Sprinklr, Inc. (NYSE:CXM) Co-Chief Executive Officer Thomas Ragy has sold a portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which occurred on September 16 and 17, involved the sale of a combined total of 16,165 shares of Class A common stock for an aggregate value of over $126,604.
On the first day of the reported transactions, Ragy sold 12,902 shares at an average price of $7.83. The following day, an additional 3,263 shares were sold at an average price of $7.84. The sales took place at prices ranging from $7.82 to $7.895, as detailed in the footnotes of the filing. These sales were conducted to cover statutory tax withholding obligations related to the vesting of restricted stock units, a common practice under equity incentive plans which mandates a "sell to cover" transaction.
After these transactions, Ragy's remaining stake in Sprinklr stands at 1,047,919 shares of Class A common stock. The company, known for its customer experience management platform, is headquartered in New York and operates within the prepackaged software industry.
Sprinklr has not made any public statements regarding these transactions, which are part of the routine financial disclosures required of company executives. The sales represent a small fraction of Ragy's overall holdings in the company and do not necessarily indicate a change in the executive's view of the company's potential or direction.
In other recent news, Sprinklr Inc. reported an 11% year-over-year increase in total revenue to $197.2 million for the second quarter of fiscal year 2025. The company's subscription revenue also saw a 9% growth, reaching $177.9 million. However, the operating margins and per-share earnings fell short of projections, reported at 8% and $0.06, respectively. Following these developments, KeyBanc Capital Markets and Rosenblatt have revised their outlook on Sprinklr, reducing their price targets while maintaining an Overweight and Buy rating, respectively.
Sprinklr's total and current bookings showed a sharp decline, with total bookings down 39.7% and current bookings falling 9.7%. Despite these challenges, the company continues to attract new customers including UBS, Ford (NYSE:F), T-Mobile, Grupo Bimbo, and Planet Fitness (NYSE:PLNT). For the third quarter, Sprinklr projects total revenue to be between $196 million and $197 million, with subscription revenue estimated at $177.5 million to $178.5 million. The company has also updated its revenue guidance for the fiscal year 2025, primarily due to an anticipated increase in Professional Services. However, a downward adjustment in subscription services revenue tempers this positive outlook.
InvestingPro Insights
In light of the recent transactions by Co-Chief Executive Officer Thomas Ragy, investors may find it pertinent to consider the current financial landscape of Sprinklr, Inc. (NYSE:CXM) as depicted by real-time data and insights from InvestingPro. With a market capitalization of approximately $1.98 billion and a P/E ratio standing at 41.91, Sprinklr presents an interesting case for potential investors. The company's revenue growth has been robust, with a 14.72% increase over the last twelve months as of Q2 2025, reflecting a positive trajectory in its business operations.
Furthermore, an InvestingPro Tip highlights that Sprinklr has been executing an aggressive share buyback program, a move that often signals management's confidence in the company's future prospects. Additionally, Sprinklr holds more cash than debt on its balance sheet, which could provide a cushion against market volatility and enable further strategic investments or share buybacks. Notably, analysts have revised their earnings expectations downwards for the upcoming period, and the stock has experienced a significant decline over the last six months, with a price total return of -39.69%.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips on Sprinklr, including insights into the company's valuation multiples and profitability forecasts. Currently, there are 10 more InvestingPro Tips available, which can be accessed for a deeper dive into the company's financial health and market position. Interested readers can find these valuable tips at InvestingPro's dedicated Sprinklr page.
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