CXM - Sprinklr's Earnings Miss Points Toward An Extended And Uncertain Turnaround Period
2024-06-17 05:03:02 ET
Summary
- Sprinklr's stock fell after disappointing earnings, with management stepping away from 2027 guidance and creating a co-CEO position.
- The company is focusing on improving onboarding experiences, leadership upgrades, new product offerings, and pricing strategies as part of its turnaround plan.
- Despite challenges, Sprinklr's strong cash position and potential as an acquisition target suggest investors should hold shares and consider adding if/when the stock hits a rock bottom valuation.
A mud sandwich delivers bad news, the mud, between two pieces of bread to make the bad news seem more palatable. I bought into a mud sandwich from Sprinklr ( CXM ) last December after the stock crashed 33.5% post-earnings. The decline looked excessive given the encouraging long-term narrative from the company, especially reassurances like sticking to 2027 guidance despite acknowledging macro headwinds. Fast-forward to this month’s earnings disaster, the mud is so clearly bad that management left the bread in the pantry. Not only did management acknowledge ongoing macro headwinds but also talked of worsening operational issues and stepped away from 2027 guidance. A strange and surprising decision to create a co-CEO position in the midst of a hiring spree for new leadership failed to put a floor under the stock. CXM promptly fell 15.1% after a small rebound from a 17-month low....
Sprinklr's Earnings Miss Points Toward An Extended And Uncertain Turnaround Period