Customer experience software provider Sprinklr (NYSE:CXM) will be reporting results tomorrow after market hours. Here's what to look for.
Last quarter Sprinklr reported revenues of $173.4 million, up 19.6% year on year, beating analyst revenue expectations by 2.58%. It was a solid quarter for the company, with accelerating growth in large customers and a decent beat of analysts' revenue estimates. The company added seven enterprise customers paying more than $1m annually to a total of 115.
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This quarter analysts are expecting Sprinklr's revenue to grow 15.2% year on year to $173.5 million, slowing down from the 26.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
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 3.77%.
Looking at Sprinklr's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 25.1% year on year, beating analyst estimates by 6.08%, and Shopify reported revenues up 30.8% year on year, exceeding estimates by 4.27%. Zeta traded up 17.2% on the results, Shopify was down 1.67%.
Investors in the sales and marketing software segment have had steady hands going into the earnings, with the stocks down on average 0.78% over the last month. Sprinklr is up 12% during the same time, and is heading into the earnings with analysts' price target of $17.2, compared to share price of $15.4.
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The author has no position in any of the stocks mentioned.