Key Highlights

  • CXM shares are trading at $7.21 in pre-market activity, down 5.13% from Tuesday's close of $7.60.
  • Total second-quarter Revenue was $213.7 million, up just 1% year over year, with subscription revenue up 3% to $194.8 million.
  • Non-GAAP Operating Income fell to $31.3 million from $38.2 million a year earlier, with non-GAAP Operating Margin narrowing to 15% from 18%.
  • Remaining performance obligations grew 11% year over year to $1.03 billion, while current RPO grew a more modest 3%.
  • Third-quarter guidance calls for total revenue of $215.0 million to $216.0 million, roughly in line with current growth trends.

Growth Slowdown Weighs on Shares

Sprinklr (NYSE:CXM) shares fell in pre-market trading after the company reported second-quarter revenue growth of just 1% year over year, a marked deceleration that overshadowed in-line guidance for the coming quarter. Sprinklr is a New York-based enterprise software company that provides an AI-powered Unified Customer Experience Management platform used by large organizations to manage social media, customer service, and Marketing across digital channels.

Total revenue for the quarter was $213.7 million, up from $212.0 million a year earlier, while subscription revenue rose a slightly stronger 3% to $194.8 million.

Margins Also Narrowed From a Year Ago

Non-GAAP operating income fell to $31.3 million from $38.2 million a year earlier, with non-GAAP operating margin narrowing to 15% from 18%. GAAP Net Income per diluted share was $0.03, down from $0.05 a year earlier, while non-GAAP net income per diluted share came in at $0.11, down from $0.13. Remaining performance obligations grew a healthier 11% year over year to $1.03 billion, though current RPO, representing contracts to be recognized within 12 months, grew a more modest 3%.

Guidance and Valuation

For the third fiscal quarter, the company guided total revenue of $215.0 million to $216.0 million and subscription revenue of $196.0 million to $197.0 million, alongside non-GAAP operating income of $33.5 million to $34.5 million. Sprinklr's market Capitalization stands at approximately $1.88 billion, with a forward price-to-earnings ratio of 14.38. Shares have traded within a 52-week range of $4.72 to $8.69, with cash, cash equivalents, and marketable securities totaling $452.9 million as of quarter-end.

Outlook: Growth Reacceleration Remains the Key Question

Sprinklr shares are falling as investors weigh whether current growth rates represent a durable plateau or a temporary slowdown during the company's ongoing Business transformation. Progress on new ARR growth, enterprise adoption, and the pace of AI product innovation will likely determine whether growth can reaccelerate in coming quarters.