NEW YORK, Sept. 9, 2021 /PRNewswire/ -- Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second quarter ended July 31, 2021.

"Our third consecutive quarter of accelerating revenue growth, and the continued trust that the world's largest and most iconic global enterprises place in Sprinklr, is a testament to the growing need for a Unified-CXM platform. Brands choose our leading AI and our unique ability to connect all customer-facing functions to engage customers on the channels they prefer for a truly unified customer experience," said Ragy Thomas, Sprinklr Founder and CEO. 

Second Quarter Fiscal 2022 Financial Highlights

  • Revenue: Total revenue for the second quarter was $118.7 million, up from $93.5 million one year ago, an increase of 27% year-over-year. Subscription revenue for the second quarter was $103.3 million, up from $82.8 million one year ago, an increase of 25% year-over-year.
  • Operating (Loss) Income and Margin: Second quarter operating loss was $29.3 million, compared to operating income of $4.9 million one year ago. Non-GAAP operating loss was $11.4 million, compared to non-GAAP operating income of $10.9 million one year ago. For the second quarter, GAAP operating margin was (25)% and non-GAAP operating margin was (10)%.
  • Net (Loss) Income Per Share: Second quarter net loss per share was $0.20, compared to net income per share of $0.02 in the second quarter of fiscal year 2021. Non-GAAP net loss per share for the second quarter was $0.09, compared to non-GAAP net income per share of $0.05 in the second quarter of fiscal year 2021.
  • Cash, Cash Equivalents and Marketable Securities: Completed its initial public offering and began trading on the NYSE ("CXM") on June 23, 2021. Net proceeds from the IPO were approximately $276.0 million, after deducting underwriters' discounts and commissions and offering expenses. Total cash, cash equivalents and marketable securities as of July 31, 2021 was $548.8 million.

Financial Outlook

Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2021:

  • Subscription revenue between $104 million and $106 million.
  • Total revenue between $117 million and $119 million.
  • Non-GAAP operating loss between $24 million and $26 million.
  • Non-GAAP net loss per share between $0.09 and $0.10, assuming 260 million weighted average shares outstanding.

Sprinklr is providing the following guidance for the full fiscal year ending January 31, 2022:

  • Subscription revenue between $413 million and $418 million.
  • Total revenue between $470 million and $475 million.
  • Non-GAAP operating loss between $62 million and $66 million.
  • Non-GAAP net loss per share between $0.36 and $0.38, assuming 197 million weighted average shares outstanding.

Conference Call Information
Sprinklr will host a conference call today, September 9, 2021, to discuss second quarter fiscal 2022 financial results, as well as the third quarter and full year fiscal 2022 outlook, at 5:00 p.m. Eastern Time, 2:00 p.m. Pacific Time. Investors are invited to join the webcast by visiting: https://investors.sprinklr.com/. To access the call by phone, dial 877-459-3955 (domestic) or 201-689-8588 (international). The conference ID number is 13721772.  The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.

About Sprinklr Inc.
Sprinklr is a leading enterprise software company for all customer-facing functions. With advanced AI, Sprinklr's unified customer experience management (Unified-CXM) platform helps companies deliver human experiences to every customer, every time, across any modern channel. Headquartered in New York City with employees around the world, Sprinklr works with more than 1,000 of the world's most valuable enterprises — global brands like Microsoft, P&G, Samsung and more than 50% of the Fortune 100. 

Forward-Looking Statements
This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full year fiscal 2022, Sprinklr's growth strategy and its market position. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "will," "would," "should," "could," "can," "predict," "potential," "target," "explore," "continue," or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our rapid growth may be not indicative of our future growth; our revenue growth rate has fluctuated in prior periods; our ability to achieve or maintain profitability; we derive the substantial majority of our revenue from subscriptions to our Unified-CXM platform; our ability to manage our growth and organizational change; the market for Unified-CXM solutions is new and rapidly evolving; our ability to attract new customers in a manner that is cost-effective and assures customer success; our ability to attract and retain customers to use our products; our ability to drive customer subscription renewals and expand our sales to existing customers; our ability to effectively develop platform enhancements, introduce new products or keep pace with technological developments; the market in which we participate is new and rapidly evolving and our ability to compete effectively; our business and growth depend in part on the success of our strategic relationships with third parties; our ability to develop and maintain successful relationships with partners who provide access to data which enhances our Unified-CXM platform's artificial intelligence capabilities; the majority of our customer base consists of large enterprises, and we currently generate a significant portion of our revenue from a relatively small number of enterprises; our investments in research and development; our ability to expand our sales and marketing capabilities; our sales cycle with enterprise and international clients can be long and unpredictable; our business and results of operations may be materially adversely affected by the recent COVID-19 outbreak or other similar outbreaks; certain of our results of operations and financial metrics may be difficult to predict; our ability to maintain data privacy and data security; we rely on third-party data centers and cloud computing providers; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to maintain, protect, and enhance our intellectual property rights; our ability to successfully defend litigation brought against us; and our ability to comply with modified or new laws and regulations applying to our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are and/or will be included under the caption "Risk Factors" in our prospectus filed with the SEC pursuant to Rule 424(b), on June 24, 2021. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended July 31, 2021 and other filings and reports that we may file from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprinklr at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprinklr assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, basic and diluted, and free cash flow. We define these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense-related charges and amortization of acquired intangible assets. We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the Company's management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.

With respect to our expectations under "Financial Outlook" above, reconciliation of non-GAAP operating loss and non-GAAP net loss per share guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Sprinklr's results computed in accordance with GAAP.

Investor Relations:
ir@sprinklr.com

Media & Press:
PR@sprinklr.com

Sprinklr, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)





July 31,
2021

January 31,
2021

Assets



Current assets



Cash and cash equivalents

$

433,990


$

68,037


Marketable securities

114,806


212,652


Accounts receivable, net of allowance for doubtful accounts of $2.7 million and $3.2 million, respectively

104,898


116,278


Prepaid expenses and other current assets

94,170


95,819


Total current assets

747,864


492,786


Property and equipment, net

12,322


9,011


Goodwill and other intangible assets

47,287


47,427


Other non-current assets

44,005


36,669


Total assets

$

851,478


$

585,893





Liabilities and stockholders' equity



Liabilities



Current liabilities



Accounts payable

$

10,150


$

16,955


Accrued expenses and other current liabilities

60,276


63,170


Deferred revenue

231,129


221,439


Total current liabilities

301,555


301,564


Senior subordinated secured convertible notes  


78,848


Deferred revenue less current portion

13,198


19,873


Deferred tax liability, long-term

870


869


Other liabilities, long-term

1,871


2,006


Total liabilities

317,494


403,160


Stockholders' equity



Convertible preferred stock


424,992


Class A common stock



Class B common Stock

8



Common stock


4


Treasury stock

(23,831)


(23,831)


Additional paid-in capital

947,041


122,061


Accumulated other comprehensive (loss) income

(10)


787


Accumulated deficit

(389,224)


(341,280)


Total stockholders' equity

533,984


182,733


Total liabilities and stockholders' equity

$

851,478


$

585,893


 

Sprinklr, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)








Three Months Ended July 31,


Six Months Ended July 31,


2021

2020


2021

2020

Revenue:





  Subscription

$

103,307


$

82,807



$

200,079


$

164,467


  Professional services

15,385


10,691



29,593


22,019


Total revenue:

118,692


93,498



229,672


186,486


Costs of revenue:






  Costs of subscription (1)

22,341


16,314



43,392


36,253


  Costs of professional services (1)

14,997


10,980



25,655


22,503


Total costs of revenue

37,338


27,294



69,047


58,756


Gross profit

81,354


66,204



160,625


127,730


Operating expenses:






  Research and development (1)

15,087


8,152



28,215


16,480


  Sales and marketing (1)(2)

70,249


42,273



130,887


91,832


  General and administrative (1)

25,323


10,926



41,531


22,467


Total operating expenses

110,659


61,351



200,633


130,779


Operating (loss) income

(29,305)


4,853



(40,008)


(3,049)


Other expense, net

(1,436)


(1,468)



(3,627)


(3,361)


(Loss) income before provision for income taxes

(30,741)


3,385



(43,635)


(6,410)


Provision for income taxes

2,506


376



4,309


1,788


Net (loss) income

$

(33,247)


$

3,009



$

(47,944)


$

(8,198)








Net (loss) income per share attributable to Class A and Class B common stockholders, basic

$

(0.20)


$

0.02



$

(0.36)


$

(0.09)


Weighted average shares used in computing net (loss) income per share attributable to Class A and Class B common stockholders, basic

167,590


87,196



133,479


86,787


Net (loss) income per share attributable to Class A and Class B common stockholders, diluted

$

(0.20)


$

0.01



$

(0.36)


$

(0.09)


Weighted average shares used in computing net (loss) income per share attributable to Class A and Class B common stockholders, diluted

167,590


201,134



133,479


86,787



(1) Includes stock-based compensation expense, net of amounts capitalized, as follows:




Three Months Ended July 31,


Six  Months Ended July 31,


2021


2020


2021


2020


(in thousands)

Costs of subscription

$

443



$

314



$

822



$

518


Costs of professional services

737



315



1,022



454


Research and development

1,501



607



2,729



1,087


Sales and marketing

4,766



2,756



8,966



4,105


General and administrative

9,179



1,853



11,993



3,243


Stock-based compensation expense, net of amounts capitalized

$

16,626



$

5,845



$

25,532



$

9,407



(2) Includes amortization of acquired intangible assets as follows:




Three Months Ended July 31,


Six  Months Ended July 31,


2021


2020


2021


2020


(in thousands)

Sales and marketing

$

82



$

156



$

164



$

461


Total amortization of acquired intangible assets

$

82



$

156



$

164



$

461


 

Sprinklr, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)



Six months ended July 31,


2021

2020

Cash flow from operating activities:



Net loss

$

(47,944)


$

(8,198)


Adjustments to reconcile net loss to net cash used in operating activities:



Depreciation and amortization expense

3,451


2,877


Bad debt expense

(226)


286


Stock-based compensation expense

25,532


9,407


Non-cash interest paid in kind and discount amortization

3,267


1,517


Deferred income taxes

1


87


Other noncash items, net

(999)


(15)


Changes in operating assets and liabilities:



Accounts receivable

11,810


29,661


Prepaid expenses and other current assets

1,673


18,243


Other noncurrent assets

(7,151)


3,437


Accounts payable

(6,751)


(2,173)


Accrued expenses and other current liabilities

(2,326)


(14,474)


Deferred revenue

2,956


(17,240)


Other liabilities

(154)


34


Net cash (used in) provided by operating activities

(16,861)


23,449


Cash flow from investing activities:



Purchases of marketable securities

(61,758)



Sales of marketable securities

56,652



Maturities of marketable securities

101,860



Purchases of property and equipment

(3,862)


(1,586)


Capitalized internal-use software

(2,481)


(1,546)


Net cash provided by (used in) investing activities

90,411


(3,132)


Cash flow from financing activities:



Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs

276,001



Proceeds from Senior subordinated secured convertible notes  


73,425


Proceeds from short-term borrowings


49,973


Repayments of short term borrowings


(49,973)


Payments of debt and equity issuance costs


(160)


Proceeds from issuance of common stock upon exercise of stock options

16,659


1,357


Net cash provided by financing activities

292,660


74,622


Effect of exchange rate fluctuations on cash and cash equivalents

(257)


(83)


Net change in cash and cash equivalents

365,953


94,856


Cash and cash equivalents at beginning of period

68,037


10,470


Cash and cash equivalents at end of period

$

433,990


$

105,326


 

Sprinklr, Inc.

Reconciliation of Non-GAAP Measures

(in thousands)

(Unaudited)










Three Months Ended July 31,


Six Months Ended July 31,


2021


2020


2021


2020

Non-GAAP gross profit:








GAAP gross profit

$

81,354



$

66,204



$

160,625



$

127,730


Stock-based compensation expense-related charges (1)

1,292



629



1,956



972


Non-GAAP gross profit

$

82,646



$

66,833



$

162,581



$

128,702


Gross margin

69

%


71

%


70

%


68

%

Non-GAAP gross margin

70

%


71

%


71

%


69

%









Non-GAAP operating (loss) income:








GAAP operating (loss) income

$

(29,305)



$

4,853



$

(40,008)



$

(3,049)


Stock-based compensation expense-related charges (2)

17,818



5,845



26,724



9,407


Amortization of acquired intangible assets

82



156



164



461


Non-GAAP operating (loss) income

$

(11,405)



$

10,854



$

(13,120)



$

6,819










Non-GAAP net (loss) income and net (loss) income per share:








GAAP net (loss) income:

$

(33,247)



$

3,009



$

(47,944)



$

(8,198)


Stock-based compensation expense-related charges (2)

17,818



5,845



26,724



9,407


Amortization of acquired intangible assets

82



156



164



461


Non-GAAP net (loss) income

$

(15,347)



$

9,010



$

(21,056)



$

1,670


Less: amounts allocated to participating securities



(4,866)






Non-GAAP net (loss) income attributable to Class A and

Class B common stockholders

$

(15,347)



$

4,144



$

(21,056)



$

1,670


Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic

167,590



87,196



133,479



86,787


Non-GAAP net (loss) income per common share attributable to Class A and Class B common stockholders

$

(0.09)



$

0.05



$

(0.16)



$

0.02










Free cash flow:








Net cash (used in) provided by operating activities

$

(6,467)



$

(4,142)



$

(16,861)



$

23,449


Purchase of property and equipment

(2,690)



(814)



(3,862)



(1,586)


Capitalized internal-use software

(1,447)



(827)



(2,481)



(1,546)


Free cash flow

$

(10,604)



$

(5,783)



$

(23,204)



$

20,317



(1) Includes $0.1 million and $0.1 million of employer payroll tax related to stock-based compensation expense for the three and six months ended July 31, 2021, respectively.


(2) Includes $1.2 million and $1.2 million of employer payroll tax related to stock-based compensation expense for the three and six months ended July 31, 2021, respectively.

 

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SOURCE Sprinklr

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