Sprinklr, Inc. has recently released its 10-Q report, providing a detailed insight into the company's financial condition and performance. Sprinklr, Inc. is a global enterprise cloud software company that operates a Unified Customer Experience Management platform, allowing customer-facing teams to collaborate across internal silos, communicate across digital channels, and leverage a suite of capabilities to deliver customer experiences. The company offers products such as Sprinklr Service, Sprinklr Social, Sprinklr Insights, and Sprinklr Marketing, along with professional, managed, training, and consultancy services. As of July 31, 2024, Sprinklr had 145 large customers, compared to 120 as of July 31, 2023.
The 10-Q report delves into Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations. The report discusses key business metrics such as Remaining Performance Obligation (RPO) and current RPO (cRPO). As of July 31, 2024, the RPO expected to be recognized as revenue was $887.1 million, and the cRPO was $557.8 million. Additionally, the report highlights the net dollar expansion rate (NDE), which was 110.8% on a trailing 12-month basis ending July 31, 2024, compared to 120.0% for the same period in 2023. The decrease was attributed to a combination of elevated churn exacerbated by the current macroeconomic environment.
The report also discusses the components of the company's results of operations. For the three months ended July 31, 2024, Sprinklr reported a total revenue of $197.2 million, with subscription revenue accounting for $177.9 million and professional services revenue at $19.3 million. The costs of revenue amounted to $54.3 million, resulting in a gross profit of $142.9 million. The operating expenses, including research and development, sales and marketing, and general and administrative expenses, totaled $143.0 million. The company reported a net income of $1.8 million for the three months ended July 31, 2024.
The 10-Q report also addresses macroeconomic considerations, stating that unfavorable conditions in the economy may negatively affect the growth of the business and its results of operations. The report mentions that historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact Sprinklr's business and its customers' businesses.
The market has reacted to these announcements by moving the company's shares -0.2% to a price of $8.59. Check out the company's full 10-Q submission here.
