1. Financial Health Check
- Revenue: $796.39M
- Net Income: $121.61M
- Net Margin: 15.27%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2025 | 796.39M | 121.61M | 574.32M | 77.59M |
| 2024 | 732.36M | 51.40M | 552.96M | 71.47M |
| 2023 | 618.19M | -55.74M | 454.46M | 26.66M |
| 2022 | 492.39M | -111.47M | 344.84M | -32.92M |
| 2021 | 386.93M | -41.18M | 264.85M | 7.31M |
4. Competitive Advantage (Moat)
- Type of Moat: Network Effect, Switching Costs
- Strength: Narrow
- Description: Sprinklr has a leading-edge AI platform and gold standard customers, creating a network effect. Customers generating $1M-$20M in annual subscription revenue shows stickiness which is enhanced through deeper integration into customer workflows which increase switching costs.
5. Management Quality
- CEO: Rory Read
- Capital Allocation: Restructuring to optimize cost structure, including a 15% workforce reduction. Intends to improve operating margins and reinvest savings in strategic areas like go-to-market, customer implementations, AI, and core product skills.
- Tone: Optimistic
- Key Quotes:
- "We have clarity about the way forward and what we have to fix and we will get there step by step, day by day, quarter by quarter."
- "The world is moving from transactional customer engagement to unified 360-degree customer experiences and we believe our vision to define the world's ability to make every customer experience extraordinary, position us well to capitalize on this opportunity."
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Inconsistent implementations leading to pressure on customer renewals and satisfaction.]
- [Risk 2: Elevated churn experienced during FY '25.]
- [Risk 3: Macroeconomic uncertainty impacting customer spending.] ```
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?