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Sprout Social
🇺🇸 NASDAQ:SPT
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OverviewEarningsDividends
•
Mar 31, 2021

Sprout Social Q1 2021 Earnings Report

Sprout Social's Q1 2021 financial results exceeded guidance, with revenue growth and positive free cash flow achieved.

Key Takeaways

Sprout Social announced strong Q1 2021 results, exceeding guidance with a 34% increase in total revenue to $40.8 million and the addition of a record number of net-new customers. The company also achieved positive free cash flow for the first time and raised its 2021 guidance.

Total revenue increased by 34% year-over-year to $40.8 million.

The number of customers grew to 28,122 as of March 31, 2021.

GAAP operating loss improved to ($6.2) million, compared to ($10.9) million in the first quarter of 2020.

Company generated positive free cash flow for the first time, reaching $3.4 million.

Total Revenue
$40.8M
Previous year: $30.5M
+33.7%
EPS
-$0.05
Previous year: -$0.14
-64.3%
Customers
3.51K
Previous year: 2.4K
+46.2%
Cash and Equivalents
$102M
Previous year: $137M
-25.5%
Free Cash Flow
$3.4M
Previous year: -$4.8M
-170.8%
Total Assets
$241M

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For Q2 2021, Sprout Social expects total revenue between $43.0 and $43.1 million, representing 37% growth. Non-GAAP operating loss is projected between ($5.4) million and ($5.0) million, with a non-GAAP net loss per share of between ($0.10) and ($0.09). For the full year 2021, the company updated guidance to total revenue between $176 and $177 million, representing 32% to 33% growth. Non-GAAP operating loss is expected between ($18.5) and ($18.0) million, and non-GAAP net loss per share is projected between ($0.35) and ($0.34).

Positive Outlook

  • Total revenue growth of 37% is expected for Q2 2021.
  • Full year revenue is projected to grow 32% to 33%.
  • Operating margin is expected to improve by more than 500bps year-over-year.
  • Revenue between $43.0 and $43.1 million is expected in Q2 2021.
  • Full year revenue between $176 and $177 million is expected.

Challenges Ahead

  • Non-GAAP operating loss between ($5.4) million and ($5.0) million is expected for Q2 2021.
  • Non-GAAP net loss per share of between ($0.10) and ($0.09) is expected for Q2 2021.
  • Non-GAAP operating loss between ($18.5) and ($18.0) million is expected for the full year 2021.
  • Non-GAAP net loss per share of between ($0.35) and ($0.34) is expected for the full year 2021.
  • Financial outlook is subject to change based on various assumptions and external factors, including the impact of COVID-19.

Company Overview

Full financial data and analysis

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