Sprout Social(US:SPT)2025-05-09 20:03Financial Performance - Total revenue for Q1 2025 was $109.289 million, a 13% increase from $96.784 million in Q1 2024[18] - Subscription revenue reached $108.680 million, up 13% from $95.789 million year-over-year[18] - Gross profit for the quarter was $84.451 million, compared to $74.356 million in the same period last year, reflecting a gross margin improvement[18] - Net loss for Q1 2025 was $11.220 million, a decrease from a net loss of $13.575 million in Q1 2024, indicating improved financial performance[18] - For the three months ended March 31, 2025, Sprout Social reported a net loss of $11,220,000, an improvement from a net loss of $13,575,000 in the same period of 2024, representing a decrease of approximately 17.4%[24] - Revenue for the three months ended March 31, 2025, was $109.289 million, representing a 12.8% increase from $96.784 million in the same period of 2024[68] - The net loss attributable to common shareholders for the three months ended March 31, 2025, was $11.220 million, a decrease from a net loss of $13.575 million in the same period of 2024[70] Cash and Liquidity - Cash and cash equivalents increased to $100.902 million as of March 31, 2025, up from $86.437 million at the end of 2024[13] - Cash, cash equivalents, and restricted cash increased to $104,915,000 at the end of the period, up from $73,437,000 at the end of the same period in 2024, marking an increase of approximately 42.9%[24] - Net cash provided by operating activities for the first quarter of 2025 was $18,104,000, compared to $11,164,000 in the first quarter of 2024, reflecting an increase of approximately 62.4%[24] - The company had an outstanding balance of $20,000,000 under its $100,000,000 senior secured revolving credit facility as of March 31, 2025[47] Assets and Liabilities - Total assets decreased slightly to $424.657 million from $428.341 million at the end of 2024[13] - Total liabilities decreased to $249.348 million from $261.747 million at the end of 2024, indicating improved financial health[13] - The company reported an increase in additional paid-in capital to $578.328 million from $558.391 million at the end of 2024[15] Shareholder Information - The number of weighted-average shares outstanding increased to 57,890,898 in Q1 2025 from 56,344,242 in Q1 2024[18] - The weighted average number of common shares outstanding increased to 57,890,898 for the three months ended March 31, 2025, compared to 56,344,242 in the same period of 2024[70] Revenue Recognition and Deferred Revenue - As of March 31, 2025, the company had $360,200,000 in expected revenue from remaining performance obligations, with 71% expected to be recognized in the next 12 months[38] - The company recognized $77,500,000 in revenue from deferred revenue at the beginning of the period, compared to $62,000,000 in the same period of 2024, indicating a growth of approximately 25%[37] Operating Expenses - Operating expenses totaled $95.653 million, an increase of 9% from $87.643 million in Q1 2024, driven by higher sales and marketing costs[18] - For the three months ended March 31, 2025, the total stock-based compensation was $19.795 million, an increase of 9.6% from $18.066 million in the same period of 2024[52] Legal and Regulatory Matters - The Company is currently facing legal challenges, including two putative securities fraud class action cases filed in 2024, which may impact its financial position[55][64] - The Company intends to vigorously defend against the claims asserted in the ongoing legal actions, which could result in significant resource expenditure[64] Marketable Securities - As of March 31, 2025, the total fair value of marketable securities is $1,000,000, a decrease from $3,745,000 as of December 31, 2024[72] - The company holds corporate bonds classified as Level 2 marketable securities, valued at $1,000,000 as of March 31, 2025[72] - The company's marketable securities due in one year or less amount to $1,000,000 as of March 31, 2025, down from $3,745,000 as of December 31, 2024[76] - The total assets measured at fair value were $1,000,000 as of March 31, 2025, consistent with the valuation hierarchy[72] - The company utilizes a three-level hierarchy for fair value measurements, with Level 1 being quoted prices in active markets and Level 3 being unobservable inputs[75]