Sprinklr (CXM) Q1 Earnings: What To Expect

Customer experience software provider Sprinklr (NYSE:CXM) will be announcing earnings results tomorrow before market hours. Here’s what to look for.

Sprinklr beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $202.5 million, up 4.3% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Sprinklr a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sprinklr’s revenue to grow 3% year on year to $201.8 million, slowing from the 13% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprinklr has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Sprinklr’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. The Trade Desk delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 7%, and AppLovin reported revenues up 40.3%, topping estimates by 7.3%. The Trade Desk traded up 18.4% following the results while AppLovin was also up 11.9%.

Read our full analysis of The Trade Desk’s results here and AppLovin’s results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 7.9% on average over the last month. Sprinklr is up 6.7% during the same time and is heading into earnings with an average analyst price target of $10 (compared to the current share price of $8.24).

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