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Sprout Social (SPT) FY Conference Transcript
2025-06-03 18:20
Summary of Sprout Social (SPT) FY Conference Call - June 03, 2025 Company Overview - **Company**: Sprout Social (SPT) - **Focus**: Social media management platform for businesses, serving approximately 30,000 customers globally, including Fortune 500 companies [6][13] Key Industry Insights - **Social Media Engagement**: Half of the world's population is on social media, spending an average of 2.5 hours daily, making it a critical platform for customer engagement and marketing [11][12] - **Shift in Customer Care**: Customers increasingly prefer social media for support over traditional methods, necessitating sophisticated social customer care solutions [62][63] Core Business Strategies 1. **Enterprise Upmarket Focus**: - Significant investment in targeting large enterprises, with a successful cohort of customers spending over $50,000 annually [5][6] - Continued growth in enterprise customer base, with three new Fortune 500 clients reported [6][70] 2. **Product Adoption and Usage**: - Emphasis on enhancing product sophistication and ensuring high customer retention through improved implementation and ongoing support [7][70] 3. **Multiproduct Strategy**: - Expanding product offerings to solve more problems for enterprise clients, enhancing the platform's value [8][70] 4. **Ecosystem and Partnerships**: - Building strategic partnerships within the tech ecosystem and social networks to enhance service delivery [8][70] Financial Performance and Market Position - **Net Retention Rate**: Reported at 104% overall, with 108% excluding SMBs, indicating strong customer loyalty and growth potential in the enterprise segment [70][75] - **Customer Quality**: Shift towards acquiring higher quality SMB customers with lower acquisition costs, contributing positively to unit economics [72][75] Influencer Marketing Insights - **Acquisition of Tagger**: Enhancing influencer marketing capabilities, allowing brands to identify and engage with relevant influencers effectively [30][47] - **ROI from Influencer Marketing**: Brands see an average return of $5.67 for every dollar spent on influencer marketing, making it a compelling investment compared to traditional channels [52][70] Customer Care Solutions - **Social Customer Care**: Development of sophisticated tools to manage customer inquiries and complaints on social media, integrating with traditional customer service platforms like Salesforce and Zendesk [66][68] - **Smart Inbox Feature**: Utilizes AI to classify customer inquiries by urgency and sentiment, improving response efficiency [64][70] Market Environment and Guidance - **Stable Customer Behavior**: Despite macroeconomic uncertainties, customer behavior remains consistent, with no significant changes in spending patterns observed [77][79] - **Measured Guidance Approach**: The company is adopting a cautious approach to financial guidance, ensuring flexibility in operations amid market fluctuations [79][80] Conclusion Sprout Social is strategically positioning itself to capitalize on the growing importance of social media in business operations, particularly in enterprise customer engagement and influencer marketing. The company is focused on enhancing its product offerings and customer care solutions while maintaining a strong retention rate and adapting to market dynamics.
New Research from Sprout Social Finds Social Media is the Top Place Gen Z Turns to for Search, Surpassing Traditional Search Engines
GlobeNewswire· 2025-05-29 13:01
More than 1 in 3 consumers across age groups prefer searching on social platforms first for product reviews and recommendations76% of users say social content influenced a purchase in the last six months, including 90% of Gen ZRespondents say social platforms deliver net-positive impacts on their mental health, financial decisions, and social lives CHICAGO, May 29, 2025 (GLOBE NEWSWIRE) -- Gen Z isn’t just spending more time on social media; they’re turning to it first when they need answers, which is shapi ...
Wall Street Analysts Think Sprout Social (SPT) Could Surge 27.31%: Read This Before Placing a Bet
ZACKS· 2025-05-20 15:01
Group 1 - Sprout Social (SPT) shares have increased by 22.6% over the past four weeks, closing at $23.14, with a mean price target of $29.46 indicating a potential upside of 27.3% [1] - The average of 13 short-term price targets ranges from a low of $18 to a high of $42, with a standard deviation of $6.49, suggesting variability in analyst estimates [2] - Analysts show strong agreement on SPT's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for SPT has increased by 10.5% due to five upward revisions in earnings estimates over the last 30 days, with no negative revisions [12] - SPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]
Earnings Estimates Moving Higher for Sprout Social (SPT): Time to Buy?
ZACKS· 2025-05-19 17:21
Sprout Social (SPT) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.Analysts' growing optimism on the earnings prospects of this developer of cloud software is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and ne ...
Sprout Social Unveils New Innovations in its Care Solution, Empowering Brands to Drive Business with Proactive Social Care
GlobeNewswire News Room· 2025-05-14 13:01
Innovations to Care by Sprout will enable marketers to provide proactive, secure and insights-driven customer care on social.New releases, available today, include additional bot channels, customizable workflows, compliance and governance capabilities, as well as more holistic reporting functionality.Sprout announces its upcoming AI agent integration to resolve inquiries in seconds and free teams from repetitive tasks using a trained bot deployed across multiple channels. CHICAGO, May 14, 2025 (GLOBE NEWSWI ...
Sprout Social(SPT) - 2025 Q1 - Quarterly Report
2025-05-09 20:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q _________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-39156 __________________________________ SPROUT SOCIAL, INC. (Exac ...
Here's What Key Metrics Tell Us About Sprout Social (SPT) Q1 Earnings
ZACKS· 2025-05-09 00:30
Sprout Social (SPT) reported $109.29 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 12.9%. EPS of $0.22 for the same period compares to $0.10 a year ago.The reported revenue represents a surprise of +1.59% over the Zacks Consensus Estimate of $107.58 million. With the consensus EPS estimate being $0.15, the EPS surprise was +46.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...
Sprout Social (SPT) Q1 Earnings and Revenues Top Estimates
ZACKS· 2025-05-08 23:35
Sprout Social (SPT) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this developer of cloud software would post earnings of $0.15 per share when it actually produced earnings of $0.19, delivering a surprise of 26.67%.Over the last four quart ...
Sprout Social(SPT) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:02
Sprout Social (SPT) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Alex Kurtz - VP - IR & Corporate DevelopmentRyan Barretto - CEO & DirectorJoe Del Preto - CFORaimo Lenschow - Managing DirectorElizabeth Porter - Executive DirectorGreyson Sklba - Equity Research AssociateRobert Morelli - Equity Research AssociateAllan Verkhovski - Associate Director - Equity ResearchArjun Bhatia - Co-Group Head - Technology, Media & CommunicationsJackson Ader - Managing Director Conference Call Particip ...
Sprout Social(SPT) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:00
Sprout Social (SPT) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Ladies and gentlemen, this is the operator. Today's call is scheduled to begin momentarily. Until that time, your lines will be placed on music hold. Thank you for your patience. Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sprout Social First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any b ...