Sprinklr reported its financial results for the third fiscal quarter ended October 31, 2024, with total revenue reaching $200.7 million, an 8% increase year-over-year. Subscription revenue grew by 6% year-over-year to $180.6 million, exceeding analyst expectations.
The company achieved a non-GAAP operating margin of 12% and generated $4.9 million in free cash flow during the quarter. Sprinklr also noted an increase in its high-value customer base, with 147 customers generating over $1 million in subscription revenue, up 20% year-over-year.
For the fourth fiscal quarter ending January 31, 2025, Sprinklr provided guidance for total revenue between $200 million and $201 million, and subscription revenue between $180 million and $181 million. Non-GAAP operating income is projected to be between $17.5 million and $18.5 million, with non-GAAP net income per share of approximately $0.07.
The full fiscal year 2025 guidance includes total revenue between $793.9 million and $794.9 million, and subscription revenue between $715.9 million and $716.9 million. Non-GAAP operating income is expected to be between $76.4 million and $77.4 million, with non-GAAP net income per share between $0.31 and $0.32.
Management attributed the reduced growth estimates in the outlook to subscription renewal pressures caused by macroeconomic headwinds and an 'over-rotation' of sales to its Contact Center as a Service (CCaaS) market. This indicates ongoing challenges in balancing growth across its product suites.
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