Sprinklr, Inc.CXM

Sprinklr, Inc. Earnings Per Share Disclosure

10-KFiled Mar 21, 20252 min read
Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted net income (loss) per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units and other awards. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.
The Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income (loss) per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.
The following table sets forth the computation of basic and diluted net income (loss) per share:
Year Ended January 31,
(in thousands, except per share data)
202520242023
Net income (loss) per share – basic:
Numerator:
Net income (loss)
$121,609 $51,403 $(55,742)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic
260,241269,974259,530
Net income (loss) per common share, basic
$0.47 $0.19 $(0.21)
Net income (loss) per share - diluted:
Numerator:
Net income (loss)$121,609 $51,403 $(55,742)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic260,241 269,974 259,530 
Weighted-average effect of diluted securities:
Stock options7,56311,749 — 
PSUs
244 — — 
RSUs
6,7254,783 — 
Common stock warrants—587 — 
Weighted-average shares outstanding used in computing net income (loss) per share, diluted274,773 287,093 259,530 
Net income (loss) per common share, diluted$0.44 $0.18 $(0.21)
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Year Ended January 31,
(in thousands)202520242023
Stock options4,870 2,595 33,049 
PSUs1,314 780 1,450 
RSUs2,872 415 9,400 
ESPP100 91 168 
Warrants to purchase common stock39 — 2,500 
Total shares excluded from net income (loss) per share9,195 3,881 46,567 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance