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.
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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.
Also, Sprinklr customers include Microsoft (MSFT) and Roche. HubSpot (HUBS) is a rival.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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