Sprout Social(US:SPT)2025-11-05 21:14Revenue 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]