NASDAQ$SPT

Sprout Social Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Sprout Social's financial performance in Q1 2024, marked by revenue growth and strategic leadership transition.

Sprout Social reported a 29% increase in revenue, reaching $96.8 million in Q1 2024. The company grew its customer base with over $10,000 and $50,000 in ARR, while also announcing a CEO succession plan.

  • Revenue increased by 29% year-over-year, reaching $96.8 million.
  • The number of customers contributing over $10,000 in ARR grew by 24% year-over-year.
  • The number of customers contributing over $50,000 in ARR grew by 44% year-over-year.
  • CEO succession plan was announced, with Ryan Barretto succeeding Justyn Howard.

Headline financials

Total Revenue

$96.8M

Previous: $75.2M+28.7%
EPS

-$0.24

Previous: $0.06-500.0%
Customers > $10K ARR

8.8K

No prior period
Customers > $50K ARR

1.4K

Previous: 1.0K+43.7%
Capital Expenditures

-$1.09M

Previous: -$383K-185.1%
Free Cash Flow

-$14.7M

Previous: -$10.6M-37.9%
Net Income

-$13.6M

Previous: -$10.3M-32.4%
Operating Income

-$13.3M

Previous: -$11.9M-11.3%
Gross Profit

$74.4M

Previous: $58.3M+27.5%
R&D Expense

$23.8M

No prior period

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$96.8M

Q1 2024+28.7%vs Q1 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Sprout Social · $85.5M total across 2 segments · Q3 2023

  • Subscription
    $84.8M+31.4%
  • Professional services and other
    $730K-5.3%

Forward guidance

For Q2 2024, Sprout Social anticipates revenue between $98.5 million and $98.6 million, with non-GAAP operating income between $4.6 million and $5.0 million, and non-GAAP net income per share between $0.07 and $0.08. For the full year 2024, revenue is projected to be between $405.0 million and $406.0 million, with non-GAAP operating income between $28.0 million and $29.0 million, and non-GAAP net income per share between $0.45 and $0.46.

Tailwinds

  • Expects revenue growth of greater than 24% for Q2 2024.
  • Anticipates non-GAAP operating income between $4.6 million and $5.0 million for Q2 2024.
  • Projects non-GAAP net income per share between $0.07 and $0.08 for Q2 2024.
  • Forecasts full year 2024 revenue between $405.0 million and $406.0 million.
  • Estimates full year 2024 non-GAAP operating income between $28.0 million and $29.0 million.

Headwinds

  • Q1 underperformance was factored into the reduced 2024 revenue forecast.
  • Enterprise seasonality was underestimated, impacting Q1 results.
  • Sales execution headwinds were self-induced during Q1.
  • There is no assurance that the company will achieve the projected results.
  • The company does not provide guidance for operating loss, net loss per share, or operating margin.

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 2024

Historical avgQ1 2024

-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

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