Photo Credit: Gerd Altmann from Pixabay

According to a recent report, the global customer experience management (CXM) market was valued at $8.79 billion in 2021 and is expected to grow at 18% CAGR from 2022 to 2030 is driven by the increasing need among organizations to adopt customer experience strategies, such as regular communication and engagement to deliver the best service performance to customers in real-time. New York-based Sprinklr (NYSE: CXM) is a leading player in the market that went public last year and continues to deliver strong results.

Sprinklr’s Offerings

Founded in 2009 by Ragy Thomas, Sprinklr is a provider of enterprise software for customer experience management. As the world continues to become more and more connected, organizations are also expected to improve their connections with their customers. To succeed in that, organizations need to be able to communicate instantly with consumers across multiple channels.

Sprinklr realized that as enterprises scale, they become increasingly siloed. Within the organization, different customer-facing departments have different ways of connecting with their customers, and each of these ways offers a fragmented view of the customer. Legacy CRM systems are limited by a narrow set of structured, backward-looking customer information and are unable to decipher the unstructured, real-time data that help keep organizations informed of customer experiences.

To address this challenge, Sprinklr was set up as a software platform purpose-built to help enterprises break down information silos across the customer journey. Sprinklr’s AI-based solution deciphers unstructured digital data to create a unified view of each customer. Its software aims to help brands understand conversations on channels like social media, messaging, blogs, and review sites. Its software platform performs 10 billion predictions every day using more than 750 pre-built artificial intelligence models.

Sprinklr’s Financials

Sprinklr’s purpose-built Unified-CXM platform has seen strong growth in the recent past. Revenues have grown from $324.3 million in fiscal 2020 to $386.9 million in fiscal 2021. Net loss has grown from $39.1 million to $41.2 million during the same period.

Recently, Sprinklr announced its third-quarter earnings. Revenue grew 32% to $127.1 million and loss was $0.06 per share. Subscription revenue grew 29% to $109.9 million and professional services revenue was $17.1 million compared with $11.3 million a year ago.

Sprinklr’s offerings have helped it attract more than half of the Fortune 100 as its clients. It has most major enterprises as its customers and continues to deliver strong big-ticket growth. In the recently reported quarter, the number of contracts worth at least $1 million on an annual basis rose by 29% year over year last quarter to 80.

For the fourth quarter, it forecast revenues of $129-$131 million, and a loss per share of $0.09-$0.08. For the fiscal year, it expects revenues of $486-$488 million and a loss per share of $0.31-$0.30. The market forecast revenues of $130.38 million and a loss of $0.09 per share for the quarter, revenues of $487.15 million, and a loss of $0.30 per share for the fiscal year.

Sprinklr’s Growth Focus

Sprinklr continues to expand its market presence through partnerships. It recently announced its partnership with Google Cloud that will give companies cloud experience to enhance their customer experience management strategies. Sprinklr’s Unified-CXM platform and Google Cloud’s scalable and reliable infrastructure will allow customers to maintain enterprise-grade performance while creating global customer engagement strategies across digital channels. The partnership will also allow the two companies to create go-to-market programs to grow awareness among global enterprises.

It also launched its AWS Marketplace offering, allowing AWS customers to consolidate billing, simplify procurement, and realize faster time-to-value by leveraging Sprinklr to create insight-driven strategies and better customer experiences.

The customer experience management market is a very busy one that has also seen a lot of consolidation. Medallia, one of the leading players, was acquired by private equity player, Thoma Bravo, last year. Qualtrics is another significant player that was spun off in 2020 after being acquired by SAP in 2018. Sprinklr believes that its product offering that has been recognized by both Forrester and Gartner in multiple reports will help them stand out from the rest of the players.

Prior to going public, Sprinkr had raised $429 million in eight rounds of funding led by Hellman & Friedman, EDBI, Wellington Management, Temasek Holdings, Intel Capital, ICONIQ Capital, and Battery Ventures. Its most recent round was held in September 2020 where it raised $200 million. Sprinklr went public in June 2021 at a valuation of $3.7 billion when it raised $266 million at a list price of $16. It is currently trading at $10.65 and has a market capitalization of $2.99 billion.