NASDAQ$SPT

Sprout Social Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Sprout Social's Q1 2022 financial results were announced, exceeding the guidance range with strong ARR growth.

Sprout Social reported a strong first quarter in 2022, with revenue up 41% year-over-year to $57.4 million and ARR up 39% to $239.1 million. The company exceeded its guidance range and raised its full-year outlook, expecting continued growth and improved efficiency.

  • Total revenue was $57.4 million, a 41% increase compared to Q1 2021.
  • ARR reached $239.1 million, up 39% year-over-year.
  • The number of customers grew to 32,800, representing a 17% increase year-over-year.
  • The company partnered with Salesforce and announced a $100,000 annual contribution to Howard University.

Headline financials

Total Revenue

$57.4M

Previous: $40.8M+40.7%
EPS (adj)

-$0.03

Previous: -$0.05+40.0%
Customers > $50K ARR

692

Previous: 3.5K-80.3%
Capital Expenditures

-$313K

Previous: -$173K-80.9%
Free Cash Flow

-$10.1M

Previous: -$6.54M-53.9%
Net Income

-$9.76M

Previous: -$6.37M-53.2%
Operating Income

-$9.61M

Previous: -$6.22M-54.5%
Gross Profit

$43.4M

Previous: $30.8M+40.9%
Cash & Equivalents

$81.7M

Previous: $102M-20.2%
Total Assets

$270M

Previous: $241M+12.1%

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$57.4M

Q1 2022+40.7%vs Q1 2021
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Sprout Social · $57.4M total across 2 segments · Q1 2022

  • Subscription
    $56.8M+40.7%
  • Professional services and other
    $649K+40.2%

Forward guidance

For Q2 2022, Sprout Social expects total revenue between $60.2 million and $60.3 million, and for the full year 2022, revenue between $252 million and $253 million.

Tailwinds

  • Total revenue between $60.2 million and $60.3 million for Q2 2022, representing 35% year-over-year growth.
  • Non-GAAP operating loss between ($3.2) million and ($3.0) million for Q2 2022.
  • Non-GAAP net loss per share of approximately ($0.06) for Q2 2022.
  • Total revenue between $252 million and $253 million for the full year 2022, representing 34% to 35% year-over-year growth.
  • Non-GAAP operating loss between ($6.4) million and ($5.8) million for the full year 2022.

Headwinds

  • Non-GAAP operating loss between ($3.2) million and ($3.0) million for Q2 2022.
  • Non-GAAP net loss per share of approximately ($0.06) for Q2 2022.
  • Non-GAAP operating loss between ($6.4) million and ($5.8) million for the full year 2022.
  • Non-GAAP net loss per share of between ($0.13) and ($0.12) for the full year 2022.
  • Second quarter and 2022 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control, including the impact of the ongoing COVID-19 pandemic on our financial performance and customer demand.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-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+8.8%-7.4%
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

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