Shares in Sprinklr surged Thursday on January-quarter earnings and revenue that topped estimates. The social media marketing specialist's guidance for CXM stock also came in above expectations.
The software maker, which uses artificial intelligence tools, reported earnings after the market close on Wednesday. Sprinklr earnings for its fourth quarter were 6 cents a share, as the company turned profitable compared with the year before. Revenue climbed 22% to $165.3 million, the New York-based software maker said.
Analysts expected Sprinklr earnings of 2 cents a share on revenue of $162.8 million. A year earlier, Sprinklr lost 5 cents per share on revenue of $135.7 million.
CXM stock popped 17.6% to close at 12.79 on the stock market today. In its earnings call with analysts, Sprinklr highlighted how generative AI tools from startup OpenAI will improve its platform.
"There's a massive potential and a big market transition happening with generative AI and we see the potential of how we can work together to truly revolutionize front office for our mutual customers," said Chief Executive Ragy Thomas.
"Sprinklr reported a solid Q4, marked by a strong upside across the board, including revenue, calculated billings, operating margin, and free cash flow," JPMorgan analyst Pinjalim Bora said in a note to clients. "Subscription revenue came in 2% ahead of consensus, while services revenue landed in-line, while billings growth of 25% landed 11 points ahead of the street expectations."
Outlook For CXM Stock Tops Views
Sprinklr's 2023 fiscal year ended Jan. 31.
For fiscal 2024, Sprinklr predicted profit of 14 cents a share on revenue of $712 million at the midpoint of its outlook. Analysts had predicted full-year profit of 10 cents a share on revenue of $710.4 million.
Meanwhile, backed by private equity firm Hellman & Friedman, Sprinklr in June 2021 launched an initial public offering that raised $266 million.
Sprinklr helps companies manage their digital identities — in advertising, marketing, research and on social media. Sprinklr uses artificial intelligence tools in its cloud-based Customer Experience Management platform. Also, Sprinklr provides a self-serve ad-buying platform and measurement tools.
Workforce Reductions To Help Raise Margins
In February, Sprinklr announced a 4% workforce reduction. The move was expected to raise fiscal 2024 operating margins.
Heading into the earnings report, Sprinklr stock owned a Relative Strength Rating of 89 out of a possible 99, according to IBD Stock Checkup. In addition, CXM stock had gained 32% in 2022.
Also, Sprinklr customers include Microsoft and Roche. HubSpot is a rival.
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