NASDAQ$SPT
Sprout Social Inc. · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Sprout Social's Q3 2020 financial results were announced, exceeding the guidance range and leading to raised 2020 guidance.
Sprout Social reported a strong third quarter with total revenue of $33.7 million, a 27% increase year-over-year. The company grew its customer base to 25,556 and saw significant growth in customers contributing over $10,000 in ARR. Sprout Social also raised its full year 2020 guidance.
- Total revenue was $33.7 million, up 27% compared to Q3 2019.
- Total ARR was $141.9 million, up 30% compared to Q3 2019.
- Grew number of customers to 25,556 as of September 30, 2020, up from 23,066 customers as of September 30, 2019.
- GAAP net loss was ($7.0) million, compared to ($5.0) million in the third quarter of 2019.
Headline financials
Revenue & EPS history
Sprout Social · Revenue · Quarterly
$33.7M
Revenue by segment
Sprout Social · $33.7M total across 2 segments · Q3 2020
- Subscription$33.4M—99.1%
- Professional services and other$296K—0.9%
Forward guidance
For the fourth quarter of 2020, the Company currently expects: Total revenue between $35.8 and $35.9 million, or overall growth of 27%. We expect that our organic growth rate will exceed our reported growth rate by a mid single digit percentage point range. Non-GAAP operating loss between ($6) million and ($5.5) million. Non-GAAP net loss per share of between ($0.11) and ($0.10) based on approximately 53.1 million weighted average basic shares of common stock outstanding.
Tailwinds
- Total revenue between $35.8 and $35.9 million, or overall growth of 27%.
- Organic growth rate will exceed reported growth rate by a mid single digit percentage point range.
- Non-GAAP operating loss between ($6) million and ($5.5) million.
- Non-GAAP net loss per share of between ($0.11) and ($0.10)
- Total revenue between $131.4 to $131.5 million, or overall growth of 28%.
Headwinds
- Non-GAAP operating loss between ($6) million and ($5.5) million.
- Non-GAAP net loss per share of between ($0.11) and ($0.10)
- Non-GAAP operating loss between ($23.6) and ($23.1) million.
- Non-GAAP net loss per share of between ($0.45) and ($0.44)
- The Company’s fourth quarter and 2020 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 COVID-19 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 20 quarterly earnings reports · overlaid with Q3 2020
-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
| Quarter | Report date | Reaction (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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