What To Expect From Sprinklr’s (CXM) Q3 Earnings

Petr Huřťák /
2022/12/05 4:46 am EST

Customer experience software provider Sprinklr (NYSE:CXM) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Sprinklr reported revenues of $150.6 million, up 26.9% year on year, beating analyst revenue expectations by 2.15%. It was a mixed quarter for the company, with solid revenue growth but underwhelming revenue guidance for the next quarter. The company added 8 enterprise customers paying more than $1m annually to a total of 98.

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This quarter analysts are expecting Sprinklr's revenue to grow 22.8% year on year to $156 million, slowing down from the 31.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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 5.05%.

Looking at Sprinklr's peers in the customer experience software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. UserTesting delivered top-line growth of 27.8% year on year, beating analyst estimates by 2.91% and Momentive reported revenues up 5.76% year on year, exceeding estimates by 0.29%. UserTesting was up 92.7% on acquisition announcement at $7.5 per share., Momentive was up 2.54%. Read our full analysis of UserTesting's results here and Momentive's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.1% over the last month. Sprinklr is up 7.11% during the same time, and is heading into the earnings with analyst price target of $14.40, compared to share price of $8.58.

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