- Q4 Total Revenue of $136 million, up 30%
year-over-year
- Q4 Subscription Revenue of $118 million, up 31%
year-over-year
- RPO up 36% year-over-year
- Q4 NDE at 120%; steadily improving every quarter since
IPO
- 82 $1 million customers, up 26% year-over-year
Sprinklr (NYSE: CXM), the unified customer experience management
(Unified-CXM) platform for modern enterprises, today reported
financial results for its fourth quarter and fiscal year ended
January 31, 2022.
“Fiscal Year 2022 was a monumental year for Sprinklr. We
accelerated our growth, went public, and created a new category
called unified customer experience management for the world’s
leading enterprise brands. Our results this quarter demonstrate our
deep commitment to our customers and partners as we support their
shift from a brand-centric past to a customer-centric future. We’re
innovating faster than ever before to make our platform and leading
artificial intelligence the foundation of our customer's success so
we can continue our strong growth in Fiscal Year 2023,” said Ragy
Thomas, Sprinklr Founder and CEO.
Fourth Quarter Fiscal 2022 Financial Highlights
- Revenue: Total revenue for the fourth quarter was $135.7
million, up from $104.1 million one year ago, an increase of 30%
year-over-year. Subscription revenue for the fourth quarter was
$117.7 million, up from $90.1 million one year ago, an increase of
31% year-over-year.
- Operating (Loss) Income and Margin: Fourth quarter
operating loss was $35.8 million, compared to operating loss of
$8.3 million one year ago. Non-GAAP operating loss was $11.5
million, compared to non-GAAP operating income of $4.2 million one
year ago. For the fourth quarter, GAAP operating margin was (26%)
and non-GAAP operating margin was (8%).
- Net (Loss) Income Per Share: Fourth quarter net loss per
share was $0.14, compared to net loss per share of $0.12 in the
fourth quarter of fiscal year 2021. Non-GAAP net loss per share for
the fourth quarter was $0.05, compared to non-GAAP net income per
share of $0.00 in the fourth quarter of fiscal year 2021.
- Cash, Cash Equivalents and Marketable Securities: Total
cash, cash equivalents and marketable securities as of January 31,
2022 was $532.4 million.
Full Year Fiscal 2022 Financial Highlights
- Revenue: Total revenue for fiscal year 2022 was $492.4
million, up from $386.9 million one year ago, an increase of 27%
year-over-year. Subscription revenue for fiscal year 2022 was
$427.7 million, up from $339.6 million one year ago, an increase of
26.0% year-over-year.
- Operating (Loss) Income and Margin: Fiscal year 2022
operating loss was $99.5 million, compared to operating loss of
$25.6 million one year ago. Non-GAAP operating loss was $35.5
million, compared to non-GAAP operating income of $20.1 million one
year ago. For fiscal year 2022, GAAP operating margin was (20%) and
non-GAAP operating margin was (7 %).
- Net (Loss) Income Per Share: Fiscal year 2022 net loss
per share was $0.57, compared to net loss per share of $0.42 in
fiscal year 2021. Non-GAAP net loss per share for fiscal year 2022
was $0.24, compared to non-GAAP net income per share of $0.04 in
fiscal year 2021.
Financial Outlook
Sprinklr is providing the following guidance for the first
fiscal quarter ending April 30, 2022:
- Subscription revenue between $123 million and $125
million.
- Total revenue between $140 million and $142 million.
- Non-GAAP operating loss between $14 million and $16
million.
- Non-GAAP net loss per share between $0.06 and $0.07, assuming
260 million weighted average shares outstanding.
Sprinklr is providing the following guidance for the full fiscal
year ending January 31, 2023:
- Subscription revenue between $536 million and $544
million.
- Total revenue between $607 million and $615 million.
- Non-GAAP operating loss between $44 million and $48
million.
- Non-GAAP net loss per share between $0.20 and $0.22, assuming
260 million weighted average shares outstanding.
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 and non-GAAP net (loss) income per
share
We define these non-GAAP financial measures as the respective
GAAP measures, excluding, as applicable, stock-based compensation
expense-related charges, charges on litigation settlements and
amortization of acquired intangible assets. We believe that it is
useful to exclude stock-based compensation expense-related charges
and amortization of acquired intangible assets 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. We also exclude charges on litigation
settlements that are considered to be non-ordinary course as we do
not consider such losses to be indicative of our core business.
In addition, the press release and the accompanying tables
contain free cash flow which is defined as net cash used in
operating activities less cash used for purchases of property and
equipment and capitalized internal-use software. We believe that
free cash flow is a useful indicator of liquidity as it measures
our ability to generate cash, or our need to access additional
sources of cash, to fund operations and investments.
However, non-GAAP financial measures have limitations in their
usefulness to investors because they have no standardized meaning
prescribed by GAAP and are not prepared under any comprehensive set
of accounting rules or principles. In addition, other companies,
including companies in our industry, may calculate similarly titled
non-GAAP financial measures differently or may use other measures
to evaluate their performance, all of which could reduce the
usefulness of our non-GAAP financial measures as tools for
comparison. As a result, our non-GAAP financial measures are
presented for supplemental informational purposes only and should
not be considered in isolation or as a substitute for our
consolidated financial statements presented in accordance with
GAAP.
Sprinklr has not reconciled its expectations as to non-GAAP
operating loss, or as to non-GAAP net loss per share, to their most
directly comparable GAAP measures as a result of the high
variability, complexity and low visibility with respect to the
charges excluded from these non-GAAP measures; in particular, the
measures and effects of stock-based compensation expense specific
to equity compensation awards that are directly impacted by
unpredictable fluctuations in our stock price. We expect the
variability of the above charges to have a significant, and
potentially unpredictable, impact on our future GAAP financial
results. Accordingly, reconciliation is not available without
unreasonable effort, although it is important to note that these
factors could be material to Sprinklr’s results computed in
accordance with GAAP.
Conference Call Information
Sprinklr will host a conference call today, April 6, 2022, to
discuss fourth quarter and full year fiscal 2022 financial results,
as well as the first quarter and full year fiscal 2023 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 13728085. 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-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 first quarter and full year fiscal 2023, 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 October 31, 2021, filed with the SEC on
December 10, 2021, under the caption “Risk Factors”, and in other
filings that we make from time to time with the SEC, including our
Annual Report on Form 10-K for the year ended January 31, 2022.
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.
Key Business Metrics
RPO. 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.
NDE. NDE, or net dollar expansion rate, is calculated by
dividing (i) subscription revenue in the trailing 12-month period
from those customers who were on our platform during the prior
12-month period by (ii) subscription revenue from the same
customers in the prior 12-month period.
Sprinklr, Inc.
Consolidated Balance Sheets
(1)
(in thousands, except per
share data)
(unaudited)
January 31,
2022
January 31,
2021
Assets
Current assets
Cash and cash equivalents
$
321,426
$
68,037
Marketable securities
210,983
212,652
Accounts receivable, net of allowance for
doubtful accounts of $2.7 million and
$3.2 million, respectively
163,681
116,278
Prepaid expenses and other current
assets
109,167
101,096
Total current assets
805,257
498,063
Property and equipment, net
14,705
9,011
Goodwill and other intangible assets
50,706
47,427
Other non-current assets
49,378
42,512
Total assets
$
920,046
$
597,013
Liabilities and stockholders’ equity
Liabilities
Current liabilities
Accounts payable
$
15,802
$
16,955
Accrued expenses and other current
liabilities
100,220
63,170
Deferred revenue
272,381
221,439
Total current liabilities
388,403
301,564
Long term debt
—
78,848
Deferred revenue less current portion
11,972
19,873
Deferred tax liability, long-term
1,101
869
Other liabilities, long-term
2,721
2,006
Total liabilities
404,197
403,160
Commitments and contingencies
Stockholders’ equity
Convertible preferred stock
—
424,992
Class A common stock
3
—
Class B common Stock
5
—
Common stock
—
4
Treasury stock
(23,831)
(23,831)
Additional paid-in capital
982,122
122,061
Accumulated other comprehensive (loss)
income
(820)
787
Accumulated deficit
(441,630)
(330,160)
Total stockholders’ equity
515,849
193,853
Total liabilities and stockholders’
equity
$
920,046
$
597,013
(1) Sprinklr identified immaterial
corrections related to the capitalization of costs to obtain
customer contracts which resulted in revisions to prior year
reported amounts within the consolidated balance sheets with an
increase to prepaid expenses and other current assets and other
non-current assets of $5.3 million and $5.8 million, respectively,
as well as a decrease in accumulated deficit of $11.1 million as of
January 31, 2021.
Sprinklr, Inc.
Consolidated Statements of
Operations (1)
(in thousands, except per
share data)
(unaudited)
Three Months Ended January
31,
Year Ended January 31,
2022
2021
2022
2021
Revenue:
Subscription
$
117,693
$
90,079
$
427,713
$
339,586
Professional services
17,974
14,033
64,681
47,344
Total revenue:
135,667
104,112
492,394
386,930
Costs of revenue:
Costs of subscription (2)
23,669
21,388
89,896
77,033
Costs of professional services (2)
16,136
11,715
57,655
45,049
Total costs of revenue
39,805
33,103
147,551
122,082
Gross profit
95,862
71,009
344,843
264,848
Operating expenses:
Research and development (2)
15,874
13,406
60,591
40,280
Sales and marketing (2)(3)
82,389
49,765
286,963
185,797
General and administrative (2)
21,396
16,112
84,759
64,348
Litigation settlement (4)
12,000
—
12,000
—
Total operating expenses
131,659
79,283
444,313
290,425
Operating loss
(35,797)
(8,274)
(99,470)
(25,577)
Other expense, net
(338)
(2,667)
(5,084)
(8,616)
Loss before provision for income taxes
(36,135)
(10,941)
(104,554)
(34,193)
Provision for income taxes
783
889
6,916
3,777
Net loss
(36,918)
(11,830)
(111,470)
(37,970)
Deemed dividend in relation to tender
offer
—
(600)
—
(600)
Net loss attributable to Sprinklr common
stockholders
$
(36,918)
$
(12,430)
$
(111,470)
$
(38,570)
Net loss per share attributable to Class A
and Class B common stockholders, basic and diluted
$
(0.14)
$
(0.12)
$
(0.57)
$
(0.42)
Weighted average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders, basic and diluted
255,920
95,148
195,020
90,378
(1) Sprinklr identified immaterial
corrections related to the capitalization of costs to obtain
customer contracts which resulted in revisions to prior year
reported amounts within the consolidated statements of operations
with a decrease in net loss of $3.2 million for the year ended
January 31, 2021.
(2) Includes stock-based compensation
expense, net of amounts capitalized, as follows:
Three Months Ended January
31,
Year Ended January 31,
2022
2021
2022
2021
(in thousands)
Costs of subscription
$
383
$
1,157
$
1,794
$
2,012
Costs of professional services
538
782
2,448
1,658
Research and development
1,501
1,894
6,417
4,804
Sales and marketing
5,967
5,982
19,929
14,976
General and administrative
3,789
2,541
19,543
21,619
Stock-based compensation expense, net of
amounts capitalized
$
12,178
$
12,356
$
50,131
$
45,069
(3) Includes amortization of
acquired intangible assets as follows:
Three Months Ended January
31,
Year Ended January 31,
2022
2021
2022
2021
(in thousands)
Sales and marketing
$
133
$
82
$
412
$
626
Amortization of acquired intangible
assets
$
133
$
82
$
412
$
626
(4) On February 25, 2022, we and Opal Labs
Inc. (“Opal”) agreed to settled all outstanding claims with respect
to Opal’s complaints alleging breach of contract and violation of
Oregon’s Uniform Trade Secrets Act, among other claims. The
settlement amount was recorded as a one-time operating expense
charge in fiscal year 2022.
Sprinklr, Inc.
Consolidated Statements of
Cash Flows (1)
(in thousands)
(unaudited)
Year ended January 31,
2022
2021
Cash flow from operating activities:
Net loss
$
(111,470)
$
(37,970)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
8,058
5,690
Bad debt expense
(186)
689
Stock-based compensation expense
50,131
43,883
Litigation settlement
12,000
—
Non-cash interest paid in kind and
discount amortization
3,266
5,523
Deferred income taxes
235
110
Other noncash items, net
(1,272)
(712)
Changes in operating assets and
liabilities:
Accounts receivable
(47,094)
(9,781)
Prepaid expenses and other current
assets
(8,220)
(28,709)
Other noncurrent assets
(6,764)
(7,082)
Accounts payable
(1,095)
6,077
Accrued expenses and other current
liabilities
25,510
12,286
Deferred revenue
43,404
17,511
Other liabilities
575
(204)
Net cash (used in) provided by operating
activities
(32,922)
7,311
Cash flow from investing activities:
Purchases of marketable securities
(267,826)
(212,973)
Sales of marketable securities
56,652
—
Maturities of marketable securities
211,555
—
Purchases of property and equipment
(6,148)
(2,701)
Capitalized internal-use software
(6,258)
(3,783)
Acquisitions, net of cash acquired
(3,625)
—
Net cash provided by (used in) investing
activities
(15,650)
(219,457)
Cash flow from financing activities:
Proceeds from issuance of common stock
upon initial public offering, net of underwriting discounts,
commissions and other offering costs
275,973
—
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
Repurchase of preferred stock
—
(12,416)
Deemed dividend on preferred stock
—
(600)
Proceeds from short-term borrowings
—
49,973
Repayments of short term borrowings
—
(49,973)
Payments of debt and equity issuance
costs
—
(475)
Repurchase of common stock
—
(5,874)
Proceeds from issuance of common stock
upon exercise of stock options
20,054
16,333
Proceeds from issuance of common stock
upon ESPP purchase
7,105
—
Net cash provided by financing
activities
303,132
269,784
Effect of exchange rate fluctuations on
cash and cash equivalents
(1,171)
(71)
Net change in cash and cash
equivalents
253,389
57,567
Cash and cash equivalents at beginning of
period
68,037
10,470
Cash and cash equivalents at end of
period
$
321,426
$
68,037
(1) Sprinklr identified immaterial
corrections related to the capitalization of costs to obtain
customer contracts which resulted in revisions to prior year
reported amounts within the consolidated statements of cash flows
with a decrease in net loss of $3.2 million for the year ended
January 31, 2021 as well as increases in the related changes in
operating assets and liabilities associated with prepaid expenses
and other current assets and other non-current assets of $0.8
million and $2.4 million, respectively.
Sprinklr, Inc.
Reconciliation of Non-GAAP
Measures
(in thousands)
(unaudited)
Three Months Ended January
31,
Year Ended January 31,
2022
2021
2022
2021
Non-GAAP gross profit:
GAAP gross profit
$
95,862
$
71,009
$
344,843
$
264,848
Stock-based compensation expense-related
charges (2)
921
1,939
4,355
3,670
Non-GAAP gross profit
$
96,783
$
72,948
$
349,198
$
268,518
Gross margin
71 %
68 %
70 %
68 %
Non-GAAP gross margin
71 %
70 %
71 %
69 %
Non-GAAP operating (loss) income:
(1)
GAAP operating loss
$
(35,797)
$
(8,274)
$
(99,470)
$
(25,577)
Stock-based compensation expense-related
charges (3)
12,180
12,356
51,552
45,069
Litigation settlement (4)
12,000
—
12,000
—
Amortization of acquired intangible
assets
133
82
412
626
Non-GAAP operating (loss) income
$
(11,484)
$
4,164
$
(35,506)
$
20,118
Operating margin
(26%)
(8%)
(20%)
(7%)
Non-GAAP operating margin
(8%)
4%
(7%)
5%
Non-GAAP net (loss) income and net
(loss) income per share: (1)
GAAP net loss:
$
(36,918)
$
(12,430)
$
(111,470)
$
(38,570)
Stock-based compensation expense-related
charges (3)
12,180
12,356
51,552
45,069
Litigation settlement (4)
12,000
—
12,000
—
Amortization of acquired intangible
assets
133
82
412
626
Non-GAAP net (loss) income
$
(12,605)
$
8
$
(47,506)
$
7,125
Less: amounts allocated to participating
securities
—
—
—
(3,884)
Non-GAAP net (loss) income attributable to
Class A and Class B common stockholders
$
(12,605)
$
8
$
(47,506)
$
3,241
Weighted-average shares outstanding used
in computing net (loss) income per share attributable to Class A
and Class B common stockholders - basic
255,920
95,148
195,020
90,378
Non-GAAP net (loss) income per common
share attributable to Class A and Class B common stockholders
$
(0.05)
$
0.00
$
(0.24)
$
0.04
Free cash flow:
Net cash (used in) provided by operating
activities
$
(14,981)
$
(8,462)
$
(32,922)
$
7,311
Purchase of property and equipment
(952)
(623)
(6,148)
(2,701)
Capitalized internal-use software
(2,108)
(1,280)
(6,258)
(3,783)
Free cash flow
$
(18,041)
$
(10,365)
$
(45,328)
$
827
(1) Sprinklr identified immaterial
corrections related to the capitalization of costs to obtain
customer contracts which resulted in revisions to prior year
reported amounts with decreases to the respective GAAP measures of
operating loss and net loss of $3.2 million for the year ended
January 31, 2021.
(2) Includes $0.1 million of employer
payroll tax related to stock-based compensation expense for the
year ended January 31, 2022.
(3) Includes $1.4 million of employer
payroll tax related to stock-based compensation expense for the
year ended January 31, 2022.
(4) On February 25, 2022, we and Opal
agreed to settled all outstanding claims with respect to Opal’s
complaints alleging breach of contract and violation of Oregon’s
Uniform Trade Secrets Act, among other claims. The settlement
amount was recorded as a one-time operating expense charge in
fiscal year 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220406005986/en/
Investor Relations: IR@sprinklr.com
Media Contact: Austin DeArman PR@sprinklr.com
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