Sprinklr: Patience Is Required As This Company Rebounds
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Sprinklr has reported a Q3 beat-and-raise, but faces challenges with decelerating subscription revenue growth. The company is introducing a new CEO and products in FY26 to boost sales momentum. Despite risks like higher churn and competition, its valuation remains attractive.
December 17, 2024 | 6:30 am
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Sprinklr's Q3 results exceeded expectations, but subscription revenue growth is slowing. The company plans to introduce new products in FY26 under a new CEO to regain sales momentum. Despite risks, the stock is attractively valued.
Sprinklr's Q3 performance was strong, but the deceleration in subscription revenue growth is a concern. The introduction of a new CEO and upcoming products in FY26 are positive steps towards improving sales momentum. The stock's attractive valuation at 2.3x EV/FY25 revenue suggests potential for price appreciation, despite risks like higher churn and competition.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100