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Jul 31, 2024

Sprinklr Q2 2025 Earnings Report

Sprinklr's Q2 fiscal 2025 revenue increased, demonstrating growth in subscription services and customer base, but profitability faced challenges.

Key Takeaways

Sprinklr reported Q2 fiscal 2025 results with total revenue of $197.2 million, an 11% increase year-over-year, and subscription revenue of $177.9 million, up 9% year-over-year. The company achieved its 7th consecutive quarter of free cash flow, while also facing market challenges that impacted profitability.

Total revenue reached $197.2 million, up 11% year-over-year.

Subscription revenue totaled $177.9 million, reflecting a 9% year-over-year increase.

Net cash from operating activities was $21.3 million, with a free cash flow of $16.5 million.

The company recorded a $10.1 million credit loss charge in Q2.

Total Revenue
$197M
Previous year: $178M
+10.5%
EPS
$0.06
Previous year: $0.09
-33.3%
Customers with >$1M Revenue
145
Previous year: 120
+20.8%
Gross Profit
$143M
Previous year: $135M
+5.8%
Cash and Equivalents
$119M
Previous year: $148M
-19.3%
Free Cash Flow
$16.5M
Previous year: $8.73M
+89.4%
Total Assets
$984M
Previous year: $1.07B
-8.3%

Sprinklr

Sprinklr

Sprinklr Revenue by Segment

Forward Guidance

Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2024 and for the full fiscal year ending January 31, 2025:

Positive Outlook

  • Subscription revenue between $177.5 million and $178.5 million for Q3 2025.
  • Total revenue between $196 million and $197 million for Q3 2025.
  • Non-GAAP operating income between $19 million and $20 million for Q3 2025.
  • Non-GAAP net income per share of approximately $0.08 assuming 266 million diluted weighted-average shares outstanding for Q3 2025.
  • Subscription revenue between $710.5 million and $712.5 million for FY 2025.

Challenges Ahead

  • Total revenue between $785 million and $787 million for FY 2025.
  • Non-GAAP operating income between $80.5 million and $81.5 million for FY 2025.
  • Non-GAAP net income per share between $0.32 and $0.33, assuming 270 million diluted weighted-average shares outstanding for FY 2025.
  • Unstable market and economic conditions could impact future results.
  • Fluctuations in inflation rates and higher interest rates may pose challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income