Summary
Sprinklr closed fiscal 2022 with fourth-quarter revenue of $135.67 million, up 30.3% from the prior-year quarter. Full-year revenue reached $492.39 million, up 27.3% from fiscal 2021. Gross profit for the quarter was $95.86 million, up 35.0%, and the quarterly gross margin was 70.7%, up 2.5 percentage points. The full-year gross margin was 70.0%, up 1.6 percentage points. Those top-line gains did not carry through to profitability. The fourth-quarter operating loss was $33.17 million, and the loss widened from the prior-year quarter. The quarterly operating margin was -24.5%, down 17.5 percentage points. For the full year, the operating loss was $99.47 million, and the loss widened from fiscal 2021. The full-year operating margin was -20.2%, down 13.6 percentage points.
Net loss for the fourth quarter was $111.47 million, and the loss widened from the prior-year quarter. The full-year net loss was also $111.47 million, and the loss widened from fiscal 2021. Diluted loss per share for the full year was $0.57, and the per-share loss widened from fiscal 2021. The gap between revenue growth and bottom-line results reflects heavy spending. Management expects costs of subscription revenue and costs of professional services to increase in absolute dollars as the company expands its customer base and invests in cloud infrastructure and support. Research and development, sales and marketing, and general and administrative expenses are also expected to increase in absolute dollars. Over the long term, management expects sales and marketing expenses to decline as a percentage of revenue.
Operational metrics showed steady expansion. Sprinklr had 1,166 customers as of January 31, 2022, compared with 1,014 customers as of January 31, 2021. Large customers, defined as those with at least $1.0 million in subscription revenue on a trailing 12-month basis, totaled 82, compared with 65 a year earlier. The net dollar expansion rate on a trailing 12-month basis was 119.8% for the period ending January 31, 2022, compared with 118.4% for the period ending January 31, 2021. Remaining performance obligations were $586.40 million as of January 31, 2022. Deferred revenue was $279.03 million, up 26.0% from the prior-year quarter. Those figures suggest a healthy backlog and renewals, though the company still faces execution risks.
Cash generation weakened. Fourth-quarter operating cash flow was -$14.99 million, and the outflow increased from the prior-year quarter. Full-year operating cash flow was -$32.92 million, a sharp decline from fiscal 2021. Capital expenditures were $0.95 million in the fourth quarter, up 52.6% from the prior-year quarter, and $6.15 million for the full year, up 127.6%. Free cash flow, a non-GAAP measure, was negative $45.328 million for fiscal 2022, compared with positive $0.827 million in fiscal 2021. The MD&A cites COVID-19 as an ongoing risk that could affect demand, customer spending, renewal and retention rates, sales cycles, sales productivity, collections, IT expenses, recruiting, and travel. The company also notes seasonality, with many customers purchasing in the fourth quarter and paying in the first quarter. Management expects free cash flow to fluctuate as operating expenses change and growth investments continue.
The filing also discusses a litigation settlement with Opal Labs Inc. that was recorded as a one-time operating expense charge in fiscal 2022. Management expects gross margin to vary from period to period and increase modestly in the long term. The company has minimum guaranteed purchase commitments of $156.3 million through fiscal 2026 and future minimum lease payments of $24.6 million. Those obligations add to the fixed cost base. Sprinklr delivered strong revenue growth and improving gross margins, but operating losses and cash burn widened significantly as the company invested heavily in sales, marketing, and research and development.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $135.7M | $127.1M | +6.8% | — | — |
| Gross profit | $95.9M | $88.4M | +8.5% | — | — |
| Gross margin | 70.7% | 69.5% | +1.1 pp | — | — |
| Research & development | $15.8M | $16.6M | -5.2% | — | — |
| Sales & marketing | $79.9M | $76.2M | +4.8% | — | — |
| General & administrative | $21.4M | $21.8M | -2.0% | — | — |
| Total operating expenses | $129.0M | $114.6M | +12.6% | — | — |
| Operating income (loss) | -$33.2M | -$26.3M | -26.2% | — | — |
| Operating margin | -24.4% | -20.7% | -3.8 pp | — | — |
| Net income (loss) | -$34.3M | -$29.2M | -17.3% | — | — |
| Net margin | -25.3% | -23.0% | -2.3 pp | — | — |
| Diluted EPS | -$0.18 | -$0.11 | -$0.07 | — | — |
| Customers | 1,166 | 1,093 | +6.7% | — | — |
Risks
The company identified a material weakness in internal control over financial reporting related to ASC 606 adoption and ongoing monitoring of costs to obtain customer contracts; remediation controls have not operated for a sufficient period to demonstrate remediation. MD&A states historical results were retroactively revised to reflect immaterial corrections related to capitalized costs to obtain customer contracts.
Net loss widened to $111.5 million for FY2022 from $38.0 million for FY2021, and operating loss widened to $99.5 million from $25.6 million; accumulated deficit was $441.6 million as of January 31, 2022. The company expects costs to increase and losses to continue as it invests in the platform, sales, and public-company operations.
Operating cash flow swung to negative $32.9 million for FY2022 from positive $7.3 million for FY2021, and free cash flow was negative $45.3 million. Continued investment in growth and seasonal billing patterns may keep cash flow volatile.
The business depends on third-party data partnerships, including a Twitter agreement expiring February 28, 2025; if it is not renewed or is terminated, the company may not provide the same level of Unified-CXM insights to customers. Losing key data licenses could materially and adversely affect results.
Artificial intelligence serves a key role in many services, and emerging ethical issues plus potential government regulation of AI ethics may increase research and development burden, cause reputational harm, and slow AI adoption in products.
The Unified-CXM market is new, fragmented, and rapidly evolving; competitors may have greater brand recognition, larger sales forces, more established customer bases, and more financial resources, and may bundle or discount products. Increased competition could reduce sales and margins.
Unstable market and economic conditions, including inflation, higher interest rates, and Russia's invasion of Ukraine, may increase costs, reduce customer demand, and make financing more difficult or dilutive. COVID-19 also continues to introduce uncertainty and remote-work risks.
The company recorded a $12.0 million one-time operating expense charge in FY2022 for settlement of Opal Labs claims alleging breach of contract and violation of Oregon's Uniform Trade Secrets Act. Legal costs and future disputes could harm financial condition.
Top 10 customers accounted for 14% of subscription revenue in FY2022 and 19% in FY2021, and the majority of the customer base consists of large enterprises with high subscription amounts. Loss of any major customer could harm results.
Selling to government agencies is highly competitive and time-consuming, requires significant upfront time and expenses, and is affected by public sector budgetary cycles and funding delays. Failure to grow government business or overcome these challenges could adversely affect results.
Rapid growth and organizational change strain management, operational, and financial resources; customer count grew 15% from 1,014 at January 31, 2021 to 1,166 at January 31, 2022, and operations span more than 60 countries. Failure to manage growth efficiently could harm results.
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 Q4 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 1, 2026.