Yahoo Finance Sprinklr, Inc.'s (NYSE:CXM) Shift From Loss To Profit
Sprinklr, Inc. (NYSE:CXM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sprinklr, Inc. provides enterprise cloud software products worldwide. The US$3.3b market-cap company announced a latest loss of US$56m on 31 January 2023 for its most recent financial year result. The most pressing concern for investors is Sprinklr's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Sprinklr
Consensus from 11 of the American Software analysts is that Sprinklr is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$13m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 98% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Sprinklr given that this is a high-level summary, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Sprinklr currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Sprinklr, so if you are interested in understanding the company at a deeper level, take a look at Sprinklr's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Valuation: What is Sprinklr worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sprinklr is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sprinklr’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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