NASDAQ$SPT

Sprout Social Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Sprout Social's Q4 2020 financial results exceeded guidance, demonstrating strong growth and customer acquisition.

Sprout Social reported Q4 2020 total revenue of $37.3 million, a 33% increase compared to Q4 2019. The company grew its customer base to 26,718 and achieved a dollar-based net retention rate greater than 110%.

  • Total revenue increased by 33% to $37.3 million compared to Q4 2019.
  • GAAP operating loss was ($5.8) million, improved from ($25.9) million in Q4 2019.
  • The number of customers grew to 26,718 as of December 31, 2020.
  • Dollar-based net retention rate in Q4 of 2020 was greater than 110%.

Headline financials

Total Revenue

$37.3M

Previous: $28.1M+32.7%
EPS (adj)

-$0.06

Previous: -$0.25+76.0%
Free Cash Flow

-$2M

Previous: -$4.92M+59.3%
Net Income

-$5.9M

Previous: -$25.9M+77.2%
Operating Income

-$5.8M

Previous: -$25.9M+77.6%
Cash & Equivalents

$115M

Previous: $135M-15.4%
Total Assets

$240M

Previous: $190M+26.4%

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$37.3M

Q4 2020+32.7%vs Q4 2019
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Revenue by segment

Sprout Social · $37.3M total across 2 segments · Q4 2020

  • Subscription
    $36.9M+32.0%
  • Professional services and other
    $431K+131.7%

Forward guidance

For Q1 2021, Sprout Social expects total revenue between $39.6 and $39.7 million, representing 30% growth. For the full year 2021, the company anticipates total revenue between $172 and $173 million, also projecting 30% growth.

Tailwinds

  • Expects total revenue between $39.6 and $39.7 million for Q1 2021, or overall growth of 30%.
  • Estimates organic growth rate will be 100-300bps faster than the overall growth rate in Q1.
  • Anticipates non-GAAP operating loss between ($5.4) million and ($5.0) million for Q1 2021.
  • Projects non-GAAP net loss per share of between ($0.11) and ($0.10) for Q1 2021.
  • Forecasts total revenue between $172 to $173 million for full year 2021, or overall growth of 30%.

Headwinds

  • Expects non-GAAP operating loss between ($22.0) and ($19.0) million for full year 2021.
  • Estimates non-GAAP net loss per share of between ($0.40) and ($0.37) for full year 2021.
  • The company's outlook is based on assumptions subject to change and outside of their control.
  • Potential impact of COVID-19 on financial performance and customer demand.
  • Unavailability of reliable estimates for certain items makes reconciliation of GAAP measures difficult.

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 2020

Historical avgQ4 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

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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