Sprout Social Inc. · Q2 2021 earnings

Briefing

Sprout Social's Q2 2021 financial results exceeded guidance, showcasing significant revenue growth and customer acquisition.

Sprout Social reported a strong second quarter in 2021, with revenue reaching $44.7 million, a 42% increase compared to the previous year. The company achieved its first ever quarterly non-GAAP profit and positive free cash flow, highlighting the strength of its business model and efficient execution. Sprout Social also increased its customer base to 29,612, with notable growth in customers contributing over $10,000 in ARR.

• Revenue increased by 42% year-over-year, reaching $44.7 million.
• ARR grew by 45% year-over-year, totaling $189.1 million.
• GAAP operating loss improved to ($5.3) million, compared to ($8.3) million in the second quarter of 2020.
• Customer base expanded to 29,612, demonstrating continued market penetration.

Headline financials

Revenue & EPS history

For the third quarter of 2021, Sprout Social expects total revenue between $47.3 and $47.4 million, representing a 41% growth rate. The company anticipates a non-GAAP operating loss between ($4.3) million and ($3.9) million and a non-GAAP net loss per share between ($0.08) and ($0.07). For the full year 2021, Sprout Social updates guidance to reflect total revenue between $182 to $182.6 million, or overall growth of roughly 37%.