What's Going On With Software Company Sprinklr Shares Today?

Sprinklr Inc CXM shares are diving by over 20% after the company reported Q3 FY24 results.

The company reported a revenue increase of 18% Y/Y to $186.3 million, beating the consensus of $180.4 million.

Subscription revenue was up 22% Y/Y to $170.5 million in the quarter. RPO and cRPO increased 34% Y/Y and 19% Y/Y, respectively.

Non-GAAP operating income rose significantly to $27.4 million from $6.9 million a year ago, with the margin expanding to 15%.

Adjusted EPS of $0.11 beat the consensus of $0.07. 

Net operating cash flow came in at $21.0 million, and free cash flow was $15.9 million in Q3. As of October 31, 2023, cash, cash equivalents, and marketable securities stood at $656.4 million.

Outlook: CXM expects Q4 revenue of $187.5 million-$189.5 million (vs. $188.26 million estimate) and adjusted EPS of $0.08-$0.09 vs. $0.08 estimate.

For FY24, the company raised the revenue guidance to $725.5 million-$727.5 million (from $719 million-$721 million) vs. $720.47 million estimate and adjusted EPS to $0.36-$0.37 (from $0.30-$0.31) vs. consensus of $0.30.

Price Action: CXM shares are down 21.50% at $13.10 premarket on the last check Thursday.