NASDAQ$SPT

Sprout Social Inc. · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sprout Social reported a solid fourth quarter in 2024, with significant revenue growth and improved operating income, driven by strong performance in subscription services.

Sprout Social delivered a solid fourth quarter, with revenue increasing by 14% year-over-year to $107.1 million. The company significantly improved its GAAP operating loss and achieved positive non-GAAP operating income, demonstrating strong financial health and operational efficiency.

  • Revenue increased by 14% year-over-year to $107.1 million in Q4 2024.
  • GAAP operating loss improved to ($13.7) million from ($18.2) million in Q4 2023.
  • Non-GAAP operating income reached $11.4 million, a significant increase from $1.7 million in Q4 2023.
  • Cash and equivalents totaled $90.2 million as of December 31, 2024, with net cash provided by operating activities at $4.1 million.

Headline financials

Total Revenue

$107M

Previous: $93.6M+14.4%
EPS (adj)

$0.19

Previous: $0.02+850.0%
Total RPO

$352M

No prior period
Current RPO

$249M

No prior period
Customers > $10K ARR

9.3K

Previous: 8.7K+7.0%
Customers > $50K ARR

1.7K

Previous: 1.4K+23.0%
Net Income

-$14.4M

Previous: -$20.1M+28.2%
Operating Income

-$13.7M

Previous: -$18.2M+24.9%
Gross Profit

$83.7M

Previous: $72.6M+15.2%

Revenue & EPS history

Sprout Social · Revenue · Quarterly

$107M

Q4 2024+14.4%vs Q4 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 first quarter of 2025, Sprout Social expects total revenue between $107.2 million and $108.0 million, and non-GAAP operating income between $8.5 million and $9.5 million. For the full year 2025, the company anticipates total revenue between $448.1 million and $453.1 million, and non-GAAP operating income between $38.2 million and $43.2 million.

Tailwinds

  • Projected revenue growth for Q1 2025 and full year 2025.
  • Anticipated positive non-GAAP operating income for Q1 2025 and full year 2025.
  • Continued focus on execution, winning the enterprise, driving customer health, and expanding partnership ecosystem.
  • Expected growth in customer engagement.
  • Strong foundation laid for future growth in 2025 and beyond.

Headwinds

  • Guidance is based on assumptions subject to change and outside the Company's control.
  • No assurance that the Company will achieve the projected results.
  • Does not provide GAAP guidance for operating loss or net loss per share due to estimation difficulties.
  • Unavailability of reliable estimates for certain items could significantly impact future financial results.
  • Potential for actual results to vary greatly from assumptions.

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 2024

Historical avgQ4 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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