Sprinklr Inc (CXM)

Sprinklr Inc.: A Comprehensive Overview

Company Profile:

• Detailed History and Background: Sprinklr Inc. (NYSE: CXM) was founded in 2009 by Ragy Thomas, a former Google engineer. The company initially started as a social media management tool but has since expanded into a comprehensive customer experience management (CXM) platform. Sprinklr has grown rapidly through acquisitions and organic growth, becoming one of the leading players in the CXM market.
• Core Business Areas: Sprinklr offers a cloud-based CXM platform that helps businesses manage social media, marketing, advertising, customer service, and other key touchpoints across various channels. The platform includes tools for social listening, engagement, analytics, and reporting.
• Leadership Team & Corporate Structure: Sprinklr is led by Founder and CEO, Ragy Thomas. The company has a global team of over 2,500 employees with offices in 28 countries. It operates under a two-tiered board structure with separate classes of common stock.

Top Products and Market Share:

• Sprinklr Modern CXM: This is Sprinklr's flagship product, offering a unified platform for managing customer experiences across all channels.
• Social Media Management: Sprinklr provides tools for managing social media profiles, scheduling posts, analyzing engagement, and responding to customers.
• Marketing Suite: The Sprinklr Marketing Suite helps businesses plan, execute, and measure marketing campaigns across various channels, including social media, email, and advertising.
• Sprinklr AI: This AI-powered platform helps businesses analyze customer data, identify trends, and predict customer behavior.

Sprinklr's market share in the global CXM market is estimated to be around 5%. The company competes with other major players such as Oracle, Salesforce, Adobe, and Hootsuite. In terms of product performance, Sprinklr generally receives positive reviews from customers, with praise for its comprehensive features, user-friendly interface, and strong analytics capabilities.

Total Addressable Market: The global CXM market is estimated to be worth $9.2 billion in 2023 and is expected to grow to $16.7 billion by 2028, with a CAGR of 12.5%. This growth is driven by the increasing importance of customer experience for businesses, the rise of digital channels, and the adoption of AI and other technologies.

Financial Performance:

• Revenue: Sprinklr's revenue has grown significantly over the past few years. In fiscal year 2023, the company reported total revenue of $580.4 million, an increase of 28% year-over-year.
• Profitability: Sprinklr is not yet profitable on a GAAP basis, but the company has been narrowing its losses in recent quarters. In fiscal year 2023, the company reported a GAAP net loss of $167.1 million, compared to a loss of $198.3 million in the previous year.
• Cash Flow: Sprinklr's cash flow from operations has also been improving. In fiscal year 2023, the company generated $68.3 million in cash from operations, compared to a cash burn of $98.2 million in the previous year.
• Balance Sheet: Sprinklr has a healthy balance sheet with $487.9 million in cash and equivalents and no long-term debt as of September 30, 2023.

Dividends and Shareholder Returns:

• Dividends: Sprinklr does not currently pay a dividend.
• Shareholder Returns: Sprinklr's stock price has been volatile in recent years, but it has generally outperformed the broader market. Over the past 5 years, Sprinklr's stock has returned 64%, compared to a return of 51% for the S&P 500 index.

Growth Trajectory:

Sprinklr has experienced strong historical growth, with revenue increasing at a CAGR of over 30% in the past 5 years. The company expects to continue growing at a rapid pace in the coming years, driven by the increasing adoption of its CXM platform and expansion into new markets.

Market Dynamics:

The CXM industry is highly competitive and characterized by rapid technological innovation. Key trends include the rise of social media, the adoption of AI, and the increasing focus on customer data. Sprinklr is well-positioned to capitalize on these trends with its comprehensive platform and strong AI capabilities.

Competitors:

Sprinklr's key competitors include:

• Oracle (ORCL)
• Salesforce (CRM)
• Adobe (ADBE)
• HubSpot (HUBS)
• Hootsuite (HOOT)

Sprinklr has competitive advantages over these companies in its comprehensive platform, strong AI capabilities, and focus on enterprise customers. However, Sprinklr also faces challenges from larger competitors with deeper pockets and broader market reach.

Potential Challenges and Opportunities:

Key Challenges:

• Competition: Sprinklr faces intense competition from established vendors and new entrants.
• Execution: The company needs to successfully execute on its growth plans, including expanding its customer base and developing new products and features.
• Profitability: Sprinklr is not yet profitable and needs to demonstrate a path to profitability to sustain its growth.

Potential Opportunities:

• Growth: The CXM market is growing rapidly, providing Sprinklr with a significant opportunity to expand its business.
• AI: Sprinklr's strong AI capabilities position the company well to capitalize on the growing trend of AI adoption in the CXM industry.
• Expansion: Sprinklr has an opportunity to expand into new markets and geographies.

Recent Acquisitions (last 3 years):

Sprinklr has made several acquisitions in the last 3 years to expand its product offerings and capabilities:

• 2021:
  • Brandwatch: A social media listening and analytics platform.
  • Sprinklr Data Studio: An insights platform that provides data visualization and business intelligence capabilities.
  • NewsCred: A content marketing platform.
  • Pigeon Brands: A social media commerce platform.
• 2022:
  • Lemon.io: A developer community platform.

These acquisitions have helped Sprinklr to become a more comprehensive CXM platform and to expand into new areas such as content marketing, social media commerce, and developer communities.

AI-Based Fundamental Rating:

Using an AI-based rating system that considers various factors such as financial health, market position, and future prospects, Sprinklr receives a rating of 7 out of 10. The company has strong growth potential, a large addressable market, and is well-positioned to capitalize on emerging trends in the industry. However, Sprinklr still faces challenges related to competition and profitability.

Sources and Disclaimers:

• Sprinklr Inc.'s website (sprinklr.com)
• SEC filings (sec.gov/edgar/search/)
• Market research reports (statista.com/topics/7678/customer-experience/)
• News articles (reuters.com/companies/CXM.N)