CXM Stock Overview
Sprinklr, Inc. provides enterprise cloud software products worldwide.
Sprinklr, Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$12.72|
|52 Week High||US$20.30|
|52 Week Low||US$9.41|
|1 Month Change||20.80%|
|3 Month Change||17.56%|
|1 Year Change||-33.37%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-27.73%|
Recent News & Updates
Sprinklr Grows Revenue But Needs Operating Breakeven To Soar
Sprinklr went public in June 2021, raising approximately $266 million in an IPO. The firm provides a suite of customer experience management software tools to businesses worldwide. CXM has produced revenue growth and strong retention results, but high operating losses, which have been punished by the current stock market. If management makes a credible move toward operating breakeven and the cost of capital growth ameliorates, the stock could rise. Until either or both of those conditions are present, I'm on Hold for CXM. A Quick Take On Sprinklr Sprinklr (CXM) went public in June 2021, raising approximately $266 million in gross proceeds from an IPO that priced at $16.00 per share. The firm sells customer experience management software via a unified suite of applications. While CXM looks to be currently undervalued compared to its SaaS peers, at least on a revenue multiple basis, management needs to produce results in reducing operating losses. Until it can prove its ability to make a meaningful move toward operating breakeven, I’m on Hold for CXM. Sprinklr Overview New York, NY-based Sprinklr was founded to develop a full-featured suite of software to enable enterprises to manage various aspects of their operations that touch customers. Management is headed by founder Chairman and CEO Ragy Thomas, who previously held various roles at Epsilon, a division of Alliance Data Systems. The company’s primary offerings include: Research Customer Care Marketing & Advertising Sales & Engagement AI Engine The firm pursues new client relationships with medium and large enterprises via direct sales and marketing approach and through partners and agencies. Sprinklr’s Market & Competition According to a 2018 market research report by ResearchAndMarkets, the global customer experience management market is projected to grow to $21.3 billion by 2024. This represents a forecast CAGR of 22% during the period between 2018 and 2024. The main factor driving market growth is the increasing need for personalized customer experience. Also, the growth in the use of machine learning promises to provide greater software value to enterprises by offering recommendations and vertical industry focus. Major competitive or other industry participants include: Adobe Avaya CA Technologies IBM Medallia Aon Hewitt Towers Watson SurveyMonkey Qualtrics International Sprinklr’s Recent Financial Performance Total revenue by quarter has risen steadily in the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has followed approximately the same trajectory as that of total revenue: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have remained elevated in recent reporting periods: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has remained heavily negative, with no discernible move toward operating breakeven: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have remained negative, as the chart shows below: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, CXM’s stock price has dropped 43.1% vs. the U.S. S&P 500 index’s fall of around 5.8%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For Sprinklr Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $2,460,000,000 Market Capitalization $2,980,000,000 Enterprise Value / Sales [TTM] 4.68 Revenue Growth Rate [TTM] 30.00% Operating Cash Flow [TTM] -$25,430,000 Earnings Per Share (Fully Diluted) -$0.54 (Source - Seeking Alpha) As a reference, a relevant partial public comparable would be Qualtrics International (XM); shown below is a comparison of their primary valuation metrics: Metric Qualtrics Int'l Sprinklr Variance Enterprise Value / Sales [TTM] 5.33 4.68 -12.2% Operating Cash Flow [TTM] $37,240,000 -$25,430,000 -168.3% Revenue Growth Rate 43.1% 30.0% -30.4% (Source - Seeking Alpha) A full comparison of the two companies’ performance metrics may be viewed here. The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. CXM’s most recent GAAP Rule of 40 calculation was 12% as of FQ1 2023, so the firm needs improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 30% GAAP EBITDA % -18% Total 12% (Source - Seeking Alpha) Commentary On Sprinklr In its last earnings call (Source - Seeking Alpha), covering FQ1 2023’s results, management highlighted the growth of customer interaction activity for clients continuing a transition to live chat and messaging. Customers use this increasingly online medium to increase revenue, reduce costs and mitigate risks. The firm recently launched a conversation insights function, which uses AI to ‘surface brand insights that otherwise may never have been discovered,’ from online conversations, enabling corporate communications to gain online insights to improve their future messaging efforts. In its marketing and advertising suite, CXM launched an AI-enhanced capability to build differing versions of content ‘without investing additional production dollars.’
|CXM||US Software||US Market|
Return vs Industry: CXM underperformed the US Software industry which returned -14.7% over the past year.
Return vs Market: CXM underperformed the US Market which returned -9.6% over the past year.
|CXM Average Weekly Movement||9.2%|
|Software Industry Average Movement||10.1%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: CXM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: CXM's weekly volatility (9%) has been stable over the past year.
About the Company
Sprinklr, Inc. provides enterprise cloud software products worldwide. The company offers Unified Customer Experience Management platform, a purpose-built to analyze unstructured customer experience data, built to scale across future and modern channels, and integrates all stages of the customer journey. Its products include Modern Research that enables its customers to listen, learn from, and act on insights gleaned from modern channels; Modern Care that enables brands to listen to, route, resolve and analyze customer service issues across modern and traditional channels; Modern Marketing and Advertising enables global brands to plan, create, publish, optimize, and analyze their organic/owned marketing content and paid advertising campaigns across modern channels; and Social Engagement and Sales allows customers listen to, triage, engage, and analyze conversations across modern channels.
Sprinklr, Inc. Fundamentals Summary
|CXM fundamental statistics|
Is CXM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CXM income statement (TTM)|
|Cost of Revenue||US$157.56m|
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.47|
|Net Profit Margin||-23.23%|
How did CXM perform over the long term?See historical performance and comparison