Sprinklr (CXM) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.06
• Revenue Growth: 8.74%
• EPS Growth: 150.66%
• Country: US
• Employees: 3,589
• Sector: Technology
• Sector Strength: 49
• Industry: Software - Application
• EPS (TTM): 0.45
• Shares Outstanding: 139,788,240
• 10 Day Avg. Volume: 1,815,487
• 30 Day Avg. Volume: 2,150,748
• PEG Ratio: 0.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.80
• Price to Cash Flow (P/CF): 59.90
• P/FCF Ratio: 112.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.61
• Price Target Upside: 39.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

Sprinklr is well-positioned with strong financial performance and stable technical indicators. However, challenges identified in the earnings call and modest valuation metrics suggest a cautious approach. Strategic leadership changes and cost management improvements are critical for future growth.

Positive Factors

Acquisition Potential

Sprinklr could be an attractive acquisition target for a larger vendor like Microsoft, Salesforce, SAP, Oracle, or NICE Systems.

Financial Performance

Sprinklr's fourth quarter was better than expected as subscription revenue grew 2.9% and beat the midpoint of guidance of 2.0%.

Operational Improvements

Sprinklr's Q4 print showed success on Phase 1 of the business transformation - driving operational improvement.

Negative Factors

Growth Challenges

Challenges such as elevated churn, longer sales cycles, and missed renewals have contributed to growth deceleration over the past several quarters.

Macroeconomic Environment

The macro environment is classified as 'a bit unpredictable and a bit choppy' by the CEO.

Workforce Reduction

The firm is laying off 15% of the workforce, indicating a need to realign costs with current business conditions.

Sprinklr Business Overview & Revenue Model

Company Description

Sprinklr is a leading enterprise software company specializing in customer experience management (CXM) solutions. The company operates in the technology sector, providing a unified platform that helps businesses manage customer interactions across various digital channels, including social media, messaging, and email. Sprinklr's core services include social media management, advertising, marketing, research, and customer care, enabling organizations to enhance their customer engagement and drive business growth.

How the Company Makes Money

Sprinklr makes money through a subscription-based revenue model by offering its cloud-based software platform to enterprises. Customers pay recurring fees for access to Sprinklr's suite of tools, which are designed to improve customer experience management across multiple digital touchpoints. The company generates revenue through its various product offerings, which include social engagement and listening, customer care, and marketing and advertising solutions. Additionally, Sprinklr may earn revenue from professional services such as consulting, implementation, and training to help clients maximize the value of their investment in Sprinklr's platform. Key revenue streams are driven by customer acquisition and retention, as well as upselling additional services and features to existing clients. Strategic partnerships and integrations with other technology platforms may also contribute to Sprinklr's earnings by expanding its reach and enhancing its service offerings.

Sprinklr Financial Statement Overview

Summary

Sprinklr demonstrates strong financial performance with significant revenue and net income growth, a stable balance sheet with low financial leverage, and robust cash generation. However, there is room for improvement in cost management and liquidity.

Income Statement

Sprinklr's income statement reveals a strong financial trajectory with consistent revenue growth, highlighted by a significant increase from $324M in 2020 to $796M in 2025. The company has achieved a positive net income of $121M in 2025, demonstrating improved profitability. Gross Profit Margin remains healthy, showcasing operational efficiency. However, the EBIT margin indicates potential for further cost optimization.

Balance Sheet

The balance sheet shows a solid foundation with positive stockholders' equity of $612M and a manageable total debt of $48M in 2025. The Debt-to-Equity ratio is low, indicating low financial leverage, which reduces financial risk. The equity ratio suggests a balanced approach to financing. However, the decline in cash and short-term investments suggests careful liquidity management is needed.

Cash Flow

Sprinklr's cash flow statement indicates robust cash generation with operating cash flow at $77M and free cash flow showing consistent growth to $71M in 2025. The company has improved its free cash flow conversion, reducing reliance on external financing. However, the volatile investing and financing cash flows suggest a focus on strategic investments and capital structure adjustments.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
796.39M	732.36M	618.19M	492.39M	386.93M
	Gross Profit
574.32M	552.96M	454.46M	344.84M	264.85M
	EBIT
23.97M	33.95M	-51.22M	-87.47M	-28.79M
	EBITDA
23.97M	49.41M	-39.17M	-82.84M	-19.89M
	Net Income Common Stockholders
121.61M	51.40M	-55.74M	-111.47M	-41.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
483.46M	662.55M	578.63M	532.41M	280.69M
	Total Assets
1.18B	1.22B	1.02B	920.05M	585.89M
	Total Debt
48.70M	33.29M	16.77M	0.00	78.85M
	Net Debt
-96.56M	-130.73M	-171.62M	-321.43M	10.81M
	Total Liabilities
572.14M	543.41M	475.66M	404.20M	403.16M
	Stockholders Equity
612.06M	679.70M	549.33M	515.85M	182.73M
Cash Flow		Free Cash Flow
71.79M	51.14M	10.21M	-45.33M	827.00K
	Operating Cash Flow
77.59M	71.47M	26.66M	-32.92M	7.31M
	Investing Cash Flow
154.13M	-110.57M	-193.49M	-15.65M	-219.46M
	Financing Cash Flow
-248.16M	24.09M	34.97M	303.13M	269.78M

Sprinklr Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXM, the sentiment is Negative. The current price of 7.63 is below the 20-day moving average (MA) of 8.26, below the 50-day MA of 8.58, and below the 200-day MA of 8.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CXM.

Sprinklr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	75 Outperform	$2.02B	16.81	18.83%	―	8.74%	150.66%
ZI	66 Neutral	$2.90B	93.56	1.53%	―	-2.03%	-68.59%
SPT	64 Neutral	$1.16B	―	-39.88%	―	21.66%	8.66%
DSP	62 Neutral	$836.80M	382.06	3.87%	―	29.74%	―
JAMF	61 Neutral	$1.43B	―	-9.55%	―	11.92%	39.34%
RNG	60 Neutral	$2.09B	―	16.58%	―	8.99%	63.84%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%

Sprinklr Corporate Events

Sprinklr Expands Board with Key Leadership Appointments

On January 29, 2025, Sprinklr announced the expansion of its Board of Directors with the appointments of Jan R. Hauser and Stephen M. Ward, Jr. Hauser, a prominent finance leader, will join the Audit Committee and later succeed Ed Gillis as its Chair, while Ward, a former CEO of Lenovo, will be part of the Compensation Committee. Ed Gillis will resign from his position as Chair of the Audit Committee on March 31, 2025, and from the Board on June 12, 2025, after ten years of service. These strategic appointments are expected to bolster Sprinklr’s leadership and support its growth and innovation in the AI-powered customer experience management sector.

Sprinklr Announces Key Leadership Changes and Appointments

Sprinklr announced the transition of Diane Adams from her role as Chief Culture and Talent Officer to an advisory position, effective January 13, 2025, with her advisory role continuing until February 14, 2025. This transition is part of an agreement that includes severance benefits and stock option vesting. Concurrently, Sprinklr appointed Joy Corso as Chief Administrative Officer, a strategic decision aimed at strengthening market position, customer engagement, and advancing the company’s growth, leveraging her extensive experience in the B2B tech industry.