Summary
Sprinklr reported fiscal 2022 third quarter revenue of $127.06 million, up 31.9% from the prior-year quarter. Year-to-date revenue reached $356.73 million, up 26.1%. Gross profit was $88.36 million in the quarter, up 33.7%, and gross margin was 69.5%, up 0.9 percentage points. On a year-to-date basis, gross profit was $248.98 million, up 28.4%, and gross margin was 69.8%, up 1.3 percentage points. The company paired top-line growth with modest gross margin expansion, but GAAP profitability weakened and non-GAAP profitability also declined from the prior-year quarter.
Profitability remains under pressure. Third quarter operating loss was $26.29 million, and the loss widened 72.0% from the prior-year quarter. Operating margin was -20.7%, down 4.8 percentage points. Net loss was $29.23 million, and the loss widened 54.1%. Diluted loss per share was $0.11, which narrowed 47.6% from the prior-year quarter. Year to date, operating loss was $66.30 million, a loss that widened 261.7%; net loss was $77.18 million, a loss that widened 184.1%; and diluted loss per share was $0.44, a loss that widened 41.9%. On a non-GAAP basis, the company reported an operating loss of $13.5 million, compared with non-GAAP operating income of $8.1 million in the prior-year quarter. Non-GAAP net loss per share was $0.06, compared with non-GAAP net income per share of $0.02.
Cash generation and investment metrics show a mixed picture. Operating cash flow was -$1.07 million in the quarter, an improvement of 86.0% from the prior-year quarter. For the first nine months, operating cash flow was -$17.93 million, down 213.7% from the prior-year period. Capital expenditures were $1.34 million in the quarter, up 171.3%, and $5.20 million year to date, up 150.1%. Deferred revenue, current portion only, was $221.92 million at October 31, 2021. Remaining performance obligations were $459.40 million. Non-GAAP free cash flow was -$4.1 million in the quarter, compared with -$9.1 million in the prior-year quarter.
Operational metrics point to a growing enterprise base. Sprinklr had 1,093 customers as of October 31, 2021, compared with 966 a year earlier. Large customers, defined as those with at least $1 million in subscription revenue on a trailing 12-month basis, totaled 80, compared with 62. The net dollar expansion rate was 117% for the trailing 12-month periods ending October 31, 2021 and 2020. These measures suggest that existing customers are expanding, though the company still faces a competitive and evolving market.
Guidance for the fourth quarter ending January 31, 2022 calls for subscription revenue of $113 million to $115 million. The company also guided to a non-GAAP operating loss of $21 million to $23 million and non-GAAP net loss per share of $0.08 to $0.09, assuming 260 million weighted average shares outstanding. For the full fiscal year ending January 31, 2022, Sprinklr guided to subscription revenue of $423 million to $425 million. Full-year non-GAAP operating loss is expected to be $48 million to $50 million, with non-GAAP net loss per share of $0.30 to $0.31, assuming 195 million weighted average shares outstanding.
The filing also lists risks that could affect results. These include the possibility that rapid growth is not indicative of future growth, the fact that revenue growth rates have fluctuated, the ability to achieve or maintain profitability, dependence on subscriptions, a new and rapidly evolving market, customer concentration, long and unpredictable sales cycles, the ongoing COVID-19 pandemic, data privacy and security concerns, reliance on third-party data centers, international expansion, and an outstanding legal matter. The company incurred higher legal costs tied to that matter, which contributed to general and administrative expense trends even as stock-based compensation declined.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2022 | Q2 FY2022 | QoQ | Q3 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $127.1M | $118.7M | +7.0% | — | — |
| Gross profit | $88.4M | $81.4M | +8.6% | — | — |
| Gross margin | 69.5% | 68.5% | +1.0 pp | — | — |
| Research & development | $16.6M | $15.1M | +10.2% | — | — |
| Sales & marketing | $76.2M | $70.2M | +8.5% | — | — |
| General & administrative | $21.8M | $25.3M | -13.8% | — | — |
| Total operating expenses | $114.6M | $110.7M | +3.6% | — | — |
| Operating income (loss) | -$26.3M | -$29.3M | +10.3% | — | — |
| Operating margin | -20.7% | -24.7% | +4.0 pp | — | — |
| Net income (loss) | -$29.2M | -$33.2M | +12.1% | — | — |
| Net margin | -23.0% | -28.0% | +5.0 pp | — | — |
| Diluted EPS | -$0.11 | -$0.20 | +$0.09 | — | — |
| Customers | 1,093 | 1,062 | +2.9% | — | — |
Risks
Net loss widened to $29.2 million in FY2022 Q3 from $19.0 million in FY2021 Q3, and to $77.2 million for FY2022 year to date from $27.2 million. Operating loss widened to $26.3 million in FY2022 Q3 from $15.3 million in FY2021 Q3, and the company had an accumulated deficit of $418.5 million as of October 31, 2021.
Sales and marketing expense increased 68% in FY2022 Q3 and 51% for FY2022 year to date, while research and development expense increased 60% in FY2022 Q3 and 67% for FY2022 year to date, outpacing revenue growth of 31.9% in FY2022 Q3 and 26.1% for FY2022 year to date and pressuring operating margins.
Operating cash flow was negative $17.9 million for FY2022 year to date, down from positive $15.8 million for FY2021 year to date. Free cash flow was negative $27.3 million for FY2022 year to date versus positive $11.2 million for FY2021 year to date, and the company expects free cash flow to fluctuate as it invests in growth.
The substantial majority of revenue derives from subscriptions to the Unified-CXM platform, and the market for Unified-CXM solutions is new and rapidly evolving. If market adoption grows more slowly than expected or the platform fails to adapt to changing customer demands, results could be harmed.
The business depends on continued availability of data from partners, including Twitter data under an agreement that expires on February 28, 2025. If key data licenses fail, lapse, terminate, or are not renewed on favorable terms, the company may not provide the same level of Unified-CXM insights and results could be materially harmed.
The filing states non-material cybersecurity attacks and other security incidents have occurred in the past and may occur with more frequency or sophistication. Large enterprise customers have heightened sensitivity, and an actual or perceived breach could reduce demand, cause customer losses, regulatory fines, litigation, and remediation costs.
Revenue grew 31.9% in FY2022 Q3 and 26.1% for FY2022 year to date, but the filing states recent rapid growth may not be indicative of future growth and revenue growth rate is expected to decline as the business matures. Sales and marketing spending and headcount expansion may not yield anticipated benefits.
The business depends on customer renewals and expansion, with net dollar expansion rate at 117% for the trailing 12-month periods ending October 31, 2021 and 2020. Customers grew to 1,093 from 966 and large customers grew to 80 from 62, but renewal rates could decline or fluctuate.
Artificial intelligence serves a key role in many services, and emerging ethical or regulatory issues could increase R&D costs, create reputational or legal liability, or slow adoption of AI in products and services. Government regulation of AI ethics may add burden and cost.
Stringent and changing data privacy laws, including GDPR, CCPA, CPRA, and evolving cross-border transfer requirements, could subject the company to significant fines and compliance costs. GDPR noncompliance carries fines of up to the greater of EUR 20 million or 4% of global annual revenue.
The Unified-CXM market is fragmented, rapidly evolving, and highly competitive, with competitors that may have greater name recognition, larger customer bases, more resources, and ability to bundle products at lower prices. Acquisitions of data providers by competitors could affect access to customer feedback data.
MD&A reports legal costs increased $2.7 million in FY2022 Q3 and $5.7 million for FY2022 year to date due to an outstanding legal matter. This contributed to G&A expense pressure despite a $12.1 million decrease in stock-based compensation expense in FY2022 Q3.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Total customers
Summary, forecast, risks and KPIs are extracted from Sprinklr, Inc.'s SEC filings for Q3 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.