[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q2 and H1 2025, showing revenue growth, narrowed net loss, and the NewsWhip acquisition [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $422.9 million, liabilities reduced to $238.4 million, and stockholders' equity increased to $184.6 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $101,532 | $86,437 | | Total current assets | $207,774 | $210,215 | | Total assets | $422,934 | $428,341 | | **Liabilities & Stockholders' Equity** | | | | Deferred revenue (current) | $171,105 | $178,585 | | Revolving credit facility | $15,000 | $25,000 | | Total liabilities | $238,375 | $261,747 | | Total stockholders' equity | $184,559 | $166,594 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew 12.5% to $111.8 million, with net loss narrowing to $12.0 million; H1 revenue grew 12.7% to $221.1 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $111,778 | $99,396 | +12.5% | $221,067 | $196,180 | +12.7% | | Gross Profit | $86,844 | $76,994 | +12.8% | $171,295 | $151,350 | +13.2% | | Loss from Operations | $(12,315) | $(16,513) | +25.4% | $(23,517) | $(29,800) | +21.1% | | Net Loss | $(11,985) | $(16,892) | +29.1% | $(23,205) | $(30,467) | +23.8% | | Net Loss Per Share | $(0.21) | $(0.30) | +30.0% | $(0.40) | $(0.54) | +25.9% | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $23.2 million, investing activities decreased to $1.5 million, and financing activities used $9.5 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,194 | $13,227 | | Net cash provided by investing activities | $1,485 | $33,391 | | Net cash used in financing activities | $(9,542) | $(15,483) | | **Net increase in cash** | **$15,137** | **$31,135** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies, revenue recognition, legal proceedings, and the $55 million NewsWhip acquisition - The company initiated restructuring plans in November 2024 and February 2025, resulting in **$2.7 million of charges** for the six months ended June 30, 2025, primarily impacting the R&D, Sales, and Customer Experience teams[34](index=34&type=chunk) - As of June 30, 2025, the company has **$347.0 million in remaining performance obligations (RPOs)**, with **72% expected to be recognized as revenue** within the next 12 months[39](index=39&type=chunk) - The company is defending against two putative securities fraud class action cases and two putative stockholder derivative lawsuits, alleging false or misleading statements regarding business operations, the Tagger acquisition, and its enterprise market strategy. The company intends to defend itself vigorously but cannot estimate potential costs[59](index=59&type=chunk)[66](index=66&type=chunk)[69](index=69&type=chunk) - On July 30, 2025, the company acquired NewsWhip for an upfront cash payment of **$55 million** and up to **$10 million in contingent consideration**. The acquisition was funded with cash on hand and **$32 million** from its credit facility[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses 13% H1 2025 revenue growth, macroeconomic impacts, customer metrics, and sufficient liquidity for 12 months - The company is experiencing more measured buying behavior and lengthening sales cycles from customers due to macroeconomic uncertainty, which has contributed to a slowdown in revenue growth compared to historical levels[90](index=90&type=chunk) - Growth is focused on acquiring new customers and expanding within the existing base, particularly with larger organizations. International expansion is also a key opportunity, with non-U.S. customers generating approximately **26% of total revenue** in H1 2025[92](index=92&type=chunk)[93](index=93&type=chunk)[96](index=96&type=chunk) Key Customer Metrics as of June 30 | Metric | 2025 | 2024 | Growth | | :--- | :--- | :--- | :--- | | Customers with >$10,000 in ARR | 9,517 | 8,966 | +6.1% | | Customers with >$50,000 in ARR | 1,826 | 1,545 | +18.2% | - The company believes its existing cash and cash equivalents of **$101.5 million** will be sufficient to meet its operating and capital needs for at least the next 12 months[156](index=156&type=chunk)[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces immaterial interest rate and foreign currency exchange risks, as sales are primarily USD-denominated - The company's exposure to interest rate risk is not considered material. A hypothetical **10% change in interest rates** would not have had a material impact on financial statements[181](index=181&type=chunk) - Foreign currency exchange risk is not significant because the vast majority of sales, both domestic and international, are denominated in U.S. dollars[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes in internal controls - The CEO and CFO have concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective to ensure timely and accurate reporting[184](index=184&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[185](index=185&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 7 for details on ongoing legal matters, including securities fraud and stockholder derivative lawsuits - For information regarding legal proceedings, the report refers to Note 7 in Part I, Item 1, which discusses the ongoing securities and derivative lawsuits[188](index=188&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) Highlights risks from unstable market conditions and substantial debt, including restrictive covenants and potential default - Unstable global economic conditions, including inflation, interest rates, and geopolitical conflict, may reduce customer budgets and demand for the company's platform[190](index=190&type=chunk) - The company has a substantial amount of debt (**$15.0 million outstanding** at quarter-end, with an additional **$32 million borrowed subsequently**) which could make it difficult to satisfy obligations and limit its ability to fund future business opportunities[191](index=191&type=chunk)[192](index=192&type=chunk) - The Amended Credit Agreement contains restrictive financial covenants. A breach of these covenants could result in an event of default and acceleration of all outstanding debt[193](index=193&type=chunk)[194](index=194&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported for the quarter ended June 30, 2025 - There were no unregistered sales of equity securities to report for the period[195](index=195&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) Discloses CFO Joe Del Preto adopted a Rule 10b5-1 trading plan to sell Class A Common Stock during the quarter - On May 27, 2025, CFO & Treasurer Joe Del Preto adopted a Rule 10b5-1 trading plan for the sale of up to **18,000 shares** of Class A Common Stock, expiring September 11, 2026[197](index=197&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) Provides an index of exhibits filed with Form 10-Q, including corporate governance documents and officer certifications

Core Insights - Sprout Social, Inc. reported better-than-expected second-quarter financial results, with earnings of 18 cents per share, surpassing the analyst consensus estimate of 15 cents per share, and quarterly sales of $111.110 million, exceeding the estimate of $110.920 million [1][2] - The company issued third-quarter sales guidance above estimates and raised its FY25 sales guidance above estimates [1] - CEO Ryan Barretto highlighted a 12% revenue growth and emphasized the commitment to strengthening enterprise presence through customer adoption and strategic partnerships [2] Financial Performance - Quarterly earnings: 18 cents per share, beating the consensus estimate of 15 cents per share [1] - Quarterly sales: $111.110 million, exceeding the consensus estimate of $110.920 million [1] - Revenue growth: 12% year-over-year [2] Analyst Ratings and Price Targets - Oppenheimer analyst Brian Schwartz maintained an Outperform rating but lowered the price target from $32 to $23 [8] - Goldman Sachs analyst Chris Merwin maintained a Neutral rating and lowered the price target from $24 to $21 [8] Strategic Initiatives - The company is focused on increasing customer adoption, expanding within existing accounts, and scaling growth through strategic partnerships [2] - Recent acquisition of NewsWhip is seen as a key investment to position the company as a leading social media management platform [2]

Core Viewpoint - Sprout Social reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.09 per share a year ago, indicating a positive earnings surprise of +20.00% [1][2] Financial Performance - The company achieved revenues of $111.78 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.68% and up from $99.4 million year-over-year [2] - Over the last four quarters, Sprout Social has consistently exceeded consensus EPS estimates [2] Stock Performance - Sprout Social shares have declined approximately 47.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Sprout Social is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $113.95 million, and for the current fiscal year, it is $0.73 on revenues of $451.89 million [7] - The trend of earnings estimate revisions prior to the earnings release was mixed, which may influence future stock performance [6] Industry Context - The Internet - Services industry, to which Sprout Social belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $111.8 million, representing a year-over-year growth of 12% [5][28] - Non-GAAP operating margin expanded by almost 400 basis points to 9.2% [5][27] - Non-GAAP free cash flow for the quarter was $5.2 million, an increase of 110% year-over-year [27][28] - Remaining performance obligations (RPO) totaled $347 million, up 18% year-over-year [29] Business Line Data and Key Metrics Changes - Subscription revenue was $111.1 million, reflecting a 13% year-over-year increase [28] - The number of customers contributing more than $50,000 in annual recurring revenue (ARR) grew by 18% year-over-year [28] - The average contract value (ACV) for Q2 was $15,321, up 14% year-over-year [28] Market Data and Key Metrics Changes - The company secured strategic wins with global brands such as Honda, Cigna, and the U.S. Department of Transportation, indicating strong market presence [6][38] - The company earned 164 Leader Badges in G2's reports, showcasing its competitive positioning in the market [6] Company Strategy and Development Direction - The acquisition of Newswhip is seen as a pivotal milestone to enhance AI-powered predictive media intelligence capabilities [8][9] - The company aims to deepen customer engagement through use case expansion and premium modules [21][23] - The strategy focuses on winning enterprise customers, improving customer health and adoption, and expanding partnerships [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business performance and noted strong retention and renewal rates [38][71] - The company anticipates some near-term pressure on rep productivity due to the integration of Newswhip [33] - Management highlighted the importance of social media as a channel for product discovery, especially among Gen Z consumers [25][102] Other Important Information - The company launched several product innovations, including enhancements in influencer marketing and customer care [14][16] - The company is expanding partnerships with key networks to enhance its capabilities [21] Q&A Session Summary Question: How would you characterize the core business today? - Management noted strong performance and progress, with significant wins and growth in the enterprise customer segment [38] Question: What is the impact of Newswhip on guidance? - Management projected Newswhip to contribute approximately $2.5 million over the final five months of the year, taking a cautious approach to guidance [41] Question: What is the timeline for integrating Newswhip? - Management indicated that integration efforts are underway, with positive initial feedback from customers [48] Question: How are rising advertising costs affecting customer strategies? - Management noted that customers are increasingly looking to social media for discovery due to disruptions in traditional search [60] Question: What are the trends in the international market? - Management acknowledged that while international business is smaller, there is strong potential for growth and pipeline development [85]

Financial Performance - Total revenue for Q2 FY2025 reached $111.8 million, compared to $99.4 million in Q2 FY2024[10] - The company achieved revenue growth of 12% year-over-year[7] - Average Contract Value (ACV) increased to $15,321 in Q2 FY2025, up from $13,403 in Q2 FY2024, representing 14% growth[7, 10] - Remaining Performance Obligation (RPO) grew to $347.0 million, compared to $295.1 million[10] - Current Remaining Performance Obligation (cRPO) increased to $251.6 million, compared to $212.5 million[10] - Non-GAAP Gross Margin remained consistent at 79%[10, 57] - Non-GAAP Operating Margin improved to 9%, compared to 5%[10, 57] - Non-GAAP Free Cash Flow (FCF) Margin increased to 5%, compared to 3%[10, 57] Customer Metrics - The company has approximately 30,000 customers across 100+ countries[7] - The number of customers contributing >=$10k in ARR increased to 9,517 from 8,966[10] - The number of customers contributing >=$50k in ARR increased to 1,826 from 1,545[10] Acquisition and Guidance - Sprout Social acquired NewsWhip for $55 million in cash, with up to $10 million in performance-based cash earnouts over two years[39] - The company projects total revenue for Q3 FY2025 to be between $114.4 million and $115.2 million, and for the full year FY2025 between $452.9 million and $455.9 million[45] - The company projects Non-GAAP Operating Income for Q3 FY2025 to be between $9.3 million and $10.3 million, and for the full year FY2025 between $43.1 million and $45.1 million[45]

Core Insights - Sprout Social reported strong financial results for Q2 2025, with a revenue growth of 12% year-over-year, reaching $111.8 million [6][2] - The company aims to enhance its enterprise presence through increased customer adoption and strategic partnerships, bolstered by the acquisition of NewsWhip [2] Financial Highlights - Revenue for Q2 2025 was $111.8 million, a 12% increase from Q2 2024 [6] - Total remaining performance obligations (RPO) stood at $347.0 million, up 18% year-over-year [6] - Current remaining performance obligations (cRPO) were $251.6 million, also up 18% year-over-year [6] - GAAP operating loss was ($12.3) million, an improvement from ($16.5) million in Q2 2024 [6] - Non-GAAP operating income was $10.3 million, compared to $5.3 million in Q2 2024 [6] - GAAP net loss was ($12.0) million, improved from ($16.9) million in Q2 2024 [6] - Non-GAAP net income was $10.7 million, up from $4.9 million in Q2 2024 [6] - Cash and equivalents totaled $101.5 million as of June 30, 2025, slightly down from $101.9 million as of March 31, 2025 [6] Customer Metrics - The number of customers contributing over $10,000 in annual recurring revenue (ARR) grew to 9,517, a 6% increase year-over-year [7] - The number of customers contributing over $50,000 in ARR increased to 1,826, an 18% rise compared to the previous year [7] - Notable new and existing customers include Honda, Cigna, and the U.S. Department of Transportation [8] Business Outlook - For Q3 2025, the company expects total revenue between $114.4 million and $115.2 million [9] - For the full year 2025, total revenue is projected to be between $452.9 million and $455.9 million [9]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Sprout Social reported strong Q2 2025 results with **12% revenue growth to $111.8 million** and improved Non-GAAP profitability Q2 2025 Key Performance Metrics | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Revenue | $111.8 million | 12% | | Total RPO | $347.0 million | 18% | | Current RPO (cRPO) | $251.6 million | 18% | Q2 2025 Profitability Summary (GAAP vs. Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | Operating Income/(Loss) | ($12.3) million | ($16.5) million | $10.3 million | $5.3 million | | Net Income/(Loss) | ($12.0) million | ($16.9) million | $10.7 million | $4.9 million | | Net Income/(Loss) Per Share | ($0.21) | ($0.30) | $0.18 | $0.09 | Q2 2025 Cash Flow and Liquidity | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $5.1 million | $2.1 million | | Non-GAAP Free Cash Flow | $5.2 million | $2.5 million | | Cash and Equivalents | $101.5 million | - | [Operational and Business Highlights](index=2&type=section&id=Operational%20and%20Business%20Highlights) Sprout Social increased high-value customers by **18%**, expanded key relationships, and enhanced its platform through the NewsWhip acquisition and 'Guardian' launch [Customer Metrics & Highlights](index=2&type=section&id=Customer%20Metrics%20%26%20Highlights) Customer metrics show an **18% increase in customers with over $50,000 ARR**, alongside new and expanded relationships with major brands High-Value Customer Growth (as of June 30, 2025) | Customer Segment | Count | YoY Growth | | :--- | :--- | :--- | | > $10,000 in ARR | 9,517 | 6% | | > $50,000 in ARR | 1,826 | 18% | - New and existing customers that expanded their relationship in Q2 include Honda, Cigna, Authentic Brands Group, Metropolitan Transportation Authority, U.S. Department of Transportation, LaCroix, Smuckers, and Kimberly-Clark[6](index=6&type=chunk) [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Developments) Recent developments include the NewsWhip acquisition for AI enhancement, the launch of 'Guardian' for brand safety, and new 'Care' product innovations - Acquired NewsWhip to enhance predictive intelligence capabilities and accelerate its AI roadmap[12](index=12&type=chunk) - Launched 'Guardian by Sprout Social' to enhance data security and brand safety[12](index=12&type=chunk) - Released new research indicating social media is the primary search tool for Gen Z, surpassing traditional search engines[12](index=12&type=chunk) [Financial Outlook](index=2&type=section&id=Third%20Quarter%20and%202025%20Financial%20Outlook) Sprout Social forecasts Q3 2025 revenue between **$114.4M and $115.2M**, with full-year revenue projected at **$452.9M to $455.9M** Q3 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $114.4M - $115.2M | | Non-GAAP Operating Income | $9.3M - $10.3M | | Non-GAAP Net Income Per Share | $0.15 - $0.16 | Full Year 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $452.9M - $455.9M | | Non-GAAP Operating Income | $43.1M - $45.1M | | Non-GAAP Net Income Per Share | $0.71 - $0.75 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Sprout Social's operations, balance sheet, and cash flows for the three and six months ended June 30, 2025 [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased to **$111.8 million**, with gross profit of **$86.8 million**, and a narrowed operating loss of **($12.3) million** Q2 2025 Statement of Operations Highlights (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $111,778 | $99,396 | | Gross Profit | $86,844 | $76,994 | | Total Operating Expenses | $99,159 | $93,507 | | Loss from Operations | ($12,315) | ($16,513) | | Net Loss | ($11,985) | ($16,892) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$422.9 million**, with cash of **$101.5 million**, and total stockholders' equity increased to **$184.6 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $101,532 | $86,437 | | Total Current Assets | $207,774 | $210,215 | | Total Assets | $422,934 | $428,341 | | Deferred Revenue (Current) | $171,105 | $178,585 | | Total Liabilities | $238,375 | $261,747 | | Total Stockholders' Equity | $184,559 | $166,594 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 net cash from operating activities significantly improved to **$5.1 million**, resulting in a net increase in cash of **$0.6 million** Q2 Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $5,090 | $2,063 | | Net Cash from Investing Activities | $92 | $13,337 | | Net Cash used in Financing Activities | ($4,542) | ($4,007) | | Net Increase in Cash | $640 | $11,393 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to Non-GAAP financial measures, with Q2 2025 GAAP net loss of **($12.0) million** adjusted to Non-GAAP net income of **$10.7 million** Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | **Net Loss (GAAP)** | **($11,985)** | | Stock-based compensation expense | $20,166 | | Amortization of acquired intangible assets | $1,213 | | Loss on lease termination | $1,175 | | Acquisition-related expenses | $90 | | **Non-GAAP Net Income** | **$10,659** | Reconciliation of Net Cash from Operations to Non-GAAP Free Cash Flow (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | **Net cash provided by operating activities** | **$5,090** | | Expenditures for property and equipment | ($908) | | Interest paid on credit facility | $338 | | Payments related to restructuring charges | $697 | | **Non-GAAP free cash flow** | **$5,217** | [Definitions of Key Metrics](index=3&type=section&id=Definitions%20of%20Key%20Metrics) This section defines Non-GAAP financial measures and key business metrics, including RPO and customer counts based on Annualized Recurring Revenue (ARR) [Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP measures, such as operating income and free cash flow, are used for comparability, excluding items like stock-based compensation and acquisition costs - Non-GAAP operating income is defined as GAAP loss from operations, excluding expenses like stock-based compensation, amortization of acquired intangibles, restructuring charges, and acquisition-related costs[18](index=18&type=chunk) - Non-GAAP free cash flow is defined as net cash from operating activities less expenditures for property and equipment, interest payments on the credit facility, and payments for restructuring charges[22](index=22&type=chunk) [Key Business Metrics](index=5&type=section&id=Key%20Business%20Metrics) Key business metrics include Remaining Performance Obligations (RPO) and customer counts with over **$10,000** and **$50,000** in Annualized Recurring Revenue (ARR) - Remaining Performance Obligations (RPO) represent contracted revenue that has not yet been recognized. Current RPO (cRPO) is the portion expected to be recognized within the next 12 months[25](index=25&type=chunk) - The company tracks the number of customers with over **$10,000** in ARR and over **$50,000** in ARR as a measure of its ability to scale with customers and attract larger organizations[26](index=26&type=chunk)[27](index=27&type=chunk)

Core Insights - Sprout Social has acquired NewsWhip to enhance its capabilities in predictive media intelligence, allowing brands and publishers to better navigate the digital media landscape [1][4] - The integration of NewsWhip's AI-driven insights with Sprout Social's existing solutions will provide a comprehensive view of media and social signals, enabling proactive engagement [2][7] - The acquisition is expected to accelerate Sprout Social's AI roadmap and enhance its Listening capabilities, providing real-time, actionable intelligence to its customers [6][7] Company Overview - Sprout Social is a leading provider of cloud-based social media management software, serving approximately 30,000 brands with a focus on delivering smarter business impact [8] - NewsWhip, founded in 2011, specializes in real-time media intelligence, monitoring millions of signals to help brands identify trending stories and manage crises effectively [3][4] - The acquisition will see NewsWhip's team join Sprout Social, with its CEO Paul Quigley taking on the role of General Manager for Sprout's Listening business [4] Financial Details - The acquisition of NewsWhip was valued at $55 million in cash, with an additional potential of up to $10 million in performance-based earnouts over the next two years [5] - The deal was funded through Sprout's revolving credit facility and cash reserves [5]

Core Viewpoint - Sprout Social (SPT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could lead to increased buying pressure and stock price appreciation [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Sprout Social suggest an improvement in the company's underlying business, which should encourage investors to push the stock price higher [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [10]. Recent Performance of Sprout Social - Analysts have raised their earnings estimates for Sprout Social, with the Zacks Consensus Estimate increasing by 13.8% over the past three months [8]. - The expected earnings per share for the fiscal year ending December 2025 is $0.73, reflecting no year-over-year change [8].

Core Viewpoint - Sprout Social, Inc. will report its financial results for Q2 2025 on August 6, 2025, after market close [1] Financial Results Announcement - The financial results and business highlights will be discussed in a conference call and webcast at 4:00 p.m. Central Time on August 6, 2025 [2] - Online registration for the conference call is available on the company's website [2] Webcast Availability - A replay of the webcast will be available for 12 months after the event [3] Company Overview - Sprout Social is a global leader in social media management and analytics software, serving approximately 30,000 brands [4] - The company offers a comprehensive platform that includes publishing, engagement functionality, customer care, influencer marketing, and AI-powered business intelligence [4] - Sprout Social's software operates across all major social media networks and digital platforms [4] Information Disclosure - Sprout Social routinely announces material information through SEC filings, press releases, public conference calls, webcasts, and its investor relations website [5] - The company encourages stakeholders to review the information shared on its investor website and social media profiles [5]