13,375

 

Net cash provided by financing activities

293,865

 

286,031

 

Effect of exchange rate fluctuations on cash and cash equivalents

(1,060)

 

(251)

 

Net change in cash and cash equivalents

454,349

 

126,937

 

Cash and cash equivalents at beginning of period

68,037

 

10,470

 

Cash and cash equivalents at end of period

$

522,386

 

$

137,407

 

Sprinklr, Inc.

Reconciliation of Non-GAAP Measures

(in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2021

 

2020

 

2021

 

2020

Non-GAAP gross profit:

 

 

 

 

 

 

 

GAAP gross profit

$

88,356

 

 

$

66,109

 

 

$

248,980

 

 

$

193,839

 

Stock-based compensation expense-related charges (1)

1,478

 

 

760

 

 

3,434

 

 

1,732

 

Non-GAAP gross profit

$

89,834

 

 

$

66,869

 

 

$

252,414

 

 

$

195,571

 

Gross margin

70

%

 

69

%

 

70

%

 

69

%

Non-GAAP gross margin

71

%

 

69

%

 

71

%

 

69

%

 

 

 

 

 

 

 

 

Non-GAAP operating (loss) income:

 

 

 

 

 

 

 

GAAP operating loss

$

(26,289)

 

 

$

(15,281)

 

 

$

(66,299)

 

 

$

(18,329)

 

Stock-based compensation expense-related charges (2)

12,647

 

 

23,306

 

 

39,371

 

 

32,713

 

Amortization of acquired intangible assets

116

 

 

82

 

 

280

 

 

543

 

Non-GAAP operating (loss) income

$

(13,526)

 

 

$

8,107

 

 

$

(26,648)

 

 

$

14,927

 

 

 

 

 

 

 

 

 

Non-GAAP net (loss) income and net (loss) income per share:

 

 

 

 

 

 

 

GAAP net loss:

$

(29,231)

 

 

$

(18,968)

 

 

$

(77,175)

 

 

$

(27,166)

 

Stock-based compensation expense-related charges (2)

12,647

 

 

23,306

 

 

39,371

 

 

32,713

 

Amortization of acquired intangible assets

116

 

 

82

 

 

280

 

 

543

 

Non-GAAP net (loss) income

$

(16,468)

 

 

$

4,420

 

 

$

(37,524)

 

 

$

6,090

 

Less: amounts allocated to participating securities

 

 

(2,526)

 

 

 

 

(3,535)

 

Non-GAAP net (loss) income attributable to Class A and

Class B common stockholders

$

(16,468)

 

 

$

1,894

 

 

$

(37,524)

 

 

$

2,555

 

Weighted-average shares outstanding used in computing net

(loss) income per share attributable to Class A and Class B

common stockholders – basic

255,195

 

 

91,672

 

 

174,497

 

 

88,428

 

Non-GAAP net (loss) income per common share attributable

to Class A and Class B common stockholders

$

(0.06)

 

 

$

0.02

 

 

$

(0.22)

 

 

$

0.03

 

 

 

 

 

 

 

 

 

Free cash flow:

 

 

 

 

 

 

 

Net cash (used in) provided by operating activities

$

(1,074)

 

 

$

(7,675)

 

 

$

(17,933)

 

 

$

15,774

 

Purchase of property and equipment

(1,334)

 

 

(492)

 

 

(5,197)

 

 

(2,078)

 

Capitalized internal-use software

(1,669)

 

 

(958)

 

 

(4,150)

 

 

(2,504)

 

Free cash flow

$

(4,077)

 

 

$

(9,125)

 

 

$

(27,280)

 

 

$

11,192

 

(1) Includes $0.1 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2021.

(2) Includes $0.2 million and $1.4 million of employer payroll tax related to stock-based compensation expense for the three and nine months ended October 31, 2021, respectively.

Contacts

Investor Relations:
ir@sprinklr.com

Media & Press:

Austin DeArman

PR@sprinklr.com