Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $115.6 million, reflecting a 13% year-over-year growth and a non-GAAP operating margin expansion of almost 460 basis points to nearly 12% [5][24] - Remaining performance obligations (RPO) grew 17% year-over-year to $258.5 million, indicating strong demand and execution [5] - Non-GAAP operating income totaled $13.7 million, up from $7.5 million a year ago, marking a record non-GAAP operating margin of 11.9% [24][26] Business Line Data and Key Metrics Changes - Subscription revenue was $114.7 million, also up 13% year-over-year [26] - The number of customers contributing more than $50,000 in annual recurring revenue (ARR) grew 21% year-over-year, indicating strong performance in the enterprise segment [26] - The $50,000-plus ARR customer cohort is now approaching 2,000 customers, an increase of nearly 700 over the past two years [6] Market Data and Key Metrics Changes - The company reported strong net additions and the inclusion of NewsWeb customers, which has added several large global brands to its customer base [5][6] - The enterprise segment continues to show robust growth, with large deals driving significant revenue contributions [6][23] Company Strategy and Development Direction - The company is focusing on enhancing capabilities to serve larger customers while refining its approach to smaller accounts [7] - The integration of NewsWeb is seen as a key driver for growth, creating new pipelines and increasing deal sizes [14][15] - The company is rolling out a long-term AI strategy, anticipating significant product expansion in Q4 [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market size and the value being added to customers, particularly in the enterprise segment [31] - Despite challenges in the SMB and agency sectors, management sees opportunities for growth through pricing, packaging, and AI [32] - The company is optimistic about its ability to lead in the next era of social intelligence, leveraging its unique strengths and partnerships [10][22] Other Important Information - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, aimed at enhancing customer engagement [16][19] - Sprout Social was named a preferred partner in Reddit's official data partner program, highlighting its standing in the social technology space [22] Q&A Session Summary Question: Thoughts on revenue growth and market momentum - Management acknowledged the stable revenue growth and expressed excitement about progress in the enterprise segment, noting distinct business dynamics between larger and smaller customers [30][31] Question: Insights on profitability improvements - Management attributed the profitability increase to revenue overperformance, efficiency gains, and strategic hiring [33][34]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $115.6 million, reflecting a 13% year-over-year growth [5][26] - Non-GAAP operating margin expanded by nearly 460 basis points to 11.9%, marking a record high for the company [5][25] - Remaining performance obligations (RPO) grew 15% year-over-year to $357.1 million, with $258.5 million expected to be recognized as revenue over the next 12 months [25][27] Business Line Data and Key Metrics Changes - Subscription revenue reached $114.7 million, also up 13% year-over-year [26] - The number of customers contributing more than $50,000 in annual recurring revenue (ARR) grew by 21% year-over-year [27] - The 50K+ ARR customer count increased by 21%, indicating strong demand in the enterprise segment [5][27] Market Data and Key Metrics Changes - The company reported strong demand trends consistent with the first half of the year, particularly in large deals [7] - The 50K+ ARR cohort now accounts for nearly half of total revenue, with revenue growth in the high 20s on a year-over-year trailing 12-month basis [8] Company Strategy and Development Direction - The company is focusing on enhancing capabilities to serve larger customers while refining approaches for smaller accounts [8] - A significant emphasis is placed on AI product expansion, with expectations for Q4 to be pivotal for AI strategy rollout [9][12] - The integration of NewsWeb is seen as a key driver for growth, creating new pipelines and increasing deal sizes [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market size and the value being added to customers, particularly in the enterprise segment [32] - The company anticipates continued growth driven by AI advancements and strategic partnerships [12][23] - Management acknowledged challenges in the SMB and agency segments but sees opportunities for improvement through pricing and packaging [34] Other Important Information - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, aimed at enhancing customer engagement [18][19] - Sprout Social was named a preferred partner in Reddit's official data partner program, highlighting its standing in social technology [23] Q&A Session Summary Question: Thoughts on revenue growth and market momentum - Management noted excitement about progress in the enterprise segment and the growth of 50K+ customers, while acknowledging challenges in the SMB sector [32][34] Question: Insights on profitability improvements - Management attributed the increase in profitability to revenue overperformance, efficiency gains, and strategic hiring [36][37]

Financial Data and Key Metrics Changes - Sprout Social reported revenue of $115.6 million for Q3 2025, reflecting a 13% year-over-year growth and a non-GAAP operating margin expansion of nearly 460 basis points to a record high of 11.9% [5][24] - Remaining performance obligations (RPO) grew 17% year-over-year to $258.5 million, indicating strong demand and execution [5][26] - Non-GAAP operating income totaled $13.7 million, up from $7.5 million a year ago, marking a significant increase in profitability [24][26] Business Line Data and Key Metrics Changes - Subscription revenue reached $114.7 million, also up 13% year-over-year, with the number of customers contributing more than $50,000 in annual recurring revenue (ARR) growing by 21% [25] - The $50,000-plus ARR customer segment is now approaching 2,000 customers, accounting for nearly half of total revenue [6][7] - The company launched several new features, including AI-powered translation and integrations with Canva and Adobe Express, enhancing its service offerings [16][20] Market Data and Key Metrics Changes - The company experienced strong go-to-market momentum with the acquisition of NewsWeb, generating more pipeline than any new product in its history [14] - Strategic wins included partnerships with major global brands, indicating a strong market presence and customer commitment [6][14] Company Strategy and Development Direction - Sprout Social is focusing on enhancing its capabilities to serve larger customers while refining its approach to smaller accounts [7] - The company is rolling out a long-term AI strategy, anticipating significant product expansion in Q4 2025 [8][11] - The integration of NewsWeb is expected to create new pipelines and increase deal sizes, demonstrating the effectiveness of the company's social intelligence strategy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macro environment and highlighted the strong demand trends observed in Q3 [6][8] - The leadership emphasized the importance of social data and AI in shaping future business strategies, positioning Sprout Social as a leader in the next era of business software [10][11] Other Important Information - The company achieved a 19% automated resolution rate and a 65% reduction in time spent in the help center, showcasing improvements in customer support efficiency [21] - Sprout Social was named a preferred partner in Reddit's official data partner program, enhancing its standing in the social technology landscape [22] Q&A Session Summary Question: How does the company view its revenue growth and market momentum? - Management acknowledged the stable revenue growth and highlighted the progress in moving upmarket, with a focus on larger deals and customer segments [30] Question: What factors contributed to the increase in profitability this quarter? - Management attributed the profitability increase to revenue overperformance, improved efficiency, and strategic hiring [32]