Sprinklr (CXM) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 13% year-over-year to $196 million, driven by subscription revenue of $177.4 million and professional services growth.

• Non-GAAP operating income was $20.4 million (10% margin); GAAP net income was $10.6 million, up from $2.8 million last year.

• Free cash flow reached $36.2 million, up from $14.3 million a year ago.

• 138 customers contributed $1M+ in subscription revenue over the past 12 months, up 20% year-over-year.

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

Financial highlights

• Subscription revenue was $177.4 million, up 12% year-over-year; services revenue was $18.6 million.

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

• Free cash flow margin was 18% in Q1.

• Cash and equivalents totaled $610.1 million with no debt.

• Calculated billings were $191.8 million, up 12% year-over-year.

Outlook and guidance

• Q2 FY25 revenue guidance: $194–$195 million (9% growth), subscription revenue $177.5–$178.5 million.

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

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

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

• FY27 financial targets withdrawn due to macro uncertainty.