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    Insight
    published
    2025-12-30

    CXM report

    Stock Analysis Template

    Company Information

    • Name: CXM
    • Ticker: CXM
    • Sector: [Sector]
    • Market Cap: [Market Cap]

    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

    Revenue vs Net Income

    3. Historical Data

    YearRevenueNet IncomeGross ProfitOp. Cash Flow
    2025796.39M121.61M574.32M77.59M
    2024732.36M51.40M552.96M71.47M
    2023618.19M-55.74M454.46M26.66M
    2022492.39M-111.47M344.84M-32.92M
    2021386.93M-41.18M264.85M7.31M

    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?