NEW YORK - Sprinklr (NYSE: CXM), a prominent enterprise software company in customer experience management, today announced the appointment of Rory P. Read as its new President, CEO, and Board Member. Read takes the helm effective today, as the company embarks on its next growth phase.
Rory Read, with a notable career spanning global technology leadership roles, steps into the position succeeding Ragy Thomas. Thomas transitions from Co-CEO to Advisor to the CEO and maintains his role as Founder and Chairman of the Board. Concurrently, Trac Pham steps down from his Co-CEO and Board position to serve in an advisory capacity.
Read's extensive background includes executive tenures at Vonage, Dell, Boomi, Virtustream, AMD (NASDAQ:AMD), IBM (NYSE:IBM), and Lenovo. His leadership was instrumental during the landmark Dell-EMC integration, establishing Dell Technologies (NYSE:DELL) as a leading tech entity. He joins Sprinklr after a successful stint as CEO and President of Vonage, which Ericsson (BS:ERICAs) acquired for $6.2 billion in July 2022.
In a statement, Ragy Thomas praised Read's transformative leadership and his proven ability to drive substantial value for stakeholders. Thomas expressed confidence in Read's potential to advance Sprinklr's mission and scale the company's growth, leveraging its AI-powered platform to enhance customer experiences.
Read shared his enthusiasm for the opportunity to lead Sprinklr, emphasizing his commitment to strategic vision and value delivery for customers. He anticipates working closely with Thomas, the Board, and the global Sprinklr team to realize the company's potential as an industry-changing enterprise software firm.
Sprinklr, headquartered in New York City, serves over 1,800 enterprises worldwide, including more than 60% of the Fortune 100. The company's Unified-CXM platform, powered by advanced AI, aims to deliver consistent and human customer experiences across various modern channels.
This leadership change is poised to guide Sprinklr through a transformative period, as indicated by the company's forward-looking statements. However, these statements also acknowledge inherent risks and uncertainties that could affect the anticipated benefits of Read's appointment.
The information for this article is based on a press release statement.
In other recent news, Sprinklr Inc. has been facing several challenges in the genAI and CaaS landscape. Barclays (LON:BARC) has downgraded Sprinklr's shares from Overweight to Underweight due to these concerns. Other analyst firms, including KeyBanc Capital Markets and Rosenblatt, have also adjusted their outlooks on Sprinklr, reducing their price targets but maintaining Overweight and Buy ratings respectively.
Despite these challenges, Sprinklr reported an 11% year-over-year increase in total revenue, reaching $197.2 million for the second quarter of fiscal year 2025. However, the company's operating margins and per-share earnings fell short of projections.
Sprinklr continues to add new customers such as UBS, Ford (NYSE:F), T-Mobile, Grupo Bimbo, and Planet Fitness (NYSE:PLNT), showcasing its focus on refining its execution and go-to-market strategy. For the third quarter, Sprinklr projects total revenue to be between $196 million and $197 million, with subscription revenue estimated at $177.5 million to $178.5 million. These are some of the recent developments impacting Sprinklr's performance in the market.
InvestingPro Insights
As Sprinklr (NYSE: CXM) welcomes Rory P. Read as its new President and CEO, investors may be keen to understand the company's financial position and market performance. According to InvestingPro data, Sprinklr boasts a market capitalization of $1.93 billion, reflecting its significant presence in the enterprise software space.
The company's revenue growth remains robust, with a 14.72% increase over the last twelve months, reaching $773.7 million. This growth aligns with Sprinklr's expanding customer base and the increasing demand for its Unified-CXM platform. Moreover, the company's gross profit margin stands at an impressive 74.22%, underscoring the efficiency of its business model.
InvestingPro Tips highlight that Sprinklr holds more cash than debt on its balance sheet, which could provide financial flexibility as Read steers the company through its next growth phase. Additionally, management has been aggressively buying back shares, potentially signaling confidence in the company's future prospects.
However, investors should note that Sprinklr's stock has taken a significant hit over the last six months, with a price total return of -36.3%. This decline may present an opportunity for new investors, especially considering that analysts predict the company will be profitable this year.
For those seeking a deeper understanding of Sprinklr's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's potential under its new leadership.
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