Sprinklr stock falls 8% despite solid Q2 results and raised guidance

Published 04/09/2025, 12:46
Sprinklr stock falls 8% despite solid Q2 results and raised guidance

Investing.com - Sprinklr Inc (NYSE:CXM) shares fell approximately 8% following its second-quarter earnings report, despite exceeding revenue expectations and raising its full-year guidance. According to InvestingPro data, the stock has declined over 11% in the past week, though analysis suggests the company is currently undervalued.

The customer experience management platform reported second-quarter revenue of $212 million, representing 8% year-over-year growth and surpassing both company guidance and analyst consensus estimates. Subscription revenue grew 6% year-over-year while professional services revenue increased by 22%. The company maintains strong financial health, earning a "GREAT" rating from InvestingPro’s comprehensive analysis, with 8 additional ProTips available to subscribers.

Sprinklr maintained an 18% operating margin in the quarter, with free cash flow and overall cash generation exceeding expectations. The company also reported an increase in customers contributing over $1 million in annual revenue. Notably, Sprinklr holds more cash than debt on its balance sheet, with a healthy current ratio of 1.55 and a gross profit margin of nearly 70%.

The company announced executive changes, including the addition of Scott Millard as Chief Revenue Officer and the departure of CFO Manish Sarin, with CEO Rory Read stepping in as interim CFO.

Rosenblatt Securities reiterated a Buy rating on Sprinklr with a $12.00 price target, suggesting the stock decline reflects market concerns about executive transitions over the past nine months and persistent customer churn, despite improvements in large customer metrics.

In other recent news, Sprinklr Inc. reported stronger-than-expected earnings for the second quarter of 2025. The company achieved an earnings per share (EPS) of $0.13, surpassing the forecasted $0.1002. Revenue also exceeded expectations, reaching $212 million compared to the anticipated $205.4 million. Despite these positive financial results, there are concerns among investors regarding the company’s future growth prospects and strategic changes. The earnings report highlights Sprinklr’s ability to perform above market predictions, yet the market’s reaction indicates a cautious outlook. Analysts have not provided any upgrades or downgrades following the earnings release. These recent developments indicate a complex scenario where strong financial performance is met with market skepticism.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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