Customer experience software provider Sprinklr (NYSE:CXM) will be announcing earnings results tomorrow after market hours. Here's what you need to know.
Last quarter Sprinklr reported revenues of $157.3 million, up 23.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but underwhelming revenue guidance for the next quarter. The company added 9 enterprise customers paying more than $1m annually to a total of 107.
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 20% year on year to $162.8 million, slowing down from the 30.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 4.34%.
Looking at Sprinklr's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Momentive delivered top-line growth of 4.3% year on year, beating analyst estimates by 0.9% and Wix reported revenues up 8.13% year on year, exceeding estimates by 0.9%. Momentive traded up 3.44% on the results, Wix was flat on the results. Read our full analysis of Momentive's results here and Wix's results here.
The technology sell-off has been putting pressure on stocks since November 2021 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 2.17% over the last month. Sprinklr is down 3.82% during the same time, and is heading into the earnings with analyst price target of $11.3, compared to share price of $10.58.
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The author has no position in any of the stocks mentioned.