Sprout Social (SPT) has been on a downward spiral lately with significant selling pressure. After declining 20.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a st ...

Core Insights - Sprout Social has launched a reimagined influencer marketing platform featuring AI-driven capabilities for natural language discovery and data analysis, aimed at enhancing brand partnerships and revenue generation [1][2][3] Company Developments - The new platform includes a refreshed design and is tailored to meet the evolving needs of marketers who are shifting towards more authentic and relatable connections with consumers [1][2] - Strategic updates were made based on customer feedback to address challenges in creating cohesive, data-driven campaigns and finding suitable influencers [3][6] Industry Trends - Traditional marketing tactics are becoming less effective, prompting marketers to seek innovative ways to engage consumers through social media [2] - Influencer marketing has transitioned from a trend to a critical driver of return on investment (ROI), with nearly half of consumers making purchases influenced by social media posts [2] Platform Features - AI-Powered Natural Language Creator Search allows marketers to identify creators based on topics, facilitating faster and more impactful partnerships [6][7] - The AI-Powered Brand Fit Score provides an instant assessment of how well a creator's content aligns with a brand's values, aiding in smarter decision-making [7] - Customizable Brand Safety Reporting helps brands ensure that creators align with their safety guidelines by analyzing content against defined parameters [7][8]

CHICAGO, April 07, 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 first quarter ending March 31, 2025 after market close on Thursday, May 8, 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 Thursday, May ...

Group 1 - The article discusses Sprout Social (NASDAQ: SPT) and previously held a hold rating due to insufficient evidence of success in penetrating the enterprise customer base [1] - The author emphasizes a diverse investing background, incorporating fundamental, technical, and momentum investing strategies to refine the investment process [1] - The purpose of writing on Seeking Alpha is to track investment ideas and connect with like-minded investors [1] Group 2 - There is no stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation for it, aside from Seeking Alpha [2] - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [3]

Revenue Growth and Market Position - Sprout Social generated revenue of $405.9 million in 2024, representing a growth of 22% from 2023 and 31% from 2022[40]. - The platform serves approximately 30,000 customers across more than 100 countries, with over 99% of revenue in 2024 coming from software subscriptions[33][36]. - The annual served addressable market (SAM) for the platform in 2023 exceeded $55 billion, with an estimated growth to over $120 billion by 2025, representing an annual market growth rate of greater than 25%[80]. - More than 80% of revenue in 2024 was generated from new customers through unpaid channels, highlighting strong market leadership[62]. - The company has approximately 30,000 current customers, with a focus on Mid-market and Enterprise segments, expecting growth driven by these areas[86]. - The company received the 1 spot on G2 across all software products in 2024, reflecting its commitment to delivering superior value[95]. Customer Engagement and Satisfaction - Nearly three-quarters of consumers expect a response to social media messages within 24 hours, highlighting the importance of timely engagement[45]. - The customer satisfaction (CSAT) score has consistently been high, with a score of 95% over the past five years and 98%+ in the last two years[11]. - The company achieved a 13% completion rate for recent customer satisfaction surveys, indicating potential variability in customer satisfaction levels[172]. Product and Technology - The platform offers a robust suite of AI-powered solutions, including social listening, reporting, and analytics, to enhance business decision-making[54][53]. - The platform enables customers to process over 1 billion messages daily, providing critical insights and driving impactful results from day one[11]. - The proprietary AI and automation access over 10 years of historical social data sets and 15 years in sentiment and textual analysis[11]. - The platform allows for automated scheduling of content across social networks, optimizing reach through machine learning[66]. - The software used by the company is complex and may contain undetected errors or vulnerabilities, potentially leading to platform malfunctions and loss of customers[200]. Financial Performance and Expenses - Sales and marketing expenses for the year ended December 31, 2024, were $184.1 million, up from $168.1 million in 2023 and $123.7 million in 2022[93]. - Research and development expenses were $102.8 million for the year ended December 31, 2024, compared to $79.6 million in 2023 and $61.4 million in 2022[99]. - The company incurred net losses of $62.0 million, $66.4 million, and $50.2 million in 2024, 2023, and 2022, respectively, with an accumulated deficit of $354.4 million as of December 31, 2024[187]. - The company plans to continue investing in research and development and sales and marketing efforts, anticipating that operating expenses will continue to increase as it scales its business[187]. Competitive Landscape and Market Challenges - The company faces significant competition in the social media management platform market, requiring continuous innovation and effective marketing strategies to maintain its market position[205]. - The sales cycle for larger enterprise customers is becoming longer and more expensive, potentially leading to increased pricing pressure[168]. - The company may face pricing pressures from competitors offering lower-priced alternatives, impacting its revenue and profitability[207]. - The company recognizes subscription revenue ratably over contract terms, making it difficult to immediately reflect changes in new sales or renewals in financial results[169]. Employee Engagement and Well-being - In 2024, Sprout Social launched its first Culture Survey, achieving a 64% response rate and an Employee Net Promoter Score (eNPS) of 32, indicating strong employee advocacy[126]. - The total rewards philosophy in 2024 included globally competitive compensation packages, with annual salary reviews based on market data to ensure fairness[129]. - Sprout Social offered a $5,000 family planning benefit for surrogacy and adoption, along with a global parental leave program providing equal time off for all parents[131]. - The company emphasized employee development through its Grow@ platform, providing access to digital learning resources and specialized training programs[124]. - Sprout Social's commitment to employee well-being included mental health resources, financial wellness tools, and backup care options[136]. Regulatory and Compliance Risks - Legal and regulatory obligations related to data privacy and security are stringent and evolving, with potential penalties for non-compliance that could impact business operations[209]. - The company must adapt to various data privacy laws globally, including the EU GDPR and Brazil's LGPD, which impose strict compliance requirements[212]. - The company is subject to the EU's Digital Services Act, which may necessitate changes in business practices to comply with new legal obligations[214]. - Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is required, necessitating measures to secure cardholder information[220]. Cybersecurity and Operational Risks - The company relies on information technology systems for sensitive data, and any cybersecurity-related attack could negatively impact its business and reputation[188]. - The company faces risks from evolving cybersecurity threats, including ransomware and supply-chain attacks, which could disrupt operations and lead to reputational harm[227]. - Significant resources are expended to protect against security incidents, but there is no assurance that implemented measures will be effective[230]. - Security incidents may lead to government enforcement actions, litigation, and reputational harm, negatively impacting customer retention and growth[231].

Investor Presentation 4Q FY24 Disclaimers Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "explore," "future," "intend," "long-term operating model," "medium to long-term goals," "m ...

Sprout Social, Inc. (NASDAQ:SPT) Q4 2024 Earnings Conference Call February 25, 2025 5:00 PM ET Company Participants Alex Kurtz - Vice President, Investor Relations and Corporate Development Ryan Barretto - Chief Executive Officer Joe Del Preto - Chief Financial Officer Conference Call Participants David Hynes - Canaccord Genuity Raimo Lenschow - Barclays Parker Lane - Stifel Arjun Bhatia - William Blair & Company Scott Berg - Needham Elizabeth Porter - Morgan Stanley Jackson Ader - KeyBanc Capital Markets O ...

Core Viewpoint - Sprout Social reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing significant growth from $0.02 per share a year ago, indicating strong performance in the cloud software sector [1][2]. Financial Performance - The company achieved revenues of $107.09 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.35% and increasing from $93.58 million year-over-year [2]. - Over the last four quarters, Sprout Social has consistently surpassed consensus EPS estimates, achieving this four times [2]. Stock Performance and Outlook - Sprout Social shares have declined approximately 9.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.7%, indicating underperformance in the market [3]. - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $109.95 million, and for the current fiscal year, it is $0.69 on revenues of $465.17 million [7]. Industry Context - The Internet - Services industry, to which Sprout Social belongs, is currently ranked in the top 50% of over 250 Zacks industries, suggesting a favorable environment for companies within this sector [8].

Revenue Performance - Revenue for Q4 2024 was $107.1 million, representing a 14% increase compared to Q4 2023[6] - Total revenue for Q4 2024 was $107.09 million, an increase of 14.4% compared to $93.58 million in Q4 2023[35] - Subscription revenue reached $105.92 million in Q4 2024, up from $92.22 million in Q4 2023, reflecting a growth of 14.8%[35] - For Q1 2025, the company expects total revenue between $107.2 million and $108.0 million[11] - For the full year 2025, total revenue is projected to be between $448.1 million and $453.1 million[11] Customer Metrics - The number of customers contributing over $10,000 in ARR grew to 9,327, a 7% increase year-over-year[11] - The dollar-based net retention rate was 104% in 2024, down from 107% in 2023[11] - The dollar-based net retention rate was not explicitly stated, but the company emphasizes its importance in evaluating long-term customer relationships[30] - The number of customers contributing more than $10,000 in ARR is a key metric for future growth potential, although specific figures were not provided[28] Financial Performance - Non-GAAP operating income for Q4 2024 was $11.4 million, compared to $1.7 million in Q4 2023[6] - The net loss for Q4 2024 was $14.42 million, a decrease from a net loss of $20.08 million in Q4 2023, representing a 28.4% improvement[35] - Net loss for the three months ended December 31, 2024, was $14,417 thousand, an improvement from a net loss of $20,077 thousand in the same period of 2023, indicating a reduction of approximately 28%[43] - Non-GAAP net income for the three months ended December 31, 2024, was $10,698 thousand, compared to $980 thousand in 2023, representing a substantial increase[49] Cash and Liquidity - Cash and equivalents totaled $90.2 million as of December 31, 2024, slightly down from $91.5 million as of September 30, 2024[6] - Cash and cash equivalents increased to $86.44 million as of December 31, 2024, up from $49.76 million a year earlier, showing a growth of 73.5%[40] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $26,321 thousand, significantly higher than $6,456 thousand in 2023, showing an increase of over 300%[46] - The company reported a net increase in cash of $36,723 thousand for the twelve months ended December 31, 2024, compared to a decrease of $26,222 thousand in 2023[48] Operating Expenses and Liabilities - Total operating expenses for Q4 2024 were $97.35 million, compared to $90.85 million in Q4 2023, indicating an increase of 7.1%[36] - Total liabilities increased to $261,747 thousand in 2024 from $252,393 thousand in 2023, reflecting a growth of approximately 3%[41] Stockholder Equity and Compensation - Stockholders' equity rose to $166,594 thousand in 2024, up from $144,192 thousand in 2023, representing an increase of about 15.6%[41] - The total stock-based compensation expense for the twelve months ended December 31, 2024, was $84.30 million, an increase from $67.70 million in 2023[38] - Stock-based compensation expense for the three months ended December 31, 2024, was $22,453 thousand, up from $18,659 thousand in 2023, an increase of about 20%[48] Deferred Revenue and Performance Obligations - Current remaining performance obligations (cRPO) reached $249.4 million, up 26% year-over-year[6] - Deferred revenue for the three months ended December 31, 2024, was $29,475 thousand, compared to $18,051 thousand in 2023, indicating a growth of approximately 63%[44] Company Updates and Recognition - The company launched updates to its suite of AI solutions to enhance competitiveness[11] - Sprout Social was recognized as a leader in worldwide social media marketing software for large enterprises by IDC Marketscape[11]

26% Year-over-Year cRPO Growth, Cash Flow From Operations Grew to $26.3 million in Fiscal 2024CHICAGO, Feb. 25, 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 financial results for its fourth quarter ended December 31, 2024. “The Sprout team delivered a solid fourth quarter, driving 14% revenue growth and 26% growth in cRPO, laying the foundation for future growth in 20 ...