CHICAGO, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Sprout Social (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced their publishing, engagement, customer care, advocacy, and AI-powered business intelligence solutions have been added to the National Association of State Procurement Officials (NASPO) ValuePoint Cloud Solutions Contract held by Carahsoft Technology Corp., The Trusted Government IT Solutions Provider®. The contract enables Carahsoft and its re ...

J Studios Lately, hopes of interest rate cuts have fueled greater investment into small and mid-eap stocks, but Sprout Social (NASDAQ:SPT) continues to be in hangover mode, suffering through the impacts of its shocking guidance cut earlier this year alongside its Q1 earnings print. Sprout Social's Q2 results brought comparatively much less shock, and yet the Street was still unimpressed, sending the stock down in the mid single digits and internupting the stock's attempt to rebound over the past few months. ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $99.4 million, representing a 25% year-over-year growth [16] - Subscription revenue was $98.5 million, also up 25% year-over-year [16] - Non-GAAP gross profit was $78.6 million, with a non-GAAP gross margin of 79.1%, up 100 basis points from a year ago [17] - Non-GAAP operating income for Q2 was $5.3 million, representing a non-GAAP operating margin of 5.3% [18] - Non-GAAP net income for Q2 was $4.9 million, or $0.09 per share, compared to $3.8 million and $0.07 per share a year ago [18] Business Line Data and Key Metrics Changes - The number of customers contributing more than $10,000 in ARR grew 21% year-over-year [17] - The number of customers contributing more than $50,000 in ARR grew 38% year-over-year [17] - Q2 ACV was $13,403, up 36% year-over-year [17] - Gross retention rates improved across each segment of the business [8] Market Data and Key Metrics Changes - RPO totaled $295.1 million, up 43% year-over-year [19] - Deferred revenue at the end of the quarter was $149.3 million [19] - Operating cash flow in Q2 was $2.1 million, down from $6.3 million a year ago [19] Company Strategy and Development Direction - The company aims to lead the industry by focusing on product innovation, customer engagement, and pipeline creation [7] - The acquisition of Tagger has strengthened premium module attach rates and contributed to growth in influencer marketing [10][11] - The company is enhancing its AI and automation capabilities to provide better insights and efficiency for customers [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the buying environment in Q2 mirrored Q1, with longer sales cycles due to new approval processes [7][22] - The company is optimistic about its pipeline and expects strong performance in the second half of the year [15][27] - Management emphasized the importance of customer feedback and product innovation in driving growth [49] Other Important Information - The company has formed a new partnership with Snapchat and is a beta partner for the Threads API [13] - A new Chief Product Officer, Erika Trautman, has been appointed to drive innovation and growth [15] Q&A Session Summary Question: Update on macro environment and pipeline issues - Management indicated that the environment remains similar to Q1, with longer sales cycles due to new decision-making processes [22] Question: Guidance for Social Studio - Management stated that there is no material change in guidance related to Social Studio, with strong momentum expected [24] Question: Pipeline coverage ratios - Management reported that pipeline ratios are the highest ever, with more pipeline created than in previous quarters [27] Question: Pricing model and customer feedback - Management noted that realized price uplift at renewal has been single-digit increases, indicating strong gross revenue retention [29] Question: Impact of verticalization on business - Management highlighted that verticalization has been beneficial, with reps ramping nicely and improved understanding of customer needs [32] Question: Market prioritization of social - Management observed that social customer care is increasingly prioritized by marketing leaders, especially in high-volume interactions [39] Question: Competitive environment and growth opportunities - Management indicated a healthy balance between competitive displacement and greenfield opportunities, with many new customers lacking a platform like Sprout [60] Question: New channels and revenue retention - Management sees new channels as value-add for adoption and usage, enhancing customer engagement without direct monetization [63]

Core Insights - Sprout Social reported a revenue of $99.4 million for Q2 2024, representing a 25% increase compared to Q2 2023 [2][3] - The company achieved a total remaining performance obligations (RPO) of $295.1 million, up 43% year-over-year, and current remaining performance obligations (cRPO) of $212.5 million, up 38% year-over-year [2] - Non-GAAP operating income was $5.3 million, compared to $1.9 million in the same quarter last year, while GAAP operating loss was $16.5 million [3] - The net loss for Q2 2024 was $16.9 million, compared to a net loss of $13.1 million in Q2 2023 [3] - Cash and equivalents totaled $93.2 million as of June 30, 2024, slightly down from $95.2 million at the end of Q1 2024 [4] Financial Highlights - Revenue breakdown: Subscription revenue was $98.5 million, and professional services and other revenue was $0.9 million [39] - Gross profit for Q2 2024 was $76.994 million, up from $61.081 million in Q2 2023 [39] - Total operating expenses increased to $93.507 million from $75.998 million year-over-year [39] Customer Metrics - The number of customers contributing over $10,000 in ARR grew to 8,966, a 21% increase year-over-year [6] - The number of customers contributing over $50,000 in ARR increased to 1,545, up 38% compared to the previous year [6] - Notable customer expansions included Salesforce and Honda, while new customers included Metropolitan Transportation Authority and American Outdoor Brands [6] Business Developments - Sprout Social was recognized as a leader in G2's 2024 Summer Reports across 200 categories and launched AI-powered product enhancements [7] - Erika Trautman was appointed as Chief Product Officer to oversee the global product organization [7] Outlook - For Q3 2024, the company expects total revenue between $101.9 million and $102.1 million, indicating growth of over 19% [8] - The full-year 2024 revenue forecast is between $405.0 million and $406.0 million, assuming more than 20% organic growth [9]

SO WHAT: If you purchased Sprout Social securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. To join the Sprout Social class action, go to https://rosenlegal.com/submit-form/?case_id=25140 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Sprou ...

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics. DJS Law Group DEADLINE: July 12, 2024 If you are a shareholder who suffered a loss, please contact David Schwartz, the managing partner of DJS Law Group, at [email protected] WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and ...

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Sprout Social, Inc. regarding a class action lawsuit due to alleged misleading statements and failures to disclose material information during a specified class period [1][4]. Group 1: Class Action Details - The class period for the lawsuit is from November 3, 2021, to May 2, 2024, with a registration deadline of July 12, 2024 [2]. - Shareholders who purchased shares during this period are encouraged to register for the class action and may be eligible for recovery [3][5]. Group 2: Allegations Against the Company - The complaint alleges that the company made materially false and/or misleading statements regarding its sales and revenue growth, which were not reflective of its transition to an enterprise sales cycle [4]. - It is claimed that the company faced integration challenges with its acquisition of Tagger, leading to self-induced sales headwinds and necessitating a revision of fiscal year 2024 revenue guidance [4]. - The positive statements made by the defendants about the company's business and prospects are alleged to be materially misleading and lacking a reasonable basis [4].

CHICAGO, July 11, 2024 (GLOBE NEWSWIRE) -- Sprout Social, an industry-leading provider of cloud-based social media management software, has been recognized by G2's 2024 Summer Reports as a leader in 211 categories spanning all business segments, from small business to mid-market and enterprise, and across every region including EMEA, APAC, and the Middle East. The company earns these recognitions after being named G2's #1 Best Software Product for 2024. These rankings complement Sprout Social's growth in 20 ...

CHICAGO, July 11, 2024 (GLOBE NEWSWIRE) -- Sprout Social, an industry-leading provider of cloud-based social media management software, has been recognized by G2's 2024 Summer Reports as a leader in 211 categories spanning all business segments, from small business to mid-market and enterprise, and across every region including EMEA, APAC, and the Middle East. The company earns these recognitions after being named G2's #1 Best Software Product for 2024. "Our leadership in G2's awards are incredibly meaningf ...

Core Viewpoint - A class action securities lawsuit has been filed against Sprout Social, Inc. for alleged securities fraud affecting investors between November 3, 2021, and May 2, 2024 [1][2]. Group 1: Allegations and Company Performance - The lawsuit claims that the company's sales and revenue growth did not accurately reflect its transition to an enterprise sales cycle [2]. - It is alleged that the company faced integration challenges with its acquisition of Tagger, impacting its performance [2]. - The complaint states that these issues led to "self-inducing sales headwinds," resulting in a revision of the fiscal year 2024 revenue guidance [2]. - Positive statements made by the defendants regarding the company's business and prospects were deemed materially misleading [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until July 12, 2024, to request to be appointed as lead plaintiff [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no out-of-pocket costs for class members [3]. Group 3: Law Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the U.S. [4].