Sprout Social Announces Fourth Quarter 2024 Financial Results

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]