Sprinklr offers an asymmetric turnaround opportunity at 1.4x EV/Sales, but upside depends on repairing services execution and converting AI-native contact-center adoption into durable growth.
Overview
Sprinklr operates a Unified-CXM enterprise SaaS platform that combines customer support, marketing automation, digital advertising, social engagement, and consumer intelligence in one codebase. It serves more than 1,800 customers, including over 60% of the Fortune 100, and generates 91.2% of quarterly revenue from multi-year subscriptions. Geographic exposure is diversified, with LTM revenue of $871.18 million: the United States contributed $436.40 million, or 50.1%, and EMEA contributed $314.72 million, or 36.1%. **The core SaaS model remains cash generative but growth is slow:** Q2 FY27 revenue rose 1% to $213.7 million, subscription revenue increased 3% to $194.8 million, and first-half FCF reached $79 million. Services revenue fell to $18.9 million and services gross margin dropped to negative 22%, reducing non-GAAP operating margin to 15%. **Valuation is inexpensive at approximately 1.53x EV/Sales**, based on approximately $1.33 billion of enterprise value and FY27 midpoint revenue guidance. Catalysts include CEO-led services remediation, subscription acceleration, RPO growth to $1.03 billion, and contact-center AI adoption; the principal debate is whether these catalysts can overcome slowing social-market growth and incumbent CCaaS competition.