UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): May 8, 2025 Sprout Social, Inc. 131 South Dearborn St., Suite 700 60603 Chicago , Illinois (Address of Principal Executive Offices) (Zip Code) (866) 878-3231 (Registrant's telephone number, including area code) Not applicable (Former Name or Former Address, if Changed Since Last Report) Check t ...

Core Insights - Sprout Social reported strong financial results for Q1 2025, with a revenue growth of 13% year-over-year, reaching $109.3 million [6][2] - The company emphasized its focus on enterprise growth, customer adoption, and leveraging partnerships to drive expansion [2] Financial Performance - Revenue for Q1 2025 was $109.3 million, a 13% increase compared to Q1 2024 [6] - Current remaining performance obligations (cRPO) stood at $255.8 million, up 21% year-over-year [6] - GAAP operating loss improved to ($11.2) million from ($13.3) million in Q1 2024 [6] - Non-GAAP operating income was $12.5 million, compared to $6.0 million in Q1 2024 [6] - GAAP net loss was ($11.2) million, an improvement from ($13.6) million in Q1 2024 [6] - Non-GAAP net income reached $12.5 million, up from $5.7 million in Q1 2024 [6] - Cash and equivalents totaled $101.9 million as of March 31, 2025, compared to $90.2 million at the end of 2024 [6] Customer Metrics - The number of customers contributing over $10,000 in annual recurring revenue (ARR) increased by 6% to 9,381 [7] - The number of customers contributing over $50,000 in ARR grew by 22% to 1,766 [7] - Notable customers acquired during the quarter included Palo Alto, NASCAR, and Avis Budget Car Rental [8] Business Outlook - For Q2 2025, the company expects total revenue between $110.4 million and $111.2 million [15] - Full-year 2025 revenue is projected to be between $448.9 million and $453.9 million [15]

Core Insights - Jack Henry & Associates (JKHY) reported third-quarter fiscal 2025 GAAP earnings of $1.52 per share, exceeding the Zacks Consensus Estimate by 17.83% and reflecting a year-over-year increase of 27.7% [1] - The company's revenues for the quarter were $585.1 million, slightly missing the Zacks Consensus Estimate by 0.3%, but showing an 8.6% year-over-year growth [1] - After adjusting for deconversion revenues, non-GAAP revenues were $575.4 million, representing a 7% increase year over year [1] Revenue Breakdown - Revenues from Services and Support, which accounted for 56.5% of total revenues, were $330.8 million, up 8.5% year over year, but missed the consensus mark of $332 million [3] - Processing revenues, making up 43.5% of total revenues, reached $254.3 million, an 8.9% year-over-year increase, slightly surpassing the consensus estimate of $253 million [4] - Core segment revenues were $180.7 million, up 8.4% year over year, while Payments revenues increased by 7.7% to $217.4 million, and Complementary revenues rose 12.2% to $167.4 million [5] Profitability Metrics - Adjusted EBITDA for the third quarter was $182.9 million, reflecting a 12.8% year-over-year increase, with an adjusted EBITDA margin of 31.8%, up 160 basis points [6] - Adjusted operating income increased 17.6% year over year to $131.9 million, with an adjusted operating margin of 22.9%, up 210 basis points [6] Balance Sheet and Cash Flow - As of March 31, 2025, cash and cash equivalents were $39.9 million, up from $25.7 million as of December 31, 2024 [7] - Current and long-term debt increased to $170 million as of March 31, 2025, compared to $150 million as of December 31, 2024 [7] Guidance Update - The company lowered its fiscal 2025 GAAP revenue guidance to $2.37-$2.35 billion, down from the previous estimate of $2.39-$2.37 billion [8] - Non-GAAP revenue guidance was revised down to $2.34-$2.33 billion from $2.38-$2.35 billion [8] - GAAP earnings guidance for fiscal 2025 was raised to $6.09-$6.00 per share, while non-GAAP earnings guidance was adjusted to $5.87-$5.83 per share [10]

Core Insights - Uber Technologies reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and a significant improvement from a loss of $0.32 per share a year ago, representing an earnings surprise of 62.75% [1] - The company posted revenues of $11.53 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.61%, but showing growth from $10.13 billion in the same quarter last year [2] - Uber's stock has increased by approximately 42.3% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.60, with projected revenues of $12.3 billion, and for the current fiscal year, the EPS estimate is $2.51 on revenues of $50.42 billion [7] - The estimate revisions trend for Uber is mixed, leading to a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Services industry, to which Uber belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the overall industry outlook may impact Uber's stock performance [8]

Investment Rating - The report indicates a bearish outlook for the Enterprise SaaS industry, with significant declines in valuation multiples and revenue growth expectations [6][9]. Core Insights - The median EV/TTM revenue multiple for enterprise SaaS dropped to 3.7x in Q1 2025, down from 4.8x in Q4 2024, marking a 79.4% decline from its peak of 18x in 2021 [6]. - The IPO landscape for SaaS companies was quiet in Q1 2025, with no major IPOs, and market turmoil has further delayed anticipated IPOs [6][7]. - Revenue growth rates for public enterprise SaaS companies are expected to decline to high single digits/low double digits in 2025, down from previous rates of 15% to 30% [6][7]. - Median gross margins across public SaaS companies increased to 74% in 2024, with expectations to rise to 76% in 2025 [9]. - The median EBITDA margin for public SaaS companies rose to 21.1% in 2024, with further improvements anticipated in 2025 [9]. Summary by Sections Key Takeaways - The report highlights a significant decline in EV/TTM revenue multiples, with Q1 2025 marking the lowest levels since 2016 [6]. - The SaaS market is facing challenges with revenue growth rates expected to decelerate further due to market conditions and tariff uncertainties [6][7]. Stock Returns - The report provides detailed stock performance metrics for various SaaS companies, indicating a general decline in stock prices across the sector [10][11]. Valuations - Valuations have seen substantial declines, with notable increases in EV/TTM revenue multiples for a few companies, while the majority experienced significant decreases [9][10]. Revenue - The report outlines actual revenue figures for several companies, showing a trend of declining year-over-year growth rates [22].

Markets are breathing a huge sigh of relief as we enter into the thick of the Q1 earnings season. Across all sectors, the major theme appears to be "not as bad as feared." Many companies are revising theirWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 20 ...

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 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]