Stock Story -
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? Find out by reading the original article on StockStory, 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 (NASDAQ:APP) 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 the full analysis of Zeta’s and AppLovin’s results on StockStory.
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).