NEW YORK - Sprinklr (NYSE:CXM), a leading unified customer experience management platform, delivered a robust fourth quarter, surpassing Wall Street's expectations with its earnings and revenue results. The company reported adjusted earnings per share (EPS) of $0.13, which was $0.04 higher than the analyst estimate of $0.09. Revenue also exceeded forecasts, coming in at $194.2 million against the consensus estimate of $188.75 million.
The company's performance in the fourth quarter, marked by a 17% increase in total revenue year-over-year (YoY), was driven by a strong uptick in subscription revenue, which saw a 19% rise compared to the same quarter last year. This growth is a testament to the company's expanding customer base, which now includes 126 $1 million customers, showing a 17% increase YoY.
Sprinklr's guidance for the first quarter of fiscal year 2025 projects EPS to be around $0.07, slightly below the consensus estimate of $0.09. However, the revenue forecast for Q1 2025 is set between $194 million and $195 million, which is above the analyst expectation of $193.3 million. For the full fiscal year 2025, the company anticipates adjusted EPS to be between $0.38 and $0.39, aligning with the consensus of $0.39, and projects revenue to range from $804.5 million to $805.5 million, which is higher than the consensus estimate of $802.1 million.
The positive earnings news and forward-looking guidance have resonated well with investors, as reflected in the stock's 2.31% rise. Ragy Thomas, Founder and CEO of Sprinklr, expressed confidence in the company's direction, stating, "We are pleased with Sprinklr's fourth quarter performance and overall success in FY 24. Our vision is clear: to unify customer-facing teams on an AI-powered platform. We're strengthening our foundation and recruiting top-tier leaders to fuel our next phase of growth."
The company's financial health is further evidenced by the net cash provided by operating activities, which amounted to $17.3 million, and free cash flow of $12.3 million in the fourth quarter. Additionally, the board's authorization of an incremental $100 million to the existing stock buyback program in March 2024 signals a strong commitment to returning value to shareholders.
As Sprinklr continues to capitalize on the growing demand for customer experience management solutions, its strategic investments and ability to attract large enterprise customers position the company to maintain its momentum in the coming fiscal year.
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