Form 4: Battery Ventures Entities and Director Roger H. Lee Report Significant Sprinklr Share Distributions and Sale

Multiple Battery Ventures entities and director Roger H. Lee have reported a series of pro-rata, in-kind distributions of Sprinklr Class A Common Stock, alongside a sale of shares by a related trust, as detailed in a recent SEC Form 4 filing.

Summary

• Battery Ventures IX, L.P. (BV IX) distributed 3,000,000 shares of Sprinklr Class A Common Stock pro rata to its general and limited partners. Following this distribution, BV IX indirectly beneficially owns 8,570,734 shares.
• Battery Investment Partners IX, LLC (BIP IX) distributed 30,300 shares of Sprinklr Class A Common Stock pro rata to its members. Following this distribution, BIP IX indirectly beneficially owns 82,387 shares.
• Battery Partners IX, LLC (BP IX) received 867,088 shares from the BV IX distribution and subsequently distributed all 867,088 shares pro rata to its members, resulting in 0 direct beneficial ownership for BP IX after the transaction.
• The Lee Family Trust, of which Roger H. Lee is a co-trustee, sold 81,869 shares of Class A Common Stock at a weighted average price of $8.55 per share. The sales occurred in multiple transactions ranging from $8.49 to $8.69.
• Following the sale, The Lee Family Trust indirectly beneficially owns 82,500 shares.
• Other beneficial ownerships reported include 229,360 shares held directly by Roger H. Lee jointly with his spouse, 215,670 shares indirectly held by Battery Investment Partners Select Fund I, L.P., and 2,180,664 shares indirectly held by Battery Ventures Select Fund I, L.P.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. The majority of transactions are pro-rata distributions, which are neutral. However, the sale of shares by a trust associated with a director could be perceived as a minor negative signal, though the amount is not exceptionally large.

Positives

• The majority of transactions are pro-rata, in-kind distributions, which are a standard method for private equity firms to distribute holdings to their limited partners without implying a negative outlook on the company.

Negatives

• A sale of 81,869 shares by The Lee Family Trust, associated with a director and 10% owner, could be perceived by some investors as a minor negative signal, potentially indicating a lack of confidence, although the amount is relatively small compared to total holdings.

Risks

• The sale of shares by an insider (Roger H. Lee via The Lee Family Trust) could potentially influence investor sentiment if interpreted as a lack of confidence in Sprinklr's future performance, despite the stated nature of the distributions.

Future Outlook

NA

Management Comments

• NA

Industry Context

This Form 4 filing reflects routine insider transaction reporting for a publicly traded software company. The distributions by Battery Ventures entities are typical for private equity firms managing their portfolio exits or reallocations. The sale by a trust associated with a director is a common occurrence for personal financial planning, though it is always scrutinized by the market for potential signals about the company's prospects.

Comparison to Industry Standards

• NA

Related Party Transactions

• Pro-rata, in-kind distributions of Sprinklr shares from Battery Ventures IX, L.P. to its general partner (Battery Partners IX, LLC) and limited partners.
• Pro-rata, in-kind distributions of Sprinklr shares from Battery Investment Partners IX, LLC to its members.
• Pro-rata, in-kind distributions of Sprinklr shares from Battery Partners IX, LLC to its members.
• Sale of shares by The Lee Family Trust, of which Roger H. Lee (a director and 10% owner) is a co-trustee.

Stakeholder Impact

• Shareholders: Changes in the ownership structure, particularly the reduction in direct holdings by Battery Partners IX, LLC and the sale by The Lee Family Trust, could influence market perception and potentially the stock price. The distributions mean shares are now held by a broader set of Battery's LPs/members.

Next Steps

• NA

Key Dates

Keywords

Sprinklr, CXM, SEC Form 4, insider trading, beneficial ownership, Battery Ventures, share distribution, stock sale, Roger H. Lee, institutional investor, private equity