After confidentially filing for a public offering a few months ago, software company Sprinklr is moving forward with a public S-1 that delves into all of the details of its forthcoming IPO.
The public S-1 includes information on the company's financials as well as a price point and projected date for the IPO. Here's what Sprinklr is shooting into the market.
Sprinklr releases target price range for upcoming IPO.
With 19 million Class A common shares (plus about 231 million Class B common shares) expected to hit the market, Sprinklr is pricing each one between $18 and $19. A firm price for these shares will be available closer to the IPO debut date.
Ragy Thomas has been the CEO of Sprinklr since he founded it in 2009. The software company delivers customer experience management solutions inclusive of artificial intelligence, advertising, research, development, and more. Thomas actually launched the company in a spare bedroom in his New Jersey home. About four months after the official launch, Sprinklr got its first customer. Now, the company serves blue-chip brands like Microsoft, Cisco, and Nike.
The company's chief financial officer, Chris Lynch, has a strong background. This is crucial given his role in the company's transition to the public market. The underwriters include Morgan Stanley, J.P. Morgan, Citigroup, Wells Fargo Securities, and Barclays.
Sprinklr's IPO appears overvalued.
Overall, Sprinklr hopes to achieve an IPO valuation of nearly $5 billion based on Class A and B common stock. With many companies vying for multi-billion-dollar IPOs these days, Sprinklr's valuation provides potential for volatility. However, recent revenue reports that the company released through their registration statement with the SEC show a fairly stable revenue growth.
A peek at Sprinklr's recent revenue metrics
What do the revenue metrics look like? For Sprinklr, the news is good. The company's financials suggest that it has seen a 19 percent increase in revenue, which brings it to $111 million for the three months ending April 30.
Despite the revenue increase, Sprinklr is still at a net loss. A lack of profit isn't unheard of in the IPO space, but it's definitely something to watch. Currently, the losses are at $14.7 million in the red, which is a widening expanse from the previous $11.2 million. Sprinklr's position in the subscription-based payment space could help it achieve profitability in the future, but it isn't guaranteed and remains a risk factor in the Sprinklr IPO.
Sprinklr has a ticker symbol set aside.
Expecting to list on the NYSE, Sprinklr plans to use the ticker "CXM." This aligns with its products and services as a customer experience management software firm.
Looking ahead to the Sprinklr IPO date
According to Sprinklr, the approximate date of commencement for the proposed sale to the public will occur "as soon as practicable after this registration statement is declared effective." For investors, this could mean getting the chance to dive in on CXM stock sooner rather than later. Reports suggest it will come as early as next week.
Sprinklr will likely release an official debut date around the same time it announces a firm share price (likely around $18.50). The company will have some interpersonal controversy to go up against, but the market might still be able to sway CXM in the green.