Sprinklr: Challenges Ahead, But Mostly Priced In (Rating Upgrade)

  • I'm upgrading Sprinklr to a neutral rating after its recent Q1 earnings release showed a stabilization in growth rates as well as a sharp jump in operating margins. Sprinklr is very cheap relative to peers, trading at ~2x forward revenue. At the same time, however, Sprinklr faces tepid growth due both to execution issues and macro headwinds, as well as intense competition from larger players like Salesforce and HubSpot.