NASDAQ$SPT

Sprout Social Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Sprout Social's Q3 2024 results were announced, showcasing revenue growth and increased adoption by larger customers.

Sprout Social reported a solid third quarter with a 20% increase in revenue and a 31% growth in cRPO. The company is focused on product leadership and expanding its competitive position within the Enterprise segment.

  • Revenue increased by 20% compared to the third quarter of 2023, reaching $102.6 million.
  • GAAP operating loss improved to ($16.9) million, compared to ($24.2) million in the third quarter of 2023.
  • The number of customers contributing over $10,000 in ARR grew by 12% year-over-year, reaching 9,119 customers.
  • The number of customers contributing over $50,000 in ARR increased by 29% year-over-year, reaching 1,610 customers.

Headline financials

Total Revenue

$103M

Previous: $85.5M+20.0%
EPS

-$0.30

Previous: -$0.01-2900.0%
Current RPO

$221M

No prior period
Customers > $10K ARR

9.1K

Previous: 8.1K+12.4%
Customers > $50K ARR

1.6K

Previous: 1.3K+28.5%
Capital Expenditures

-$2.06M

Previous: -$1.44M-42.8%
Free Cash Flow

-$19.1M

Previous: -$24.5M+21.7%
Net Income

-$17.1M

Previous: -$23M+25.8%
Operating Income

-$16.9M

Previous: -$24.2M+30.3%
Gross Profit

$79.4M

Previous: $65.3M+21.5%
R&D Expense

$26.3M

Previous: $20.1M+31.0%

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$103M

Q3 2024+20%vs Q3 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 the fourth quarter of 2024, Sprout Social anticipates total revenue between $106.3 million and $107.1 million, and non-GAAP operating income between $8.7 million and $9.5 million. The company projects non-GAAP net income per share of between $0.15 and $0.16 based on approximately 57.6 million weighted-average shares outstanding.

Tailwinds

  • Total revenue between $106.3 million and $107.1 million.
  • Non-GAAP operating income to be between $8.7 million and $9.5 million.
  • Non-GAAP net income per share of between $0.15 and $0.16 based on approximately 57.6 million weighted-average shares of common stock outstanding.
  • Total revenue to be between $405.1 million and $405.9 million for the full year 2024.
  • Non-GAAP operating income between $27.5 million and $28.3 million for the full year 2024.

Headwinds

  • The Company’s fourth quarter and 2024 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control.
  • If actual results vary from these assumptions, the Company’s expectations may change.
  • There can be no assurance that the Company will achieve these results.
  • The Company does not provide guidance for operating loss.
  • The Company does not provide a reconciliation between its forecasted non-GAAP operating income, non-GAAP net income per share and non-GAAP operating margin and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items.

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 2024

Historical avgQ3 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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