Sprinklr (CXM) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 13% year-over-year to $196M, with subscription revenue up 12% to $177.4M and 138 customers contributing $1M+ in subscription revenue, up 20% year-over-year.

• Non-GAAP operating income was $20.4M (10% margin); GAAP net income was $10.6M, with free cash flow at $36.2M.

• Leadership changes include the appointment of Trac Pham as Co-CEO to strengthen operational execution.

• The company is undergoing a significant go-to-market transition, focusing on AI innovation and platform capabilities.

• Share repurchases reached 8.3M shares for $101.2M, with further buybacks authorized.

Financial highlights

• Q1 services revenue was $18.6M; subscription revenue-based net dollar expansion rate was 115%.

• Non-GAAP gross margin was 74% (subscription 82%, professional services 2%).

• Free cash flow was $36.2M (18% margin), up from $14.3M last year.

• Cash and equivalents: $610.1M, no debt.

• RPO at $922.5M (+30% YoY); CRPO at $570.4M (+19% YoY).

Outlook and guidance

• Q2 revenue guidance: $194M–$195M (9% YoY growth); subscription revenue $177.5M–$178.5M.

• FY25 revenue guidance: $779M–$781M (7% YoY growth); subscription revenue $714M–$716M.

• FY25 non-GAAP operating income expected at $104M–$105M (13% margin); non-GAAP EPS: $0.40–$0.41.

• Free cash flow for FY25 estimated at $60M.

• FY27 financial targets withdrawn due to macro uncertainty.