What To Expect From Sprinklr’s (CXM) Q4 Earnings

Radek Strnad /
2022/04/05 7:16 am EDT

Customer experience software provider Sprinklr (NYSE:CXM) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Sprinklr reported revenues of $127 million, up 31.8% year on year, beating analyst revenue expectations by 7.58%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter. The company added 6 enterprise customers paying more than $1m annually to a total of 80.

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 25.2% year on year to $130.4 million, Adjusted loss is expected to come in at -$0.09 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 8.09%.

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. Sprout Social delivered top-line growth of 42.6% year on year, beating analyst estimates by 3.87% and DoubleVerify reported revenues up 34.1% year on year, exceeding estimates by 4.54%. Sprout Social traded up 4.6% on the results, DoubleVerify was up 0.21%. Read our full analysis of Sprout Social's results here and DoubleVerify's results here.

There has been positive sentiment among investors in the software segment, with tech stocks up on average 18.4% over the last month. Sprinklr is up 12% during the same time, and is heading into the earnings with analyst price target of $17.7, compared to share price of $12.39.

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.