Customer experience software provider Sprinklr (NYSE: CXM) will be reporting results tomorrow after the bell. Here’s what investors should know.
Sprinklr beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $197.2 million, up 10.5% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations. It added 7 enterprise customers paying more than $1 million annually to reach a total of 145.
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 5.4% year on year to $196.4 million, slowing from the 18.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally 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% on average.
Looking at Sprinklr’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 42%, beating analysts’ expectations by 6.3%, and AppLovin reported revenues up 38.6%, topping estimates by 5.9%. Zeta traded down 23.3% following the results while AppLovin was up 46.1%.
Read our full analysis of Zeta’s results here and AppLovin’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 17.6% on average over the last month. Sprinklr is up 12.5% during the same time and is heading into earnings with an average analyst price target of $9.68 (compared to the current share price of $8.55).
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