NASDAQ$SPT

Sprout Social Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sprout Social's Q4 2023 financial results were announced, showcasing growth and strategic advancements.

Sprout Social reported a revenue of $93.6 million, a 34% increase compared to Q4 2022. The company's ARR reached $385.2 million, marking a 30% year-over-year growth. While GAAP operating loss was ($18.2) million, non-GAAP operating income stood at $1.7 million.

  • Revenue increased by 34% year-over-year, reaching $93.6 million.
  • ARR grew to $385.2 million, a 30% increase compared to the previous year.
  • GAAP operating loss was ($18.2) million, while non-GAAP operating income was $1.7 million.
  • The company expanded its customer base with key additions and renewals.

Headline financials

Total Revenue

$93.6M

Previous: $69.7M+34.3%
EPS (adj)

$0.02

Previous: $0.03-33.3%
Customers > $10K ARR

8.7K

No prior period
Customers > $50K ARR

1.4K

Previous: 972+43.7%
Capital Expenditures

-$629K

No prior period
Net Income

-$20.1M

Previous: -$11.9M-68.1%
Operating Income

-$18.2M

Previous: -$13.1M-38.6%
Gross Profit

$72.6M

No prior period

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$93.6M

Q4 2023+34.3%vs Q4 2022
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 Q1 2024, Sprout Social anticipates revenue between $97.2 million and $97.3 million, with non-GAAP operating income between $0.6 million and $0.7 million. Full year 2024 revenue is projected to be between $425.3 million and $425.5 million, with non-GAAP operating income between $15.0 million and $16.0 million.

Tailwinds

  • Expects Q1 2024 revenue between $97.2M and $97.3M, reflecting growth greater than 29%.
  • Projects Q1 2024 non-GAAP operating income between $0.6M and $0.7M.
  • Anticipates full year 2024 revenue between $425.3M and $425.5M.
  • Forecasts full year 2024 non-GAAP operating income between $15.0M and $16.0M.
  • Implies roughly 220bps year-over-year Non-GAAP operating margin improvement for full year 2024.

Headwinds

  • Outlook is based on assumptions that are subject to change and outside of the Company’s control.
  • There can be no assurance that the Company will achieve these results.
  • Company does not provide guidance for operating loss.
  • Company does not provide guidance for net loss per share.
  • Company does not provide guidance for operating margin.

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 2023

Historical avgQ4 2023

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro