NEW YORK - Sprinklr, a global leader in unified customer experience management, has partnered with social media platform Reddit, marking a significant expansion in their strategic alliance. This collaboration encompasses both Reddit’s Data API and the newly launched Advertising API, with Sprinklr becoming the inaugural partner.
The integration with Reddit's Data API will allow Sprinklr's enterprise customers to tap into near real-time public conversations on Reddit, displaying relevant posts and comments within Sprinklr’s customer dashboard. This alliance aims to provide brands with deeper insights into customer feedback, sentiment, and trends, enhancing their ability to monitor brand reputation and drive business growth.
Additionally, as the first official partner for Reddit's Advertising API, Sprinklr will enable its customers to leverage the full suite of Reddit’s advertising options. This move is intended to streamline the integration of Reddit into the advertising strategies and campaigns of enterprise-level brands.
Jim Tomanchek, Sprinklr’s Vice President of Global Partnerships, emphasized the importance of this partnership in the evolving privacy landscape, noting that Sprinklr is the only platform offering a unified brand management approach on Reddit. Jonathan Flesher, Vice President of Business Development at Reddit, also highlighted the value of contextually-rich discussions on the platform for businesses seeking to understand and engage with their audience.
Sprinklr's platform, which is utilized by many of the world's largest brands, combines teams, tools, and data to provide a comprehensive approach to customer-facing operations. The company boasts a strong relationship with global brands, including more than 60% of the Fortune 100.
Reddit, known for its vibrant community-driven content, hosts over 100,000 active communities and sees approximately 82 million daily active visitors. The platform is recognized for facilitating open and authentic conversations among its users.
This partnership is expected to offer Sprinklr's customers unique opportunities to integrate Reddit as a core element of their brand and marketing strategies. The announcement is based on a press release statement.
In other recent news, Sprinklr Inc. has been the subject of several major adjustments following its first fiscal quarter results for 2025. Rosenblatt Securities reduced its price target for Sprinklr to $14 from $18, maintaining a Buy rating despite the company's lackluster results and decreased revenue projections.
Wells Fargo and DA Davidson also adjusted their outlooks, reducing their price targets to $10 and $9 respectively, due to concerns over Sprinklr's growth and execution challenges. Citi and JPMorgan followed suit, reducing their price targets to $11 citing declines in key performance metrics and challenging demand conditions.
Sprinklr's first fiscal quarter saw a 13% increase in total revenue, reaching $196.0 million, and a 12% rise in subscription revenue to $177.4 million. Still, the company's revised revenue guidance for FY25 fell below expectations by approximately 3%. Amid these developments, Sprinklr has made notable executive moves, including the appointment of Trac Pham as co-CEO and Amitabh Misra as its new Chief Technology Officer.
Despite the adjustments, analysts from Rosenblatt, JPMorgan, and KeyBanc maintain a positive outlook for Sprinklr. They anticipate a return to consistent revenue growth and an increase in stock valuation as the company refines its go-to-market strategy. These recent developments provide investors with a fresh perspective on Sprinklr's current situation and future prospects.
InvestingPro Insights
Sprinklr (CXM) is currently navigating a dynamic market environment, and recent data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $2.93 billion and a high gross profit margin of 75.5% in the last twelve months as of Q4 2024, Sprinklr demonstrates a strong capability to generate revenue efficiently.
InvestingPro Tips highlight that Sprinklr holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, suggesting a stable financial position which could be reassuring for investors considering the company's strategic initiatives, such as the partnership with Reddit.
Still, it is worth noting that Sprinklr's stock has been under pressure, trading near its 52-week low and experiencing a significant 35.09% price drop over the last six months. This could indicate a potential opportunity for investors to consider the stock at a lower entry point, especially given that analysts predict the company will be profitable this year.
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