12:38 PM EDT, 09/05/2024 (MT Newswires) -- Sprinklr ( CXM ) reported another challenging quarter in Q2, with updated guidance implying only modest H2 revenue growth and continuing down margins, Oppenheimer said in a note Thursday.

Oppenheimer said Sprinklr ( CXM ) faced pressures from macro challenges, churn and renewals, inconsistent execution, and a $10.1 million credit loss charge, driving down Q2 margins and a reduction in the FY2025 subscription revenue and operating margin guidance.

"Sprinklr's ( CXM ) top line and margin growth trajectory remains impaired from numerous issues that if transitory will take several quarters and/or a cyclical recovery to resolve," the report said. "However, the issues could be structural not transitory with AI technologies slowing, shrinking, and/or replacing IT spending from customer service and/or marketing analytics suppliers.

Oppenheimer maintained its perform rating on the stock.

Shares of the company were down more than 7% in recent trading.

Price: 7.92, Change: -0.68, Percent Change: -7.86