Sprinklr (CXM) on Wednesday reported January-quarter earnings and revenue that topped estimates. The social media marketing specialist’s guidance also came in above expectations, sending CXM stock soaring after hours.
Sprinklr earnings for its fourth quarter were 6 cents a share, as the company turned profitable compared with the year before. Revenue climbed 22% to $165.3 million, the New York-based software maker said.
Analysts expected Sprinklr earnings of 2 cents a share on revenue of $162.8 million. A year earlier, Sprinklr lost 5 cents per share on revenue of $135.7 million.
CRM stock popped 13.7% to 12.37 in extended trading on the stock market today.
Outlook For CXM Stock Tops Views
Sprinklr’s 2023 fiscal year ended Jan. 31.
For fiscal 2024, Sprinklr predicted profit of 14 cents a share on revenue of $712 million at the midpoint of its outlook. Analysts had predicted full-year profit of 10 cents a share on revenue of $710.4 million.
Meanwhile, backed by private equity firm Hellman & Friedman, Sprinklr in June 2021 launched an initial public offering that raised $266 million.
Sprinklr helps companies manage their digital identities — in advertising, marketing, research and on social media. Sprinklr uses artificial intelligence tools in its cloud-based Customer Experience Management platform. Also, Sprinklr provides a self-serve ad-buying platform and measurement tools.
Workforce Reductions To Help Raise Margins
In February, Sprinklr announced a 4% workforce reduction. The move was expected to raise fiscal 2024 operating margins.
Heading into the earnings report, Sprinklr stock owned a Relative Strength Rating of 89 out of a possible 99, according to IBD Stock Checkup. In addition, CXM stock had gained 32% in 2022.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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