Stock Story -
Customer experience software provider Sprinklr (NYSE:CXM) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Sprinklr met analysts’ revenue expectations last quarter, reporting revenues of $196 million, up 13% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin. It added 12 enterprise customers paying more than $1m annually to reach a total of 138.
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 8.9% year on year to $194.4 million, slowing from the 18.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
The majority of analysts covering the company have 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 2.1% on average.
Looking at Sprinklr’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts’ expectations by 7.2%, and Freshworks (NASDAQ:FRSH) reported revenues up 20%, topping estimates by 3%. Zeta traded up 11.9% following the results while Freshworks was down 5.8%.
Read the full analysis of Zeta’s and Freshworks’s results on StockStory.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 10.2% on average over the last month. Sprinklr is up 1.2% during the same time and is heading into earnings with an average analyst price target of $11.7 (compared to the current share price of $8.97).
