Sprinklr (CXM) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 11% year-over-year to $197.2M, with subscription revenue up 9% to $177.9M.

• 145 customers contributed $1M+ in subscription revenue over the past 12 months, up 21% year-over-year.

• Non-GAAP operating income was $15.2M (8% margin), including a $10.1M credit loss charge; excluding this, operating income would have been $25.3M (13% margin).

• Free cash flow reached $16.5M (8% margin), and the company ended Q2 with $468.5M in cash and no debt.

• Completed a $300M share buyback, repurchasing over 25M shares in the first half of FY25.

Financial highlights

• Subscription revenue was $177.9M (up 9% YoY); professional services revenue was $19.3M (up 29% YoY).

• Non-GAAP subscription gross margin was 81%; professional services gross margin was -1%; total non-GAAP gross margin was 73%.

• Calculated billings for Q2 were $192.8M, up 8% YoY; last twelve months billings reached $816.8M.

• RPO was $887.1M (up 10% YoY); CRPO was $557.8M (up 9% YoY).

• Cash, cash equivalents, and marketable securities totaled $468.5M as of July 31, 2024.

Outlook and guidance

• Q3 FY25 guidance: total revenue $196M–$197M (up 5% YoY), subscription revenue $177.5M–$178.5M (up 4% YoY), non-GAAP operating income $19M–$20M, non-GAAP EPS ~$0.08.

• Full-year FY25 guidance: total revenue $785M–$787M (up 7% YoY), subscription revenue $710.5M–$712.5M (up 6% YoY), non-GAAP operating income $80.5M–$81.5M, non-GAAP EPS $0.32–$0.33.

• FY25 free cash flow estimated at $55M.

• Q3 billings expected to decline ~10% YoY, with Q4 reacceleration anticipated.