NASDAQ$SPT

Sprout Social Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sprout Social's Q1 2021 financial results exceeded guidance, with revenue growth and positive free cash flow achieved.

Sprout Social announced strong Q1 2021 results, exceeding guidance with a 34% increase in total revenue to $40.8 million and the addition of a record number of net-new customers. The company also achieved positive free cash flow for the first time and raised its 2021 guidance.

  • Total revenue increased by 34% year-over-year to $40.8 million.
  • The number of customers grew to 28,122 as of March 31, 2021.
  • GAAP operating loss improved to ($6.2) million, compared to ($10.9) million in the first quarter of 2020.
  • Company generated positive free cash flow for the first time, reaching $3.4 million.

Headline financials

Total Revenue

$40.8M

Previous: $30.5M+33.7%
EPS (adj)

-$0.05

Previous: -$0.14+64.3%
Customers > $50K ARR

3.5K

Previous: 2.4K+46.2%
Capital Expenditures

-$173K

Previous: -$313K+44.7%
Free Cash Flow

-$6.54M

Previous: -$10.8M+39.4%
Net Income

-$6.37M

Previous: -$10.5M+39.2%
Operating Income

-$6.22M

Previous: -$10.9M+43.2%
Gross Profit

$30.8M

Previous: $22.3M+38.0%
Cash & Equivalents

$102M

Previous: $137M-25.5%
Total Assets

$241M

No prior period

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$40.8M

Q1 2021+33.7%vs Q1 2020
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Sprout Social · $40.8M total across 2 segments · Q1 2021

  • Subscription
    $40.4M+33.1%
  • Professional services and other
    $463K+124.8%

Forward guidance

For Q2 2021, Sprout Social expects total revenue between $43.0 and $43.1 million, representing 37% growth. Non-GAAP operating loss is projected between ($5.4) million and ($5.0) million, with a non-GAAP net loss per share of between ($0.10) and ($0.09). For the full year 2021, the company updated guidance to total revenue between $176 and $177 million, representing 32% to 33% growth. Non-GAAP operating loss is expected between ($18.5) and ($18.0) million, and non-GAAP net loss per share is projected between ($0.35) and ($0.34).

Tailwinds

  • Total revenue growth of 37% is expected for Q2 2021.
  • Full year revenue is projected to grow 32% to 33%.
  • Operating margin is expected to improve by more than 500bps year-over-year.
  • Revenue between $43.0 and $43.1 million is expected in Q2 2021.
  • Full year revenue between $176 and $177 million is expected.

Headwinds

  • Non-GAAP operating loss between ($5.4) million and ($5.0) million is expected for Q2 2021.
  • Non-GAAP net loss per share of between ($0.10) and ($0.09) is expected for Q2 2021.
  • Non-GAAP operating loss between ($18.5) and ($18.0) million is expected for the full year 2021.
  • Non-GAAP net loss per share of between ($0.35) and ($0.34) is expected for the full year 2021.
  • Financial outlook is subject to change based on various assumptions and external factors, including the impact of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.9%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+4.8%

Avg return

30 days after

52%

13 / 25 earnings

Positive

+26.8%

Q1 2020

Best reaction

-42.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.0%-7.2%+6.5%
Q4 2025-9.6%-5.1%-22.2%
Q3 2025-3.6%+0.9%+4.5%
Q1 2025+9.5%+11.0%-0.4%
Q4 2024+3.1%-1.1%-17.4%
Q3 2024-8.9%-1.8%+10.6%
Q2 2024-15.7%-21.9%-20.4%
Q1 2024-42.3%-45.7%-34.6%
Q4 2023-5.2%-1.3%-7.7%
Q3 2023+9.7%+16.4%+40.2%
Q2 2023-11.2%-11.4%+0.2%
Q1 2023-15.3%-21.3%-14.0%
Q4 2022+4.0%+2.1%+6.4%
Q3 2022+1.9%+12.9%+31.9%
Q2 2022+13.4%+18.2%+10.8%
Q1 2022-9.3%-19.2%-7.8%
Q4 2021+1.5%+22.1%+54.3%
Q3 2021-2.7%-3.0%-20.6%
Q2 2021+13.5%+18.0%+39.1%
Q1 2021-5.6%-2.8%+3.0%
Q4 2020+9.0%-3.2%-21.8%
Q3 2020-4.2%+5.3%+1.3%
Q2 2020+1.3%-5.0%+14.8%
Q1 2020+26.8%+36.6%+88.3%
Q4 2019+7.5%+8.6%-24.5%
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro