Sprinklr Margins Falter Despite Solid Revenue Growth

In New York, Unified CXM platform Sprinklr has reported second quarter revenue up 11% to $197.2m, although its adjusted operating income fell. Founder Ragy Thomas says the firm is taking 'decisive steps' to 'reaccelerate growth'.

For the quarter ended 31st July, subscription revenue rose 9% to $177.9m. GAAP operating loss was $0.1m, compared to operating income of $5.5m a year earlier, while non-GAAP (adjusted) operating income was $15.2m, down from $21.3m a year ago. GAAP operating margin was 0%.

Thomas (pictured) says the company is 'working through continued market challenges' despite having expanded its customer base and delivered a 7th consecutive quarter of free cash flow. He states: 'As we work, we are taking decisive steps to strengthen our foundation to reaccelerate growth and expand margins - a process that will take several quarters. Despite these challenges, we believe that Sprinklr remains uniquely positioned to help large global enterprises unlock and deploy the power of AI across the front office, as demonstrated by multiple global deals won this quarter across all our product suites'. Thomas is now the Co-CEO of the company after the elevation of Trac Pham three months ago to work alongside him - Pham joined the company at the beginning of the year as COO.

For the full financial year ending January 31st 2025. Sprinklr is forecasting total revenue between $785m and $787m, and non-GAAP operating income between $80.5m and $81.5m.

Web site: www.sprinklr.com .