March 5, 2024


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5 things to know about Sprinklr, the $3B startup planning New York’s next technology IPO

A modern-day feedback box: Sprinklr describes its software as a customer experience management platform, helping companies monitor online feedback and coordinate responses. In addition, it helps with marketing. CXM will be its trading ticker. Sprinklr helped Chick-fil-A monitor online backlash in 2016, after a switch from its Original BBQ sauce to a Smokehouse BBQ flavor condiment left the chain’s loyal fans outraged. Petitions circulated online around the trend #BringBackTheBBQ. Chick-fil-A, indeed, brought the sauce back and used Sprinklr’s software to coordinate a marketing campaign around its return, including outreach to hundreds of customers directly. Companies are struggling to monitor the dozens of outlets where customers leave feedback or ask questions, Sprinklr CEO Ragy Thomas wrote in the prospectus filing, creating opportunity for the company.

Revenue boost: Sprinklr’s revenue reached $387 million last year, up 20% from the 2019 totals, according to the firm’s IPO prospectus filing. The bulk of that revenue comes from the subscription fees Sprinklr collects from corporations for use of its software. That includes some big fish. More than half of the Fortune 100 companies, including McDonald’s, Honda and Samsung, use Sprinklr’s software in some capacity, according to the company’s prospectus filing. The firm has more than 1,000 individual clients, but half of its subscription revenue is driven by about 70 customers, who pay $1 million or more each year for the software, according to Sprinklr’s SEC filing. Despite the revenue boost, Sprinklr’s net loss climbed slightly, from $39 million in 2019 to $41 million last year. Sprinklr’s SEC filing said the company would keep spending big on marketing and improving its technology, which could continue to eat up profits.

Origin story: Like Apple and Steve Jobs’ garage, Sprinklr plays up its origin story—founded in 2009 out of the spare bedroom in Thomas’ New Jersey home. The company now employs more than 2,000 people, headquartered out of a 32,000-square-foot office in Midtown. Thomas was previously the president of Epsilon Interactive Services, a marketing firm. He serves on the board for Tech:NYC, a technology industry group.

Cashing in: San Francisco-based private-equity firm Hellman & Friedman holds the largest stake in Sprinklr, following its $200 million investment last fall. Sprinklr’s other backers include Singapore-based investment firm Temasek Holdings, Battery Ventures and ICONIQ Capital. The company has raised about $430 million from investors in its 12 years in business.

Next in line:  The market for technology companies going public has been strong for the past 12 months—particularly those making software for businesses. Sprinklr is the latest New York firm to cash in, following the debuts of Squarespace, UIPath, DigitalOcean, Olo and Oscar Health. New York firms made nine initial public offerings in 2020—three were from technology companies. New York is outpacing that number this year.