NASDAQ$SPT

Sprout Social Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Sprout Social had a strong Q4, exceeding guidance with significant year-over-year growth in revenue and ARR, driven by investments in market leadership and R&D.

Sprout Social reported Q4 2021 financial results, with total revenue of $53.3 million, a 43% increase year-over-year. The company's ARR reached $224.2 million, up 42% compared to the previous year. While GAAP operating and net losses were reported, the company saw positive net cash generated by operating activities and free cash flow.

  • Total revenue reached $53.3 million, a 43% increase year-over-year.
  • ARR grew to $224.2 million, up 42% compared to the fourth quarter of 2020.
  • GAAP operating loss was ($9.7) million, while non-GAAP operating loss was ($2.6) million.
  • The number of customers grew to 31,762, up 19% year-over-year.

Headline financials

Total Revenue

$53.3M

Previous: $37.3M+42.6%
EPS (adj)

-$0.05

Previous: -$0.06+16.7%
Customers > $50K ARR

610

No prior period
Free Cash Flow

$2.21M

Previous: -$2M+210.7%
Net Income

-$9.9M

Previous: -$5.9M-67.8%
Operating Income

-$9.72M

Previous: -$5.8M-67.6%
Cash & Equivalents

$107M

Previous: $115M-6.5%
Total Assets

$265M

Previous: $240M+10.5%

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$53.3M

Q4 2021+42.6%vs Q4 2020
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Revenue by segment

Sprout Social · $53.3M total across 2 segments · Q4 2021

  • Subscription
    $52.6M+42.5%
  • Professional services and other
    $644K+49.4%

Forward guidance

For Q1 2022, Sprout Social expects total revenue between $56.1 and $56.2 million, representing 38% year-over-year growth, and a non-GAAP operating loss between ($2.2) million and ($1.8) million. For the full year 2022, the company anticipates total revenue between $249 and $250 million, a 33% increase year-over-year, and a non-GAAP operating loss between ($7.4) and ($6.0) million.

Tailwinds

  • Total revenue growth of 38% year-over-year is expected for Q1 2022.
  • Full year 2022 revenue is projected to grow by 33% year-over-year.
  • Operating margin improvement is expected for the full year 2022.
  • Continued investment in R&D and go-to-market efforts is planned.
  • Attractive unit economics are expected to contribute to financial performance.

Headwinds

  • Non-GAAP operating loss is expected for Q1 2022, between ($2.2) million and ($1.8) million.
  • Non-GAAP operating loss is also anticipated for the full year 2022, between ($7.4) and ($6.0) million.
  • The financial outlook is subject to change based on various assumptions.
  • The ongoing COVID-19 pandemic may impact financial performance and customer demand.
  • Unavailability of reliable estimates for certain items makes reconciliation to GAAP measures difficult.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

-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+8.8%-7.4%
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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