cxm-20240430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40528

Sprinklr, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or other Jurisdiction of

Incorporation or organization)

441 9th Avenue, 12th Floor

New York, NY

(Address of principal executive offices)

45-4771485

(IRS Employer

Identification No.)

10001

(Zip Code)

Registrant’s telephone number, including area code: (917) 933-7800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock, par value $0.00003 per share

CXM

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 31, 2024, the registrant had 148,652,353 shares of Class A common stock and 116,574,592 shares of Class B common stock, each with a par value of $0.00003 per share, outstanding.

TABLE OF CONTENTS


Special Note About Forward-Looking Statements		3
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 5.	Other Information	61
Item 6.	Exhibits	62
Signatures

WHERE YOU CAN FIND MORE INFORMATION

Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use Sprinklr’s blog and the following social media channels as a means of disclosing information about the Company, our products, our planned financials and other announcements and attendance at upcoming investor and industry conferences, and other matters. This is in compliance with our disclosure obligations under Regulation FD:

•Sprinklr Company Blog (http://sprinklr.com/blog)

•Sprinklr LinkedIn Page (http://www.linkedin.com/company/sprinklr)

•Sprinklr X (formerly known as Twitter) Account (https:/x.com/sprinklr)

•Sprinklr Facebook Page (https://www.facebook.com/sprinklr/)

•Sprinklr Instagram Page (https://www.instagram.com/sprinklr)

In addition, investors and others can view Sprinklr videos on YouTube (https://www.YouTube.com/c/sprinklr).

Information posted through these social media channels may be deemed material. Accordingly, in addition to reviewing our press releases, SEC filings, public conference calls and webcasts, investors should monitor Sprinklr’s blog and its other social media channels. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. The channel list on how to connect with us may be updated from time to time and is available on https://www.sprinklr.com and our investor relations website.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements.

These forward-looking statements include, but are not limited to, statements concerning the following:

•our expectations regarding our revenue, expenses and other operating results;

•our ability to acquire new customers and successfully engage new and existing customers;

•our ability to achieve and maintain our profitability;

•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

•the costs and success of our marketing efforts and our ability to promote our brand;

•our growth strategies for our Unified Customer Experience Management (“Unified-CXM”) platform;

•our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

•our ability to effectively manage our growth, including any international expansion;

•our ability to obtain, maintain, protect, defend or enforce our intellectual property or other proprietary rights and any costs associated therewith;

•the effects of global economic uncertainty, including as a result of increases in inflation rates, higher interest rates, recent bank closures, and the Russia-Ukraine and Israel-Hamas wars (including an escalation or geographical expansion of these conflicts) on our business, financial condition and share price;

•our ability to compete effectively with existing competitors and new market entrants; and

•the growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-Q. And, while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Form 10-Q to reflect events or circumstances after the date of this Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Unless the context otherwise requires, the terms “Sprinklr,” “the Company,” “we,” “our,” “us” or similar references in this Form 10-Q refer to Sprinklr, Inc. and its subsidiaries.

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements.

SPRINKLR, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)


	April 30, 2024		January 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	126,815	$	164,024
Marketable securities	483,264		498,531
Accounts receivable, net of allowance of $6.2 million and $5.3 million, respectively	187,772		267,731
Prepaid expenses and other current assets	85,969		70,690
Total current assets	883,820		1,000,976
Property and equipment, net	32,758		32,176
Goodwill and other intangible assets	50,086		50,145
Operating lease right-of-use assets	48,604		31,058
Other non-current assets	108,840		108,755
Total assets	$	1,124,108	$	1,223,110

Liabilities and stockholders’ equity
Liabilities
Current liabilities:
Accounts payable	$	19,163	$	34,691
Accrued expenses and other current liabilities	64,271		93,187
Operating lease liabilities, current	6,661		5,730
Deferred revenue	370,229		374,552
Total current liabilities	460,324		508,160
Deferred revenue, non-current	710		506
Deferred tax liability, non-current	1,474		1,474
Operating lease liabilities, non-current	44,932		27,562
Other liabilities, non-current	5,737		5,704
Total liabilities	513,177		543,406
Commitments and contingencies (Note 8)
Stockholders’ equity:
Class A common stock, $0.00003 par value, 2,000,000,000 shares authorized; 151,438,417 and 151,136,870 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively	4		4
Class B common stock, $0.00003 par value, 310,000,000 shares authorized; 116,675,616 and 122,128,581 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively	4		4
Treasury stock, at cost, 14,130,784 and 14,130,784 shares as of April 30, 2024 and January 31, 2024, respectively	(23,831)		(23,831)
Additional paid-in capital	1,205,948		1,182,150
Accumulated other comprehensive loss	(5,224)		(3,836)
Accumulated deficit	(565,970)		(474,787)
Total stockholders’ equity	610,931		679,704
Total liabilities and stockholders’ equity	$	1,124,108	$	1,223,110

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)


	Three Months Ended April 30,
		2024		2023
Revenue:
Subscription		$	177,363	$	157,665
Professional services		18,595		15,698
Total revenue		195,958		173,363
Costs of revenue:
Costs of subscription		32,570		27,476
Costs of professional services		18,555		14,461
Total costs of revenue		51,125		41,937
Gross profit		144,833		131,426
Operating expense:
Research and development		22,539		20,761
Sales and marketing		87,484		89,202
General and administrative		29,101		24,656

Total operating expense		139,124		134,619
Operating income (loss)		5,709		(3,193)
Other income, net		7,500		4,759
Income before provision (benefit) for income taxes		13,209		1,566
Provision (benefit) for income taxes		2,575		(1,242)
Net income		$	10,634	$	2,808
Net income per share, basic		$	0.04	$	0.01
Weighted average shares used in computing net income per share, basic		271,664		265,584
Net income per share, diluted		$	0.04	$	0.01
Weighted average shares used in computing net income per share, diluted		284,032		281,344

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)


	Three Months Ended April 30,
		2024		2023
Net income		$	10,634	$	2,808
Foreign currency translation adjustments		(594)		195
Unrealized (losses) gains on investments, net of tax		(794)		95
Total comprehensive income, net of tax		$	9,246	$	3,098

See accompanying notes to the unaudited condensed consolidated financial statements

SPRINKLR, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

(unaudited)


	Class A and Class B Common Stock			Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Loss		Accumulated Deficit	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance at January 31, 2024	273,265	$	8	$	1,182,150	14,131	$	(23,831)	$	(3,836)

SEC Form 10-Q filed by Sprinklr Inc.