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.
|
View original
content:https://www.prnewswire.com/news-releases/sprinklr-announces-second-quarter-fiscal-2022-results-301372935.html
SOURCE Sprinklr