Sprinklr Announces Third Quarter Fiscal 2022 Results
Sprinklr (NYSE: CXM) reported Q3 2022 total revenue of $127.1 million, a 32% increase year-over-year, with subscription revenue rising 29% to $109.9 million. Despite revenue growth, the company faced an operating loss of $26.3 million, up from a loss of $15.3 million in Q3 2021. Net loss per share improved to $0.11 from $0.21 a year earlier. For Q4 2022, Sprinklr anticipates total revenue between $129 million and $131 million, and for the full year, between $486 million and $488 million.
- Total revenue increased by 32% year-over-year to $127.1 million.
- Subscription revenue grew by 29% year-over-year to $109.9 million.
- CXM reported a significant growth in customer base with 800 customers, up 29% year-over-year.
- Operating loss widened to $26.3 million compared to $15.3 million the previous year.
- Non-GAAP net loss per share transitioned from income of $0.02 to a loss of $0.06 year-over-year.
-
Q3 Total Revenue of
, up$127.1 million 32% year-over-year -
Q3 Subscription Revenue up
29% year-over-year -
RPO up
29% year-over-year1 -
80
customers, up$1 million 29% year-over-year2
“This is our fourth consecutive quarter of accelerating revenue growth and we couldn't be more pleased with our team's relentless focus on our customers. The most iconic enterprise brands continue to validate that the rise of Unified-CXM is inevitable. And only a platform designed with industry leading AI can solve their most complex problems.
Third Quarter Fiscal 2022 Financial Highlights
-
Revenue: Total revenue for the third quarter was
, up from$127.1 million one year ago, an increase of$96.3 million 32% year-over-year. Subscription revenue for the third quarter was , up from$109.9 million one year ago, an increase of$85.0 million 29% year-over-year. -
Operating (Loss) Income and Margin: Third quarter operating loss was
, compared to operating loss of$26.3 million one year ago. Non-GAAP operating loss was$15.3 million , compared to non-GAAP operating income of$13.5 million one year ago. For the third quarter, GAAP operating margin was (21)% and non-GAAP operating margin was (11)%.$8.1 million -
Net (Loss) Income Per Share: Third quarter net loss per share was
, compared to net loss per share of$0.11 in the third quarter of fiscal year 2021. Non-GAAP net loss per share for the third quarter was$0.21 , compared to non-GAAP net income per share of$0.06 in the third quarter of fiscal year 2021.$0.02 -
Cash,
Cash Equivalents and Marketable Securities : Total cash, cash equivalents and marketable securities as ofOctober 31, 2021 was .$541.5 million
Financial Outlook
-
Subscription revenue between
and$113 million .$115 million -
Total revenue between
and$129 million .$131 million -
Non-GAAP operating loss between
and$21 million .$23 million -
Non-GAAP net loss per share between
and$0.08 , assuming 260 million weighted average shares outstanding.$0.09
-
Subscription revenue between
and$423 million .$425 million -
Total revenue between
and$486 million .$488 million -
Non-GAAP operating loss between
and$48 million .$50 million -
Non-GAAP net loss per share between
and$0.30 , assuming 195 million weighted average shares outstanding.$0.31
Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and non-GAAP gross margin, non-GAAP operating (loss) income and non-GAAP operating margin, non-GAAP net (loss) income, 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, as applicable, stock-based compensation expense-related charges and amortization of acquired intangible assets. We believe that 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 Sprinklr’s financial statements. In addition, they are subject to inherent limitations, as they reflect the exercise of judgment by Sprinklr’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.
Conference Call Information
About
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 fourth quarter and full year fiscal 2022, our growth strategy and the ability of our platform to deliver a unified experience to address our customers’ demands. 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 not be 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 that 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 ongoing COVID-19 pandemic 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; and our ability to successfully defend litigation brought against us. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be discussed in our Quarterly Report on Form 10-Q for the quarter ended
__________________________
1 RPO, or remaining performance obligations, represents contracted revenues that had not yet been recognized, and include deferred revenues and amounts that will be invoiced and recognized in future periods.
2
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(in thousands, except per share data) |
||||||
(unaudited) |
||||||
|
|
|
||||
|
|
|
||||
Assets |
|
|
||||
Current assets |
|
|
||||
Cash and cash equivalents |
$ |
522,386 |
|
$ |
68,037 |
|
Marketable securities |
19,111 |
|
212,652 |
|
||
Accounts receivable, net of allowance for doubtful accounts of |
103,579 |
|
116,278 |
|
||
Prepaid expenses and other current assets |
96,807 |
|
95,819 |
|
||
Total current assets |
741,883 |
|
492,786 |
|
||
Property and equipment, net |
13,441 |
|
9,011 |
|
||
|
50,778 |
|
47,427 |
|
||
Other non-current assets |
38,608 |
|
36,669 |
|
||
Total assets |
$ |
844,710 |
|
$ |
585,893 |
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
||||
Liabilities |
|
|
||||
Current liabilities |
|
|
||||
Accounts payable |
$ |
11,055 |
|
$ |
16,955 |
|
Accrued expenses and other current liabilities |
78,234 |
|
63,170 |
|
||
Deferred revenue |
221,918 |
|
221,439 |
|
||
Total current liabilities |
311,207 |
|
301,564 |
|
||
Senior subordinated secured convertible notes |
— |
|
78,848 |
|
||
Deferred revenue less current portion |
11,854 |
|
19,873 |
|
||
Deferred tax liability, long-term |
869 |
|
869 |
|
||
Other liabilities, long-term |
2,366 |
|
2,006 |
|
||
Total liabilities |
326,296 |
|
403,160 |
|
||
Stockholders’ equity |
|
|
||||
Convertible preferred stock |
— |
|
424,992 |
|
||
Class A common stock |
2 |
|
— |
|
||
Class B common Stock |
6 |
|
— |
|
||
Common stock |
— |
|
4 |
|
||
|
(23,831) |
|
(23,831) |
|
||
Additional paid-in capital |
960,697 |
|
122,061 |
|
||
Accumulated other comprehensive (loss) income |
(5) |
|
787 |
|
||
Accumulated deficit |
(418,455) |
|
(341,280) |
|
||
Total stockholders’ equity |
518,414 |
|
182,733 |
|
||
Total liabilities and stockholders’ equity |
$ |
844,710 |
|
$ |
585,893 |
|
|
|||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||
(in thousands, except per share data) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
|
2021 |
2020 |
|
2021 |
2020 |
||||||||
Revenue: |
|
|
|
|
|||||||||
Subscription |
$ |
109,941 |
|
$ |
85,040 |
|
|
$ |
310,020 |
|
$ |
249,507 |
|
Professional services |
17,115 |
11,292 |
|
46,708 |
33,311 |
||||||||
Total revenue: |
127,056 |
|
96,332 |
|
|
356,728 |
|
282,818 |
|
||||
Costs of revenue: |
|
|
|
|
|
||||||||
Costs of subscription (1) |
22,835 |
19,392 |
|
66,228 |
55,645 |
||||||||
Costs of professional services (1) |
15,865 |
10,831 |
|
41,520 |
33,334 |
||||||||
Total costs of revenue |
38,700 |
|
30,223 |
|
|
107,748 |
|
88,979 |
|
||||
Gross profit |
88,356 |
|
66,109 |
|
|
248,980 |
|
193,839 |
|
||||
Operating expenses: |
|
|
|
|
|
||||||||
Research and development (1) |
16,621 |
10,394 |
|
44,836 |
26,874 |
||||||||
Sales and marketing (1)(2) |
76,191 |
45,228 |
|
207,079 |
137,060 |
||||||||
General and administrative (1) |
21,833 |
25,768 |
|
63,364 |
48,234 |
||||||||
Total operating expenses |
114,645 |
|
81,390 |
|
|
315,279 |
|
212,168 |
|
||||
Operating loss |
(26,289) |
|
(15,281) |
|
|
(66,299) |
|
(18,329) |
|
||||
Other expense, net |
(1,119) |
(2,587) |
|
(4,744) |
(5,949) |
||||||||
Loss before provision for income taxes |
(27,408) |
|
(17,868) |
|
|
(71,043) |
|
(24,278) |
|
||||
Provision for income taxes |
1,823 |
1,100 |
|
6,132 |
2,888 |
||||||||
Net loss |
$ |
(29,231) |
|
$ |
(18,968) |
|
|
$ |
(77,175) |
|
$ |
(27,166) |
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to Class A and Class
|
$ |
(0.11) |
|
$ |
(0.21) |
|
|
$ |
(0.44) |
|
$ |
(0.31) |
|
Weighted average shares used in computing net
|
255,195 |
91,672 |
|
174,497 |
88,428 |
(1) Includes stock-based compensation expense, net of amounts capitalized, as follows: |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands) |
||||||||||||||
Costs of subscription |
$ |
589 |
|
|
$ |
338 |
|
|
$ |
1,411 |
|
|
$ |
856 |
|
Costs of professional services |
889 |
|
422 |
|
1,911 |
|
876 |
||||||||
Research and development |
2,186 |
|
1,823 |
|
4,915 |
|
2,910 |
||||||||
Sales and marketing |
4,997 |
|
4,889 |
|
13,963 |
|
8,994 |
||||||||
General and administrative |
3,760 |
|
15,834 |
|
15,753 |
|
19,077 |
||||||||
Stock-based compensation expense, net of amounts capitalized |
$ |
12,421 |
|
|
$ |
23,306 |
|
|
$ |
37,953 |
|
|
$ |
32,713 |
|
(2) Includes amortization of acquired intangible assets as follows: |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands) |
||||||||||||||
Sales and marketing |
$ |
116 |
$ |
82 |
$ |
280 |
$ |
543 |
|||||||
Total amortization of acquired intangible assets |
$ |
116 |
$ |
82 |
$ |
280 |
$ |
543 |
|
||||||
Condensed Consolidated Statements of Cash Flows |
||||||
(in thousands) |
||||||
(Unaudited) |
||||||
|
||||||
|
Nine months ended |
|||||
|
2021 |
2020 |
||||
Cash flow from operating activities: |
|
|
||||
Net loss |
$ |
(77,175) |
|
$ |
(27,166) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
||||
Depreciation and amortization expense |
5,638 |
|
4,248 |
|
||
Bad debt expense |
47 |
|
427 |
|
||
Stock-based compensation expense |
37,953 |
|
32,713 |
|
||
Non-cash interest paid in kind and discount amortization |
3,266 |
|
3,494 |
|
||
Deferred income taxes |
1 |
|
130 |
|
||
Other noncash items, net |
(1,187) |
|
(149) |
|
||
Changes in operating assets and liabilities: |
|
|
||||
Accounts receivable |
12,741 |
|
22,819 |
|
||
Prepaid expenses and other current assets |
(1,104) |
|
(1,837) |
|
||
Other noncurrent assets |
(1,817) |
|
5,182 |
|
||
Accounts payable |
(5,774) |
|
586 |
|
||
Accrued expenses and other current liabilities |
16,413 |
|
(335) |
|
||
Deferred revenue |
(7,132) |
|
(24,235) |
|
||
Other liabilities |
197 |
|
(103) |
|
||
Net cash (used in) provided by operating activities |
(17,933) |
|
15,774 |
|
||
Cash flow from investing activities: |
|
|
||||
Purchases of marketable securities |
(61,758) |
|
(170,035) |
|
||
Sales of marketable securities |
56,652 |
|
— |
|
||
Maturities of marketable securities |
197,555 |
|
— |
|
||
Purchases of property and equipment |
(5,197) |
|
(2,078) |
|
||
Capitalized internal-use software |
(4,150) |
|
(2,504) |
|
||
Acquisitions, net of cash acquired |
(3,625) |
|
— |
|
||
Net cash provided by (used in) investing activities |
179,477 |
|
(174,617) |
|
||
Cash flow from financing activities: |
|
|
||||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts,
|
275,974 |
|
— |
|
||
Proceeds from issuance of convertible preferred stock, net of issuance costs |
— |
|
191,752 |
|
||
Proceeds from Senior subordinated secured convertible notes |
— |
|
73,425 |
|
||
Proceeds from issuance of stock warrants |
— |
|
7,639 |
|
||
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 |
17,891 |
|
13,375 |
|
||
Net cash provided by financing activities |
293,865 |
|
286,031 |
|
||
Effect of exchange rate fluctuations on cash and cash equivalents |
(1,060) |
|
(251) |
|
||
Net change in cash and cash equivalents |
454,349 |
|
126,937 |
|
||
Cash and cash equivalents at beginning of period |
68,037 |
|
10,470 |
|
||
Cash and cash equivalents at end of period |
$ |
522,386 |
|
$ |
137,407 |
|
|
|||||||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||
(in thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Non-GAAP gross profit: |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
88,356 |
|
|
$ |
66,109 |
|
|
$ |
248,980 |
|
|
$ |
193,839 |
|
Stock-based compensation expense-related charges (1) |
1,478 |
|
|
760 |
|
|
3,434 |
|
|
1,732 |
|
||||
Non-GAAP gross profit |
$ |
89,834 |
|
|
$ |
66,869 |
|
|
$ |
252,414 |
|
|
$ |
195,571 |
|
Gross margin |
70 |
% |
|
69 |
% |
|
70 |
% |
|
69 |
% |
||||
Non-GAAP gross margin |
71 |
% |
|
69 |
% |
|
71 |
% |
|
69 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP operating (loss) income: |
|
|
|
|
|
|
|
||||||||
GAAP operating loss |
$ |
(26,289) |
|
|
$ |
(15,281) |
|
|
$ |
(66,299) |
|
|
$ |
(18,329) |
|
Stock-based compensation expense-related charges (2) |
12,647 |
|
|
23,306 |
|
|
39,371 |
|
|
32,713 |
|
||||
Amortization of acquired intangible assets |
116 |
|
|
82 |
|
|
280 |
|
|
543 |
|
||||
Non-GAAP operating (loss) income |
$ |
(13,526) |
|
|
$ |
8,107 |
|
|
$ |
(26,648) |
|
|
$ |
14,927 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net (loss) income and net (loss) income per share: |
|
|
|
|
|
|
|
||||||||
GAAP net loss: |
$ |
(29,231) |
|
|
$ |
(18,968) |
|
|
$ |
(77,175) |
|
|
$ |
(27,166) |
|
Stock-based compensation expense-related charges (2) |
12,647 |
|
|
23,306 |
|
|
39,371 |
|
|
32,713 |
|
||||
Amortization of acquired intangible assets |
116 |
|
|
82 |
|
|
280 |
|
|
543 |
|
||||
Non-GAAP net (loss) income |
$ |
(16,468) |
|
|
$ |
4,420 |
|
|
$ |
(37,524) |
|
|
$ |
6,090 |
|
Less: amounts allocated to participating securities |
— |
|
|
(2,526) |
|
|
— |
|
|
(3,535) |
|
||||
Non-GAAP net (loss) income attributable to Class A and
|
$ |
(16,468) |
|
|
$ |
1,894 |
|
|
$ |
(37,524) |
|
|
$ |
2,555 |
|
Weighted-average shares outstanding used in computing net
|
255,195 |
|
|
91,672 |
|
|
174,497 |
|
|
88,428 |
|
||||
Non-GAAP net (loss) income per common share attributable
|
$ |
(0.06) |
|
|
$ |
0.02 |
|
|
$ |
(0.22) |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow: |
|
|
|
|
|
|
|
||||||||
Net cash (used in) provided by operating activities |
$ |
(1,074) |
|
|
$ |
(7,675) |
|
|
$ |
(17,933) |
|
|
$ |
15,774 |
|
Purchase of property and equipment |
(1,334) |
|
|
(492) |
|
|
(5,197) |
|
|
(2,078) |
|
||||
Capitalized internal-use software |
(1,669) |
|
|
(958) |
|
|
(4,150) |
|
|
(2,504) |
|
||||
Free cash flow |
$ |
(4,077) |
|
|
$ |
(9,125) |
|
|
$ |
(27,280) |
|
|
$ |
11,192 |
|
(1) Includes
(2) Includes
View source version on businesswire.com: https://www.businesswire.com/news/home/20211209006014/en/
Investor Relations:
ir@sprinklr.com
Media & Press:
PR@sprinklr.com
Source:
FAQ
What were Sprinklr's Q3 2022 total revenue results?
What is the projected subscription revenue for Sprinklr's Q4 2022?
How did Sprinklr's net loss per share change in Q3 2022?
What is the outlook for Sprinklr's total revenue for the full fiscal year 2022?