CHICAGO, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced that it will report its financial results for the third quarter ending September 30, 2025 after market close on Wednesday, November 5, 2025. The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wedne ...

Group 1 - Sprout Social, Inc. (NASDAQ:SPT) launched a new integration with Canva, enhancing its social media management capabilities by allowing users to send finalized visuals directly from Canva to Sprout as draft posts [1][2] - The company reported strong Q2 2025 results, with a 12% revenue growth and healthy profitability, indicating a solid financial performance [2] - Total remaining performance obligations (RPO) reached $347.0 million as of June 30, 2025, reflecting an 18% year-over-year growth, showcasing the company's expanding customer base and demand for its services [2] Group 2 - Sprout Social is focused on strengthening its enterprise presence through increased customer adoption, expanding within existing accounts, and scaling growth via strategic partnerships [2]

Core Insights - Sprout Social has launched a new integration with Canva, enhancing its social media management capabilities by allowing users to send finalized visuals directly from Canva to Sprout as draft posts, thus streamlining workflows and reducing errors [1][6]. Group 1: Integration Benefits - The integration facilitates a one-click workflow that allows teams to send designs, images, or videos from Canva to Sprout, including captions, tags, and scheduled times, which helps eliminate delays and allows teams to focus on strategy and performance [2][3]. - This integration addresses common handoff challenges by providing a direct path for creative teams to share assets with social managers for review and scheduling, making it particularly beneficial for teams that finalize content in Canva [3][4]. Group 2: Industry Context - In 2025, short-form video is delivering the highest ROI and commanding the most marketing investment, emphasizing the need for brands to create and publish engaging content quickly [2]. - The integration is positioned as a competitive advantage for brands in a crowded social media landscape, enabling them to share visually striking content that builds deeper audience connections and drives meaningful business results [3][6]. Group 3: User Testimonials - FedEx's Global Social Media Manager highlighted that the integration allows their team to move faster while maintaining brand consistency, saving valuable time by eliminating extra steps in the content publishing process [4].

Core Insights - The original concept of Sprout remains relevant, emphasizing the transformative role of social media in brand-consumer interactions [1] Group 1 - Social media is viewed as a new communication channel that changes how brands and consumers engage with each other [1] - Consumers utilize social media to learn about brands, discover new products, and express their opinions, both positive and negative [1] - Brands will eventually need a platform to effectively interact with consumers on social media [1]

Summary of Sprout Social Conference Call Company Overview - **Company**: Sprout Social (NasdaqCM: SPT) - **Industry**: Social Media Management and Analytics Key Points and Arguments 1. **Company Vision**: Sprout Social aims to transform brand-consumer interactions through social media, which is now a primary communication channel for consumers to learn about and engage with brands [4][5][6] 2. **Growth Trajectory**: The company has grown from $50 million in revenue to over $400 million, indicating significant expansion and market opportunity [8][9] 3. **Market Opportunity**: There are approximately 200 million businesses on social media, but only around 200,000 are using platforms like Sprout, highlighting a vast untapped market [13][26] 4. **Shift in Marketing Leadership**: The transition of social media teams to leadership roles in organizations is expected to drive increased adoption of social media strategies [27][28] 5. **Consumer Behavior Changes**: There is a notable shift in consumer behavior towards social media for brand discovery, which is expected to continue influencing marketing strategies [29][30] 6. **AI Integration**: Sprout Social is leveraging AI to enhance its product offerings, utilizing data from social networks to provide real-time insights and automated responses to customer service issues [31][32][33] 7. **Acquisition of NewsWhip**: The acquisition aims to enhance real-time listening capabilities, allowing brands to respond quickly to emerging issues in social media and traditional media [36][38] 8. **Crisis Management**: NewsWhip enables proactive crisis management by identifying potential issues before they escalate, contrasting with traditional reactive approaches [43][45] 9. **Defensibility Against AI Competitors**: Sprout Social's access to extensive social media data and APIs creates a significant barrier for AI companies attempting to enter the market [49][51] 10. **Sales Strategy**: The company is focusing on enterprise sales, emphasizing the need for value-based selling and understanding the organizational structure of potential clients [66][70] 11. **Growth Drivers**: New customer acquisition is expected to be the primary growth driver in the near term, with a focus on expanding within existing accounts as the company matures [72][73] 12. **Competitive Landscape**: Sprout Social differentiates itself by offering a unified platform that integrates various social media networks, providing a seamless user experience [74][75] Additional Important Insights - **Influencer Marketing**: The Tagger product is gaining traction, allowing brands to identify and engage with micro-influencers, which is becoming increasingly important in marketing strategies [86][87] - **Macro Environment Impact**: The current macroeconomic conditions are affecting new business acquisition, particularly when budgets are not already allocated for social media solutions [94][95] - **Future Outlook**: There is optimism about the continued shift of consumer search behavior towards social media, which could further enhance Sprout Social's market position [98][99]

Group 1 - The market has become increasingly top-heavy as investors focus on a smaller number of large-cap technology companies during the Q2 earnings season [1] - The article highlights the importance of understanding the themes shaping the technology industry, as experienced by analysts with backgrounds in both Wall Street and Silicon Valley [1] Group 2 - The insights provided are based on the author's extensive experience and contributions to financial discussions, particularly in technology [1]

Core Insights - Marketing leaders are reallocating budgets from traditional channels to social media, recognizing its role in driving revenue, customer acquisition, and loyalty [1][2] - The 2025 Impact of Social Media Report indicates that 80% of marketing leaders plan to increase their social media budgets, with 87% intending to boost paid social spending [2][5] Budget Reallocation - 80% of marketing leaders globally are shifting funds to social media, with a significant focus on influencer marketing and organic social [2][4] - 81% of leaders are reallocating funds from traditional SEO to social tactics, reflecting a strategic pivot towards social media [4][5] Investment in Talent - Three-quarters of marketing leaders plan to expand their social media teams in the next year, highlighting the growing importance of social media expertise [2][5] - Social media search specialists are now the top recruitment priority for marketing leaders, indicating a shift in hiring strategies to align with consumer behavior [4][5] Measurement and ROI - There is a notable gap in confidence regarding the ability to measure social media's ROI, with only 44% of leaders rating their teams as "expert" in this area [3][5] - Most social teams focus on engagement and conversion rates, while leaders emphasize the need for revenue and efficiency metrics to assess ROI [3][6] Platform Effectiveness - The most impactful social media platforms for business are Facebook (70%), YouTube (68%), and TikTok (64%), with B2B brands favoring LinkedIn [6] - A disconnect exists between CMOs and social media managers regarding content volume, with CMOs believing more posts will increase impact, while managers do not share this view [6] Cross-Functional Insights - Marketing leaders desire social media insights to be utilized across various departments, yet less than half integrate social data into their CRM systems [7] - Companies are increasingly sophisticated in their social reporting, moving beyond vanity metrics to analyze community conversations for product development [7]

Core Insights - Sprout Social has introduced new features and partnerships aimed at enhancing brand engagement in the Social Intelligence era, focusing on platforms like TikTok and Bluesky for customer interaction and sentiment analysis [1][2][3] Group 1: New Features and Capabilities - The latest release includes TikTok Listening, expanded Bluesky publishing and reporting, and new creator collaboration tools, all designed to convert social interactions into actionable insights and measurable business impact [1][6] - New capabilities also encompass influencer marketing, publishing, listening, and analytics, providing brands with tools to deepen customer relationships and leverage social media as a revenue-driving channel [2][3] Group 2: Strategic Importance of Social Media - Social media has evolved into a critical platform for brand discovery, product research, and real-time decision-making, presenting significant opportunities for brands to enhance customer engagement and drive revenue [2][3] - The integration of social media into the customer journey is emphasized, with a focus on creating a cohesive experience that aligns various touchpoints from awareness to long-term engagement [3] Group 3: Partnerships and Integrations - Sprout Social has established partnerships with platforms like Adobe Express and Canva to streamline creative workflows, enabling brands to publish high-quality content more efficiently [6] - Upcoming integrations with Salesforce aim to enhance customer service across multiple digital channels, further solidifying Sprout's position in the social media management space [6] Group 4: Recognition and Market Position - Sprout Social is recognized as a leader in social media management and analytics, serving approximately 30,000 brands and providing tools that facilitate smarter, faster business impact [5][7] - The company has been awarded the 2024 Best Software Award, highlighting its comprehensive functionality across major social media networks and digital platforms [7]

Group 1 - Sprout Social (SPT) has experienced significant selling pressure, resulting in a 30.9% decline over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The Relative Strength Index (RSI) for SPT is currently at 15.45, indicating that the stock may be oversold and could be poised for a rebound as selling pressure exhausts [5] - Over the last 30 days, the consensus EPS estimate for SPT has increased by 0.3%, suggesting a positive trend in earnings estimates that typically leads to price appreciation [7] Group 2 - SPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Core Viewpoint - Sprout Social (SPT) has experienced a significant downtrend, with a 26.1% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2] - SPT's current RSI reading is 16.23, indicating that heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its previous equilibrium of supply and demand [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding SPT's earnings potential, with a 0.3% increase in the consensus EPS estimate over the last 30 days, suggesting that upward revisions in earnings estimates often correlate with price appreciation [6] - SPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7]