Sprinklr: Failing To Build Any Traction Around AI

Gary Alexander 34.42K Followers Follow Summary Sprinklr, Inc. continues to exhibit decelerating growth rates and uninspiring AI-driven momentum, despite a sector-wide software rebound. CXM's subscription revenue growth is slowing, and backlog growth lags peers, signaling weak customer commitment and limited future revenue visibility. Gross margin compression and increased AI-related costs are undermining profitability, with little evidence of incremental revenue from new features. Despite a low valuation, CXM faces sharp competition and risks becoming a value trap as performance deteriorates and scale remains elusive. J Studios/DigitalVision via Getty Images One of the most consequential themes in the stock market that has defined trading over the past few months is the sharp rebound in software stocks. Investors have pushed fears of a "SaaSpocalypse" aside and are now This article was written by Gary Alexander 34.42K Followers Follow With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.