Sprinklr (CXM) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/06/05 3:24 am EDT

Customer experience software provider Sprinklr (NYSE:CXM) will be announcing earnings results today afternoon. Here's what you need to know.

Last quarter Sprinklr reported revenues of $165.3 million, up 21.9% year on year, beating analyst revenue expectations by 1.57%. It was a weaker quarter for the company, with underwhelming guidance for the next year and decelerating growth in large customers. The company added one enterprise customer paying more than $1m annually to a total of 108.

Is Sprinklr buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sprinklr's revenue to grow 16.6% year on year to $169 million, slowing down from the 30.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

Sprinklr Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.94%.

Looking at Sprinklr's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Momentive delivered top-line growth of 1.57% year on year, missing analyst estimates by 0.11% and DoubleVerify reported revenues up 26.7% year on year, exceeding estimates by 3.78%. Momentive traded flat on the results, DoubleVerify was up 5.92%. Read our full analysis of Momentive's results here and DoubleVerify's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.8% over the last month. Sprinklr is up 17.1% during the same time, and is heading into the earnings with analyst price target of $15, compared to share price of $13.3.

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The author has no position in any of the stocks mentioned.