Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $115.6 million, reflecting a 13% year-over-year growth and a non-GAAP operating margin expansion of almost 460 basis points to nearly 12% [5][24] - Remaining performance obligations (RPO) grew 17% year-over-year to $258.5 million, indicating strong demand and execution [5] - Non-GAAP operating income totaled $13.7 million, up from $7.5 million a year ago, marking a record non-GAAP operating margin of 11.9% [24][26] Business Line Data and Key Metrics Changes - Subscription revenue was $114.7 million, also up 13% year-over-year [26] - The number of customers contributing more than $50,000 in annual recurring revenue (ARR) grew 21% year-over-year, indicating strong performance in the enterprise segment [26] - The $50,000-plus ARR customer cohort is now approaching 2,000 customers, an increase of nearly 700 over the past two years [6] Market Data and Key Metrics Changes - The company reported strong net additions and the inclusion of NewsWeb customers, which has added several large global brands to its customer base [5][6] - The enterprise segment continues to show robust growth, with large deals driving significant revenue contributions [6][23] Company Strategy and Development Direction - The company is focusing on enhancing capabilities to serve larger customers while refining its approach to smaller accounts [7] - The integration of NewsWeb is seen as a key driver for growth, creating new pipelines and increasing deal sizes [14][15] - The company is rolling out a long-term AI strategy, anticipating significant product expansion in Q4 [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market size and the value being added to customers, particularly in the enterprise segment [31] - Despite challenges in the SMB and agency sectors, management sees opportunities for growth through pricing, packaging, and AI [32] - The company is optimistic about its ability to lead in the next era of social intelligence, leveraging its unique strengths and partnerships [10][22] Other Important Information - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, aimed at enhancing customer engagement [16][19] - Sprout Social was named a preferred partner in Reddit's official data partner program, highlighting its standing in the social technology space [22] Q&A Session Summary Question: Thoughts on revenue growth and market momentum - Management acknowledged the stable revenue growth and expressed excitement about progress in the enterprise segment, noting distinct business dynamics between larger and smaller customers [30][31] Question: Insights on profitability improvements - Management attributed the profitability increase to revenue overperformance, efficiency gains, and strategic hiring [33][34]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $115.6 million, reflecting a 13% year-over-year growth [5][26] - Non-GAAP operating margin expanded by nearly 460 basis points to 11.9%, marking a record high for the company [5][25] - Remaining performance obligations (RPO) grew 15% year-over-year to $357.1 million, with $258.5 million expected to be recognized as revenue over the next 12 months [25][27] Business Line Data and Key Metrics Changes - Subscription revenue reached $114.7 million, also up 13% year-over-year [26] - The number of customers contributing more than $50,000 in annual recurring revenue (ARR) grew by 21% year-over-year [27] - The 50K+ ARR customer count increased by 21%, indicating strong demand in the enterprise segment [5][27] Market Data and Key Metrics Changes - The company reported strong demand trends consistent with the first half of the year, particularly in large deals [7] - The 50K+ ARR cohort now accounts for nearly half of total revenue, with revenue growth in the high 20s on a year-over-year trailing 12-month basis [8] Company Strategy and Development Direction - The company is focusing on enhancing capabilities to serve larger customers while refining approaches for smaller accounts [8] - A significant emphasis is placed on AI product expansion, with expectations for Q4 to be pivotal for AI strategy rollout [9][12] - The integration of NewsWeb is seen as a key driver for growth, creating new pipelines and increasing deal sizes [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market size and the value being added to customers, particularly in the enterprise segment [32] - The company anticipates continued growth driven by AI advancements and strategic partnerships [12][23] - Management acknowledged challenges in the SMB and agency segments but sees opportunities for improvement through pricing and packaging [34] Other Important Information - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, aimed at enhancing customer engagement [18][19] - Sprout Social was named a preferred partner in Reddit's official data partner program, highlighting its standing in social technology [23] Q&A Session Summary Question: Thoughts on revenue growth and market momentum - Management noted excitement about progress in the enterprise segment and the growth of 50K+ customers, while acknowledging challenges in the SMB sector [32][34] Question: Insights on profitability improvements - Management attributed the increase in profitability to revenue overperformance, efficiency gains, and strategic hiring [36][37]

Financial Data and Key Metrics Changes - Sprout Social reported revenue of $115.6 million for Q3 2025, reflecting a 13% year-over-year growth and a non-GAAP operating margin expansion of nearly 460 basis points to a record high of 11.9% [5][24] - Remaining performance obligations (RPO) grew 17% year-over-year to $258.5 million, indicating strong demand and execution [5][26] - Non-GAAP operating income totaled $13.7 million, up from $7.5 million a year ago, marking a significant increase in profitability [24][26] Business Line Data and Key Metrics Changes - Subscription revenue reached $114.7 million, also up 13% year-over-year, with the number of customers contributing more than $50,000 in annual recurring revenue (ARR) growing by 21% [25] - The $50,000-plus ARR customer segment is now approaching 2,000 customers, accounting for nearly half of total revenue [6][7] - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, enhancing its service offerings [16][20] Market Data and Key Metrics Changes - The company experienced strong go-to-market momentum with the acquisition of NewsWeb, generating more pipeline than any new product in its history [14] - Strategic wins included partnerships with major global brands, indicating a strong market presence and customer commitment [6][14] Company Strategy and Development Direction - Sprout Social is focusing on enhancing its capabilities to serve larger customers while refining its approach to smaller accounts [7] - The company is rolling out a long-term AI strategy, anticipating significant product expansion in Q4 2025 [8][11] - The integration of NewsWeb is expected to create new pipelines and increase deal sizes, demonstrating the effectiveness of the company's social intelligence strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macro environment and highlighted the strong demand trends observed in Q3 [6][8] - The leadership emphasized the importance of social data and AI in shaping future business strategies, positioning Sprout Social as a leader in the next era of business software [10][11] Other Important Information - The company achieved a 19% automated resolution rate and a 65% reduction in time spent in the help center, showcasing improvements in customer support efficiency [21] - Sprout Social was named a preferred partner in Reddit's official data partner program, enhancing its standing in the social technology landscape [22] Q&A Session Summary Question: How does the company view its revenue growth and market momentum? - Management acknowledged the stable revenue growth and highlighted the progress in moving upmarket, with a focus on larger deals and customer segments [30] Question: What factors contributed to the increase in profitability this quarter? - Management attributed the profitability increase to revenue overperformance, improved efficiency, and strategic hiring [32]

Q3 FY2025 Financial Performance - Total revenue reached $115.6 million, a 13% increase compared to $102.6 million in Q3 FY2024[10] - Average Contract Value (ACV) grew to $16,064, a 15% increase from $13,959 in Q3 FY2024[9, 10] - The company achieved a Non-GAAP Operating Margin of 12%, up from 7% in Q3 FY2024[10] - Subscription revenue accounted for 99% of the total revenue[9] - Gross profit was 78%[9] Customer Growth and Adoption - The company has approximately 30,000 customers across 100+ countries[7] - The number of customers contributing >$10k in ARR increased to 9,756 from 9,119 in Q3 FY2024[10] - The number of customers contributing >$50k in ARR increased to 1,947 from 1,610 in Q3 FY2024[10] Future Outlook - Q4 FY2025 revenue is projected to be between $118.2 million and $119.0 million, leading to a full-year FY2025 revenue between $454.9 million and $455.7 million[53] - Non-GAAP Operating Income for FY2025 is expected to be between $46.1 million and $47.1 million[53] - Non-GAAP Net Income Per Share is projected to be $0.77-$0.79 for FY2025[53] Long Term Goals - The company aims to achieve >$1 billion in revenue in the medium to longer term[62] - The company aims to achieve >80% Non-GAAP Gross Margin in the medium to longer term[62] - The company aims to achieve >20% Non-GAAP Operating Margin in the medium to longer term[62] - The company aims to achieve 20-22% Non-GAAP FCF Margin in the medium to longer term[62]

Revenue Performance - Revenue for Q3 2025 was $115.6 million, representing a 13% increase compared to Q3 2024[5] - Total revenue for Q3 2025 was $115.593 million, up from $102.638 million in Q3 2024, representing a growth of 12.5%[33] - Subscription revenue increased to $114.720 million in Q3 2025 from $101.813 million in Q3 2024, a rise of 12.6%[33] - For Q4 2025, the company expects total revenue between $118.2 million and $119.0 million[13] - For the full year 2025, total revenue is projected to be between $454.9 million and $455.7 million[13] Customer Metrics - The number of customers contributing over $10,000 in ARR grew to 9,756, a 7% increase year-over-year[12] - The number of customers contributing over $50,000 in ARR increased to 1,947, up 21% compared to the previous year[12] - The number of customers contributing more than $10,000 in ARR is a key metric indicating potential for future growth, although specific numbers were not disclosed[27] Profitability and Income - Non-GAAP operating income was $13.7 million, compared to $7.5 million in Q3 2024[5] - The net loss for Q3 2025 was $9.381 million, an improvement compared to a net loss of $17.087 million in Q3 2024, reflecting a reduction of 45.5%[33] - Non-GAAP net income for Q3 2025 was $13,464,000, compared to $7,312,000 in Q3 2024, reflecting an 84.5% increase[49] - Non-GAAP net income per share is expected to be between $0.15 and $0.17 based on approximately 59.3 million weighted-average shares[13] Cash and Cash Equivalents - Cash and cash equivalents totaled $90.6 million as of September 30, 2025, down from $101.5 million as of June 30, 2025[5] - The company ended the period with cash, cash equivalents, and restricted cash totaling $92,572,000, up from $86,855,000 at the end of Q3 2024[47] Operating Expenses and Compensation - Operating expenses for Q3 2025 totaled $98.920 million, slightly up from $96.285 million in Q3 2024, an increase of 2.7%[33] - The total stock-based compensation expense for Q3 2025 was $19.029 million, down from $23.186 million in Q3 2024, a decrease of 18%[34] - Stock-based compensation expense for Q3 2025 was $19,029,000, down from $23,186,000 in Q3 2024[49] Assets and Obligations - Current remaining performance obligations (cRPO) reached $258.5 million, up 17% year-over-year[5] - Total assets increased to $481.396 million as of September 30, 2025, compared to $428.341 million at the end of 2024, marking a growth of 12.4%[40] - Current remaining performance obligations (cRPO) indicate contracted revenue expected to be recognized in the next 12 months, although specific figures were not provided[26] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $32,492,000, compared to $22,179,000 for the same period in 2024, representing a 46.5% increase[49] - Non-GAAP free cash flow for Q3 2025 was $10,339,000, an increase of 10.9% from $9,311,000 in Q3 2024[49] - Cash flows from investing activities resulted in a net cash outflow of $49,635,000 in Q3 2025, compared to a net inflow of $36,714,000 in Q3 2024[47] Strategic Initiatives - The company launched a new Canva integration and expanded its collaboration with Salesforce to enhance social customer care[13] - The company made payments for business acquisitions totaling $50,333,000 in Q3 2025, significantly higher than $1,409,000 in Q3 2024[47]

Core Insights - Sprout Social reported strong financial results for Q3 2025, with a 17% growth in current remaining performance obligations (cRPO) and improved profitability compared to the previous year [2][5]. Financial Performance - Revenue for Q3 2025 was $115.6 million, representing a 13% increase from Q3 2024 [5]. - GAAP operating loss decreased to $9.1 million from $16.9 million in Q3 2024, while non-GAAP operating income rose to $13.7 million from $7.5 million [5]. - GAAP net loss was $9.4 million, down from $17.1 million in the same quarter last year, with non-GAAP net income increasing to $13.4 million from $7.3 million [5]. - Cash and cash equivalents totaled $90.6 million as of September 30, 2025, down from $101.5 million as of June 30, 2025 [5]. Customer Metrics - The number of customers contributing over $10,000 in annual recurring revenue (ARR) grew by 7% to 9,756 as of September 30, 2025 [6]. - Customers contributing over $50,000 in ARR increased by 21% to 1,947 [6]. - Notable new and existing customers include Xerox, NYU, and Hallmark, indicating strong enterprise segment performance [7]. Business Outlook - For Q4 2025, the company expects total revenue between $118.2 million and $119.0 million, with non-GAAP operating income projected between $9.5 million and $10.5 million [13]. - For the full year 2025, total revenue is anticipated to be between $454.9 million and $455.7 million, with non-GAAP net income per share expected to be between $0.77 and $0.79 [13].

Core Insights - Social media is becoming a primary platform for shopping, customer care, and product discovery during the peak retail season, particularly for holiday gifts [1][4] - The Q4 2025 Pulse Survey indicates that 80% of shoppers will utilize social media as much or more than the previous year for holiday gift searches [2][4] Consumer Behavior - Among Gen Z and Millennials, social media is the top source for holiday gift inspiration, surpassing all other channels except in-store shopping [2][4] - 45% of respondents look to social media for product ideas, outpacing friends and family (35%) and other sources [2] Market Dynamics - The social commerce market is valued at $1.5 trillion, positioning social media as a central hub for discovery and customer care [3] - 73% of shoppers intend to contact brands via social media this holiday season, with expectations for quick and personalized responses [3] AI and Customer Care - A significant majority of consumers (69%) and 78% of Gen Z and Millennials are comfortable with brands using AI for faster and personalized customer care on social media [3][4] - The strategic use of AI chatbots is deemed critical for scaling customer care efforts during the holiday season [3] Brand Strategy - Authentic, human-driven content is essential for brands to engage effectively with consumers, as nearly 90% of consumers believe brands listen well on social media, but 55% feel they do not act on insights sufficiently [4] - Data privacy and ad control are key concerns for users as they approach 2026, with Facebook, Instagram, YouTube, and TikTok being the preferred platforms for engagement [4]

Core Points - Sprout Social, Inc. will report its financial results for Q3 2025 on November 5, 2025, after market close [1] - A conference call and webcast to discuss the financial results will take place at 4:00 p.m. Central Time on the same day [2] - A replay of the webcast will be available for 12 months following the event [3] Company Overview - Sprout Social is a leading provider of cloud-based social media management software, serving approximately 30,000 brands [4] - The company has been recognized as the 1 Best Software Product by G2's 2024 Best Software Award [4] - Sprout Social's platform offers comprehensive functionalities including publishing, engagement, customer care, influencer marketing, and AI-powered business intelligence [4] Information Availability - Sprout Social routinely announces material information through SEC filings, press releases, public conference calls, and webcasts [5] - The company encourages stakeholders to review information shared on its investor relations website and social media profiles [5] - Users can sign up for email alerts regarding company updates through the investor website [5]

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].