Summary
Sprinklr closed fiscal 2023 with fourth-quarter revenue of $165.33 million, up 21.9% from a year earlier. Subscription revenue drove the growth, at $148.3 million for the quarter, up 26% year over year. Gross profit rose 31.4% to $126.01 million, and gross margin expanded by 5.6 percentage points to 76.2%. The operating loss narrowed to $1.82 million, while operating margin improved by 25.3 percentage points to -1.1%. Net loss narrowed to $0.67 million. On a non-GAAP basis, the quarter produced operating income of $14.3 million, reversing a non-GAAP operating loss of $11.5 million a year ago.
The full year told a similar story. Revenue reached $618.19 million, up 25.5%. Subscription revenue for the year was $548.6 million, up 28%. Gross profit was $454.46 million, up 31.8%. The full-year operating loss narrowed to $51.22 million, and the full-year net loss narrowed to $55.74 million. Diluted loss per share for the year narrowed to $0.21. Non-GAAP operating income for the year was $6.0 million, compared with a non-GAAP operating loss of $35.5 million a year ago, and non-GAAP net income per share was $0.01 against a non-GAAP net loss per share of $0.24.
Cash generation improved sharply. Operating cash flow was $22.07 million in the fourth quarter, up $37.06 million, and $26.66 million for the full year, up $59.58 million. Free cash flow was $16.3 million in the quarter. Capital expenditures were $3.17 million in the quarter, up 233.1%, and $6.09 million for the year, down 0.9%. Deferred revenue ended at $324.14 million, up 16.2%. Remaining performance obligations were $719.50 million, up 26.3%, and current RPO was $485.2 million, up 23%. The company also reported total cash, cash equivalents and marketable securities of $578.6 million as of January 31, 2023. It noted that prior-year RPO was revised to $569.5 million from $586.4 million to correct the treatment of some contracts.
Customer metrics expanded. Sprinklr ended the year with 1,428 customers, up from 1,166 a year earlier. Large customers, defined as those with at least $1.0 million in trailing 12-month subscription revenue, reached 108, up 32% year over year. Net dollar expansion rate was 123.9% for the trailing 12 months ending January 31, 2023, against 119.8% for the prior period. Guidance for the first quarter ending April 30, 2023 puts subscription revenue between $153 million and $155 million and the top line between $168 million and $170 million. Non-GAAP operating income is guided to $3 million to $5 million and non-GAAP net income per share to $0.00 to $0.01, assuming 268 million weighted average shares outstanding. For the full fiscal year ending January 31, 2024, the outlook puts subscription revenue between $644 million and $648 million and the top line between $710 million and $714 million, with non-GAAP operating income of $41 million to $45 million and non-GAAP net income per share of $0.13 to $0.15, assuming 273 million weighted average shares outstanding.
Risks still hang over the story. Management pointed to inflation, rising interest rates, the Russia-Ukraine war, and recent bank failures as factors that could slow enterprise spending. The company also listed long and unpredictable sales cycles, concentration among large enterprise customers, competition in a rapidly evolving market, data privacy and security obligations, and reliance on third-party data centers and cloud providers. Sprinklr gave notice on March 23, 2023 of its intent to terminate its SVB Credit Facility. Purchase commitments with data and service providers totaled $220.9 million as of January 31, 2023, including a $60.0 million commitment over five years with $52.0 million still remaining. No litigation settlements were accrued during fiscal 2023.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $165.3M | $157.3M | +5.1% | $135.7M | +21.9% |
| Gross profit | $126.0M | $116.7M | +7.9% | $95.9M | +31.4% |
| Gross margin | 76.2% | 74.2% | +2.0 pp | 70.7% | +5.5 pp |
| Research & development | $20.1M | $19.2M | +4.8% | $15.8M | +27.7% |
| Sales & marketing | $83.3M | $79.5M | +4.7% | $79.9M | +4.3% |
| General & administrative | $24.4M | $22.6M | +8.0% | $21.4M | +14.0% |
| Total operating expenses | $127.8M | $121.3M | +5.3% | $129.0M | -0.9% |
| Operating income (loss) | -$1.8M | -$4.6M | +60.5% | -$33.2M | +94.5% |
| Operating margin | -1.1% | -2.9% | +1.8 pp | -24.4% | +23.3 pp |
| Net income (loss) | -$667.0K | -$5.9M | +88.6% | -$34.3M | +98.1% |
| Net margin | -0.4% | -3.7% | +3.3 pp | -25.3% | +24.9 pp |
| Diluted EPS | $0.00 | -$0.02 | +$0.02 | -$0.18 | +$0.18 |
| Customers | 1,428 | — | — | 1,166 | +22.5% |
Risks
In connection with the fiscal year 2023 financial statements, the company identified an additional material weakness in its process to manage and record commission and bonus expense, including insufficient user-acceptance testing, incomplete identification of data inputs, and lack of completeness and accuracy controls. Remediation is ongoing and may not be sufficient to prevent future material misstatements.
MD&A highlights rising inflation, U.S. Federal Reserve interest rate increases, the Russia-Ukraine war, and global economic uncertainty, which may cause businesses to slow information technology spending. The risk factors also note that higher inflation could reduce customers' marketing budgets and demand for the platform.
The business depends on continued availability of data from partners, including a Twitter agreement that expires on February 28, 2025. If that agreement is not renewed on the same or similar terms, the company may not be able to provide the same level of Unified-CXM insights and results could be materially adversely affected.
Artificial intelligence serves a key role in many services, and emerging ethical issues plus potential government regulation in AI ethics may increase research and development burden and subject the company to brand or reputational harm, competitive harm, or legal liability.
The sales cycle with enterprise and international clients can be long and unpredictable, often around nine months or more, making the timing of sales and related revenue recognition difficult to predict.
The top 10 customers accounted for 14% of subscription revenue in the fiscal years ended January 31, 2023 and 2022, and the majority of the customer base consists of large enterprises. The loss of any one of these customers could have a relatively higher impact on results of operations.
Success depends substantially on the management team, including Founder, Chairman and CEO Ragy Thomas, and the company does not maintain key man insurance on any executive officer. Competition for experienced software engineers and sales professionals is intense, and the company has experienced greater than usual employee turnover in recent years.
The revenue growth rate has fluctuated in prior periods and may decline again as the customer base increases and market penetration rises. The company expects subscription revenue growth rates may be lower in the near term compared to comparable periods in the prior fiscal year.
As of January 31, 2023, minimum guaranteed purchase commitments with data and service providers totaled $220.9 million through fiscal year 2026, including $52.0 million remaining on a $60.0 million commitment. If demand slows, these fixed obligations could strain financial resources.
Expanding sales to U.S. federal, state, local, and foreign government agencies subjects the company to competitive and time-consuming contracting requirements, public sector budgetary cycles, and reputational risks from serving sensitive industries.
On March 23, 2023, the company provided notice to Silicon Valley Bank of its intent to terminate the SVB Credit Facility, and $4.6 million in letters of credit remain outstanding if terminated. Bank failures and market volatility could also limit access to capital on favorable terms.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Total customers
Summary, forecast, risks and KPIs are extracted from Sprinklr, Inc.'s SEC filings for Q4 FY2023 (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.