Sprinklr (CXM) Reports Earnings Tomorrow. What To Expect

Customer experience software provider Sprinklr (NYSE:CXM) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Sprinklr reported revenues of $178.5 million, up 18.5% year on year, beating analyst revenue expectations by 2.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating growth in large customers. The company added 5 enterprise customers paying more than $1m annually to a total of 120.

Is Sprinklr buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sprinklr's revenue to grow 14.7% year on year to $180.4 million, slowing down from the 23.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.1%.

Looking at Sprinklr's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ON24's revenues decreased 17.6% year on year, beating analyst estimates by 3.3% and PubMatic reported revenue decline of 1.3% year on year, exceeding estimates by 7.1%. ON24 traded up 6.4% on the results, PubMatic was up 12.2%.

Read our full analysis of ON24's results here and PubMatic's results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 14.7% over the last month. Sprinklr is up 18.6% during the same time, and is heading into the earnings with analyst price target of $18.8, compared to share price of $16.8.

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The author has no position in any of the stocks mentioned.