The chart below shows how CXM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CXM sees a +2.04% change in stock price 10 days leading up to the earnings, and a -4.57% change 10 days following the report. On the earnings day itself, the stock moves by +1.39%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue and Subscription Growth: 3Q total revenue grew 8% year-over-year to $200.7 million, and subscription revenue grew 6% year-over-year to $180.6 million.
Non-GAAP Operating Income Margin: We generated $23.3 million in non-GAAP operating income, which resulted in a 12% non-GAAP operating margin for the quarter.
Customer Base Expansion: We have grown our customer base to well over 1,800 customers today, of which nearly 150 are million-dollar-plus customers.
Net Dollar Expansion Rate: Our subscription revenue-based net dollar expansion rate in the third quarter was 107%.
Revenue Growth Projection: We expect total revenue to be in the range of $200 million to $201 million representing 3% growth year-over-year at the midpoint.
Negative
Revenue Growth Slowdown: Total revenue was $200.7 million, which is only an 8% increase year-over-year, indicating a slowdown in growth compared to previous quarters.
Operating Income Performance: Non-GAAP operating income was $23.3 million, resulting in a 12% margin, which is below expectations for a company of this size.
Subscription Revenue Challenges: Subscription revenue growth was only 6% year-over-year, reaching $180.6 million, suggesting challenges in customer retention and acquisition.
Professional Services Revenue Decline: Professional services revenue was $20.1 million, which was driven by fewer projects completed in the quarter, indicating operational inefficiencies.
Rule of 40 Performance: The company is currently operating below 20% on the Rule of 40, which is not acceptable for a SaaS company aiming for sustainable growth.
Sprinklr, Inc. (CXM) Q3 2025 Earnings Call Transcript
CXM.N
-2.63%