What To Expect From Sprinklr's (CXM) Q1 Earnings

Customer experience software provider Sprinklr (NYSE:CXM) will be reporting results tomorrow after market close. Here's what to expect.

Sprinklr beat analysts' revenue expectations by 2.9% last quarter, reporting revenues of $194.2 million, up 17.5% year on year. It was a solid quarter for the company, with an impressive beat of analysts' billings estimates and in-line revenue guidance for the next quarter. It added 3 enterprise customers paying more than $1m annually to reach a total of 126.

Is Sprinklr a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Sprinklr's revenue to grow 12.1% year on year to $194.4 million, slowing from the 19.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprinklr has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.4% on average.

Looking at Sprinklr's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 47.9%, beating analysts' expectations by 8.6%, and PubMatic reported revenues up 20.4%, topping estimates by 7.3%. AppLovin traded up 14.4% following the results while PubMatic was down 6.1%.

Read our full analysis of AppLovin's results here and PubMatic's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 6.5% on average over the last month. Sprinklr is down 12% during the same time and is heading into earnings with an average analyst price target of $16.5 (compared to the current share price of $10.89).

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