Latest news with #Sprinklr
Yahoo
3 days ago
- Business
- Yahoo
Morgan Stanley Raises Sprinklr (CXM) PT to $10, Maintains Equal Weight Rating
On Thursday, Morgan Stanley analyst Elizabeth Porter raised the price target on Sprinklr Inc. (NYSE:CXM) to $10 from $8, while maintaining an Equal Weight rating on the shares. Porter noted that Sprinklr's Q1 2025 report showed progress in the company's transformation, with operational improvements and a stable near-term outlook. A software engineer working on a monitor in a modern office. Morgan Stanley is encouraged by the early stages of what is expected to be an approximately 18-month transformation and believes the shares appropriately reflect a turnaround story. The company's total revenue reached $205.5 million in Q1, which was up 5% year-over-year, and subscription revenue at $184.1 million, which was up 4%. Professional services revenue in particular was $21.4 million. The subscription and revenue-based net dollar expansion rate was 102%, and the company had 146 customers with $1 million or more in subscription revenue, which is up 6%. However, Sprinklr is facing longer sales cycles and increased scrutiny of enterprise spending due to macroeconomic uncertainty. The company is also contending with customer churn and downsell activity, which are impacting its net dollar expansion rate. The company anticipates a negative impact of $10 million on non-GAAP operating expenses due to foreign exchange rate volatility. Sprinklr Inc. (NYSE:CXM) provides global enterprise cloud software products. While we acknowledge the potential of CXM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
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Sprinklr (CXM) Reports Q1 Earnings: What Key Metrics Have to Say
Sprinklr (CXM) reported $205.5 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 4.9%. EPS of $0.12 for the same period compares to $0.09 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $201.89 million, representing a surprise of +1.79%. The company delivered an EPS surprise of +20.00%, with the consensus EPS estimate being $0.10. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Sprinklr performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Gross Margin - Subscription: 77% versus the five-analyst average estimate of 76.4%. Gross Margin - Professional services: 4% versus the two-analyst average estimate of -1%. Revenue- Subscription: $184.13 million versus $182.39 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change. Revenue- Professional services: $21.37 million compared to the $19.49 million average estimate based on five analysts. The reported number represents a change of +14.9% year over year. View all Key Company Metrics for Sprinklr here>>>Shares of Sprinklr have returned +17.1% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Sprinklr (CXM) Stock Trades Up, Here Is Why
Shares of customer experience software provider Sprinklr (NYSE:CXM) jumped 5.7% in the morning session after the company reported a "beat-and-raise" quarter (Q1 FY-26). Sprinklr raised its full-year revenue and EPS guidance, which blew past analysts' expectations. The quarter was also solid as its revenue, EPS, and adjusted operating income exceeded Wall Street's estimates. The big win came on margins. Operating margin on a non-GAAP basis climbed to 18% from 11% last year, helped by pulling back on sales and marketing costs. That made a real difference in earnings per share, which jumped more than 30% and blew past Wall Street's estimates. Overall, we think this was a solid "beat-and-raise" quarter. After the initial pop the shares cooled down to $8.75, up 2.2% from previous close. Is now the time to buy Sprinklr? Access our full analysis report here, it's free. Sprinklr's shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 24.2% on the news that the company reported weak first quarter results and provided full-year revenue guidance below expectations after being lowered. Also, its revenue guidance for next quarter missed Wall Street's estimates. The company called out a soft demand environment with longer sales cycles and heightened budgetary scrutiny. In addition, it observed higher churn in its core product suites due to reduced marketing spend, elimination of programs, and seat reductions. These issues contributed to the weak guidance as management expects the elevated churn level to continue for the full year FY '25. On the other hand, Sprinklr recorded significant improvement in new large contract wins. Overall, the guidance was quite bad and weighed on the stock. Following the results, D.A. Davidson downgraded the stock's rating from Buy to Neutral, while Cantor Fitzgerald also lowered the rating from Overweight to Neutral. Sprinklr is up 2.4% since the beginning of the year, but at $8.75 per share, it is still trading 19.3% below its 52-week high of $10.84 from June 2024. Investors who bought $1,000 worth of Sprinklr's shares at the IPO in June 2021 would now be looking at an investment worth $496.87. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Yahoo
6 days ago
- Business
- Yahoo
Sprinklr (CXM) Surpasses Q1 Earnings and Revenue Estimates
Sprinklr (CXM) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this customer experience software developer would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Sprinklr , which belongs to the Zacks Technology Services industry, posted revenues of $205.5 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.79%. This compares to year-ago revenues of $195.96 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sprinklr shares have added about 1.2% since the beginning of the year versus the S&P 500's gain of 1.5%. While Sprinklr has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sprinklr: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $202.92 million in revenues for the coming quarter and $0.38 on $820.03 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Corporation (NEXCF), another stock in the same industry, has yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Corporation's revenues are expected to be $0.22 million, down 71.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report Corporation (NEXCF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Sprinklr's (NYSE:CXM) Q1 Sales Top Estimates, Quarterly Revenue Guidance Slightly Exceeds Expectations
Customer experience software provider Sprinklr (NYSE:CXM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 4.9% year on year to $205.5 million. Guidance for next quarter's revenue was better than expected at $205.5 million at the midpoint, 1.4% above analysts' estimates. Its non-GAAP profit of $0.12 per share was 21.6% above analysts' consensus estimates. Is now the time to buy Sprinklr? Find out in our full research report. Revenue: $205.5 million vs analyst estimates of $201.8 million (4.9% year-on-year growth, 1.8% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.10 (21.6% beat) Adjusted Operating Income: $36.74 million vs analyst estimates of $31.9 million (17.9% margin, 15.2% beat) The company slightly lifted its revenue guidance for the full year to $826 million at the midpoint from $822.5 million Management raised its full-year Adjusted EPS guidance to $0.40 at the midpoint, a 2.6% increase Operating Margin: -0.9%, down from 2.9% in the same quarter last year Free Cash Flow Margin: 39.3%, up from 0.8% in the previous quarter Market Capitalization: $2.20 billion 'Our Q1 results reflect solid progress in our transformation to better serve our customers and partners. We are deeply focused on improving our execution and delivering business value to the brands we serve with our AI-native CXM platform. We also generated record free cash flow in the quarter,' said Rory Read, Sprinklr President and CEO. Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Sprinklr grew its sales at a 15.3% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Sprinklr reported modest year-on-year revenue growth of 4.9% but beat Wall Street's estimates by 1.8%. Company management is currently guiding for a 4.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products and services will see some demand headwinds. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. It's relatively expensive for Sprinklr to acquire new customers as its CAC payback period checked in at 168.9 months this quarter. The company's slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low. We were impressed by how Sprinklr raised its full-year revenue and EPS guidance, which blew past analysts' expectations. We were also glad its revenue, EPS, and adjusted operating income exceeded Wall Street's estimates. Overall, we think this was a solid "beat-and-raise" quarter. The stock traded up 3.9% to $8.89 immediately following the results. Sprinklr had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
