NASDAQ$SPT

Sprout Social Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Sprout Social's Q4 2019 results reflected revenue growth and increasing customer base.

Sprout Social reported a 26% year-over-year increase in total revenue, reaching $28.1 million, and a GAAP net loss of $25.9 million for the fourth quarter of 2019. The company's customer base grew to 23,693, with 2,185 customers contributing over $10,000 in ARR.

  • Total revenue increased by 26% year-over-year to $28.1 million.
  • GAAP operating loss was ($25.9) million, impacted by a $20.0 million stock-based compensation charge.
  • The number of customers grew to 23,693.
  • Free cash flow improved to ($4.9) million, or (17%) of revenue.

Headline financials

Total Revenue

$28.1M

Previous: $22.3M+26.3%
EPS (adj)

-$0.25

Previous: -$0.24-4.7%
Customers > $50K ARR

23.7K

Previous: 21.1K+12.1%
Free Cash Flow

-$4.92M

No prior period
Net Income

-$25.9M

Previous: -$3.97M-550.5%
Operating Income

-$25.9M

Previous: -$3.89M-565.7%
Cash & Equivalents

$135M

No prior period
Total Assets

$190M

No prior period

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$28.1M

Q4 2019+26.3%vs Q4 2018
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Sprout Social · $28.1M total across 2 segments · Q4 2019

  • Subscription
    $28M
  • Professional services and other
    $186K

Forward guidance

For the first quarter of 2020, Sprout Social expects total revenue between $29.4 million and $29.9 million, and a non-GAAP net loss per share of between ($0.22) and ($0.20). For the full year 2020, the Company expects total revenue between $131.7 and $133.7 million, and a non-GAAP net loss per share of between ($0.57) and ($0.50).

Tailwinds

  • Total revenue between $29.4 million and $29.9 million for Q1 2020.
  • Full year 2020 total revenue between $131.7 and $133.7 million.

Headwinds

  • Non-GAAP operating loss between ($11.2) million and ($10.2) million for Q1 2020.
  • Non-GAAP net loss per share of between ($0.22) and ($0.20) for Q1 2020.
  • Full year 2020 non-GAAP operating loss between ($29.3) and ($25.3) million.
  • Full year 2020 non-GAAP net loss per share of between ($0.57) and ($0.50).

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 Q4 2019

Historical avgQ4 2019

-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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