Sprinklr (CXM) Reports Q1: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/06/14 4:08 am EDT
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Customer experience software provider Sprinklr (NYSE:CXM) will be reporting earnings today after market hours. Here's what investors should know.

Last quarter Sprinklr reported revenues of $135.6 million, up 30.3% year on year, beating analyst revenue expectations by 4.05%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and a full year guidance beating analysts' expectations. The company added 2 enterprise customers paying more than $1m annually to a total of 82.

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 27% year on year to $140.9 million, improving on the 19.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 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 since going public on average by 6.74%.

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 14.3% year on year, beating analyst estimates by 0.77% and Freshworks reported revenues up 42.2% year on year, exceeding estimates by 5.91%. Momentive traded up 5.17% on the results, and Freshworks was down 0.52%. Read our full analysis of Momentive's results here and Freshworks's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.86% over the last month. Sprinklr is down 12.5% during the same time, and is heading into the earnings with an analyst price target of $16.5, compared to share price of $9.83.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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