Financial Data and Key Metrics Changes - The company reported Q4 revenue of $107.1 million, representing a year-over-year growth of 14% [7] - Subscription revenue was $105.9 million, up 15% year-over-year [45] - Non-GAAP operating margin reached over 10% for the first time in operating history, with a non-GAAP operating income of $11.4 million [42][48] - The number of customers contributing more than $50,000 in ARR grew 23% year-over-year [46] - The dollar-based net retention rate for 2024 was 104%, down from 107% in 2023 [49] Business Line Data and Key Metrics Changes - The enterprise segment saw revenue growth of over 35% in FY 2024, indicating success in the upmarket strategy [10] - The company closed the largest new business ACV win in its history with a Fortune 500 financial services company [11][30] - The TAGR product, now rebranded as Influencer Marketing, had one of the strongest growth rates since its acquisition [43] Market Data and Key Metrics Changes - The current remaining performance obligations (RPO) reached $249.4 million, representing a 26% year-over-year growth [7] - The company experienced steady pipeline trends with healthy year-over-year growth across both inbound and outbound channels, particularly in the enterprise business [10] Company Strategy and Development Direction - The company aims to solidify its market position with enterprise-level care, AI functionality, and Influencer Marketing capabilities [11] - Key growth drivers include winning the enterprise, driving customer health and adoption, expanding partnerships, and improving account penetration [20][38] - The company is focused on expanding its footprint of technical and go-to-market integrations with other platforms and deepening international partner reach [17] Management's Comments on Operating Environment and Future Outlook - Management expects the demand environment in FY 2025 to track similarly to FY 2024, with cautious investments and prolonged sales cycles [9][50] - The company is optimistic about the quality of new customers, which are expected to drive higher dollar-based net retention rates going forward [96] Other Important Information - The company processed over 1 billion messages per day for nearly 30,000 customers, providing a unique understanding of content and workflows [18] - The company is enhancing its AI capabilities, with a 300% year-over-year increase in AI-generated content [22] Q&A Session Summary Question: What does the pipeline look like entering 2025? - Management indicated that the pipeline has grown year-on-year with good growth in Q4, particularly within the enterprise group [59] Question: How should we think about margin guidance for 2025? - Management stated that they want to maintain flexibility to invest in growth opportunities throughout the year, with expectations for incremental leverage if revenue overperforms [61][64] Question: What assumptions are being made regarding the economy in the guidance? - Management is taking a measured approach, assuming the demand environment in 2025 remains unchanged from 2024 [70] Question: Can you elaborate on the platform selling approach? - Management emphasized the importance of knowing the ideal customer profile and ensuring the right products are available to support those customers [80] Question: What portion of the customer base can adopt the new Influencer Marketing products? - Management believes every customer is a potential target, but sophistication in social media management will influence adoption [90] Question: How does the company view the competitive landscape? - Management noted that the competitive environment is becoming more favorable due to the strength of their products and the speed to value that they provide [126]

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]

Core Insights - Sprout Social reported a solid fourth quarter with a 14% revenue growth and a 26% growth in current remaining performance obligations (cRPO), indicating a strong foundation for future growth in 2025 and beyond [2][6][10] Financial Performance - Total revenue for Q4 2024 was $107.1 million, up 14% from Q4 2023 [6] - GAAP operating loss improved to ($13.7) million from ($18.2) million in Q4 2023, while non-GAAP operating income was $11.4 million compared to $1.7 million in the same period [6] - GAAP net loss was ($14.4) million, an improvement from ($20.1) million in Q4 2023, with non-GAAP net income at $10.7 million compared to $1.0 million in Q4 2023 [6] - Cash and equivalents totaled $90.2 million as of December 31, 2024, slightly down from $91.5 million as of September 30, 2024 [6] Customer Metrics - The number of customers contributing over $10,000 in annual recurring revenue (ARR) grew to 9,327, a 7% increase year-over-year [7] - The number of customers contributing over $50,000 in ARR increased to 1,718, representing a 23% growth compared to the previous year [7] - The dollar-based net retention rate was 104% in 2024, down from 107% in 2023, while the rate excluding small-and-medium-sized business (SMB) customers was 108%, down from 111% [7][8] Business Highlights - Sprout Social launched a new Total Economic Impact study showing a 268% return on investment for customers [13] - The company was recognized by G2's Best Software Awards across seven categories and named a leader in worldwide social media marketing software for large enterprises by IDC Marketscape [13] - Recent customer additions included notable brands such as Under Armour, ESPN, and Rocket Mortgage [9] Financial Outlook - For Q1 2025, the company expects total revenue between $107.2 million and $108.0 million, with non-GAAP operating income projected between $8.5 million and $9.5 million [10] - For the full year 2025, total revenue is expected to be between $448.1 million and $453.1 million, with non-GAAP operating income between $38.2 million and $43.2 million [10]

Core Insights - The Total Economic Impact study by Forrester Consulting indicates that Sprout Social customers achieved a return on investment (ROI) of 268% and a net present value (NPV) of $1.3 million over three years, with a payback period of less than six months [1][2] Group 1: Productivity and Efficiency - Prior to using Sprout Social, customers' social teams spent 70% of their time on scheduling, publishing, and planning campaigns, which has been streamlined to achieve a 60% productivity lift [2][4] - Customers reported an 80% reduction in employee time spent on social media reporting, leading to significant time savings [6] Group 2: Financial Benefits - Time savings from using Sprout Social are valued at $1.1 million, specifically in scheduling, publishing, social listening, and planning campaigns [6] - Customers leveraging Employee Advocacy through Sprout Social experienced an increase in organic traffic and an additional revenue of $130,000 [6] Group 3: Customer Testimonials - Customers expressed that Sprout Social allows them to focus on high-quality content strategy, leading to a 600% increase in engagement year-over-year across social media channels [5] - One customer noted that without Sprout, they would need to triple their team size to manage social media effectively [5]

Core Insights - Sprout Social has been recognized for the ninth consecutive year in G2's 2025 Best Software Awards, highlighting its strong position in the social media management software industry [1][2] - The company is featured across seven award categories, reflecting its commitment to innovation and customer satisfaction [1][2] Company Overview - Sprout Social is a global leader in social media management and analytics software, serving approximately 30,000 brands [4] - The platform offers comprehensive functionalities including publishing, engagement, customer care, influencer marketing, and AI-powered business intelligence [4] Recent Innovations - In the past year, Sprout Social has enhanced its platform with AI-powered solutions, a rebranded influencer platform, and deeper integrations with organizations like Salesforce [2] - New strategic partnerships across various sectors have been established to deliver ongoing value to customers [2] Customer Feedback - Customers have praised Sprout Social for its detailed analytics that provide actionable insights and demonstrate clear ROI [3] - Users have noted the platform's continuous improvement and its ability to keep up with social media trends without excessive costs [3] - The suite of tools has enabled organizations to operationalize social media programs and make strategic decisions based on detailed analytics [3]

Core Insights - Sprout Social has been recognized for the ninth consecutive year in G2's 2025 Best Software Awards, highlighting its strong position in the social media management software industry [1][2] - The company is featured across seven award categories, reflecting its commitment to innovation and customer satisfaction [1][2] Company Performance - Sprout Social's platform has been enhanced with AI-powered solutions, a rebranded influencer marketing platform, and deeper integrations with organizations like Salesforce [2] - The company serves approximately 30,000 brands, providing tools for publishing, engagement, customer care, influencer marketing, and analytics [4] Customer Feedback - Users have praised Sprout Social for its detailed analytics that provide actionable insights and demonstrate clear ROI [3] - The platform is recognized for its continuous improvement and ability to keep up with social media trends without excessive costs [3] - Customers have successfully operationalized their social media programs using Sprout's suite of tools, establishing efficient workflows and making strategic decisions based on analytics [3]

Core Insights - Sprout Social has launched its rebranded influencer marketing platform, Sprout Social Influencer Marketing, which aims to enhance how brands discover and manage influencer partnerships [1][2] - The platform leverages AI-powered insights and advanced analytics to help marketers identify suitable influencers and maximize campaign ROI [1][3] - Influencer marketing is projected to grow into a $199 billion industry by 2032, highlighting its increasing importance in consumer purchasing decisions [3] Company Overview - Sprout Social is recognized as a global leader in social media management and analytics software, serving approximately 30,000 brands [4] - The company has been awarded the 1 Best Software Product by G2's 2024 Best Software Award, indicating its strong market position [4] Platform Features - The Sprout Social Influencer Marketing platform is designed to streamline the process of discovering influencers and executing campaigns, providing actionable insights and centralized campaign management [2] - A Forrester Consulting study found that users of the platform experienced an average time savings of 25% in managing influencer relationships [3] Market Trends - There is a growing consumer trust in influencers over traditional brands, prompting companies to focus on authentic, relationship-driven marketing strategies [3] - Businesses reportedly earn an average of $6.50 for every $1 spent on influencer marketing, with top campaigns yielding even higher returns [3]

Group 1 - Sprout Social has been recognized as a best place to work in Chicago and Seattle for the sixth consecutive year by Built In's 2025 Best Places to Work Awards [1][2][3] - The awards program honors companies of all sizes, including startups and large enterprises, and recognizes both remote-first employers and those in major tech markets across the U.S. [1][6] - Sprout Social's culture is highlighted as a key factor in this recognition, emphasizing collaboration and a supportive environment for employees [3][4] Group 2 - Sprout Social operates globally with offices in Chicago, Seattle, and Dublin, supporting remote, hybrid, and in-person work arrangements [2][4] - The company serves approximately 30,000 brands with its social media management and analytics software, which has been recognized as the 1 Best Software Product by G2's 2024 Best Software Award [4] - Built In's algorithm for determining the Best Places to Work considers factors such as compensation, benefits, remote work opportunities, and diversity, equity, and inclusion (DEI) programs [3][6]

Core Points - Sprout Social, Inc. will report its financial results for Q4 2024 on February 25, 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] - The company is recognized as a leader in social media management and analytics software, serving approximately 30,000 brands [4] Financial Reporting - The financial results will be available after market close on February 25, 2025 [1] - A live webcast of the conference call can be accessed through Sprout Social's investor relations website [2] - A replay of the webcast will be available for 12 months following the event [3] Company Overview - Sprout Social is a global leader in social media management and analytics software, providing powerful social data to brands [4] - The company has been awarded the 1 Best Software Product by G2's 2024 Best Software Award [4] - Sprout Social's platform includes comprehensive functionalities for 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, and public conference calls [5] - The company encourages stakeholders to follow its social media profiles for updates and material information [5] - Email alerts can be subscribed to for receiving information about the company [5]