Sprout Social Q1 2020 Earnings Report
Key Takeaways
Sprout Social reported Q1 2020 total revenue of $30.5 million, representing a 31% year-over-year increase. The company's customer base grew to 24,083, and it revised its 2020 financial outlook, taking into account the impact of COVID-19.
Total revenue was $30.5 million, up 31% year-over-year.
GAAP operating loss was ($10.9) million, compared to ($5.4) million in the first quarter of 2019.
Grew number of customers to 24,083 as of March 31, 2020.
The company expects total revenue between $31.1 and $31.2 million for the second quarter of 2020.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Forward Guidance
For the second quarter of 2020, the Company currently expects total revenue between $31.1 and $31.2 million, or overall growth of roughly 26%. Non-GAAP operating loss is expected to be between ($8) million and ($7) million. Non-GAAP net loss per share of between ($0.15) and ($0.14) based on approximately 50.5 million basic shares of common stock outstanding.
Positive Outlook
- Expects organic growth rate will exceed reported growth rate by a mid to high single digit percentage point range.
- The low end of our 2020 guidance range assumes that we see no improvement to our business, relative to what we saw in March and April, for the remainder of the year.
- The midpoint and high-end of our range reflect marginal improvements to the business, consistent with the trends we’ve seen during April, with variation based on how quickly those trends materialize.
Challenges Ahead
- The Company’s second quarter and 2020 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control, including the impact of COVID-19 on our financial performance and customer demand.
- If actual results vary from these assumptions, the Company’s expectations may change.
- There can be no assurance that the Company will achieve these results.