Mar 31, 2022

Sprout Social Q1 2022 Earnings Report

Sprout Social's Q1 2022 financial results were announced, exceeding the guidance range with strong ARR growth.

Key Takeaways

Sprout Social reported a strong first quarter in 2022, with revenue up 41% year-over-year to $57.4 million and ARR up 39% to $239.1 million. The company exceeded its guidance range and raised its full-year outlook, expecting continued growth and improved efficiency.

Total revenue was $57.4 million, a 41% increase compared to Q1 2021.

ARR reached $239.1 million, up 39% year-over-year.

The number of customers grew to 32,800, representing a 17% increase year-over-year.

The company partnered with Salesforce and announced a $100,000 annual contribution to Howard University.

Total Revenue
$57.4M
Previous year: $40.8M
+40.7%
EPS
-$0.03
Previous year: -$0.05
-40.0%
Customers > $10k ARR
5.35K
Customers
692
Previous year: 3.51K
-80.3%
Cash and Equivalents
$81.7M
Previous year: $102M
-20.2%
Free Cash Flow
$5.09M
Previous year: $3.4M
+49.7%
Total Assets
$270M
Previous year: $241M
+12.1%

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For Q2 2022, Sprout Social expects total revenue between $60.2 million and $60.3 million, and for the full year 2022, revenue between $252 million and $253 million.

Positive Outlook

  • Total revenue between $60.2 million and $60.3 million for Q2 2022, representing 35% year-over-year growth.
  • Non-GAAP operating loss between ($3.2) million and ($3.0) million for Q2 2022.
  • Non-GAAP net loss per share of approximately ($0.06) for Q2 2022.
  • Total revenue between $252 million and $253 million for the full year 2022, representing 34% to 35% year-over-year growth.
  • Non-GAAP operating loss between ($6.4) million and ($5.8) million for the full year 2022.

Challenges Ahead

  • Non-GAAP operating loss between ($3.2) million and ($3.0) million for Q2 2022.
  • Non-GAAP net loss per share of approximately ($0.06) for Q2 2022.
  • Non-GAAP operating loss between ($6.4) million and ($5.8) million for the full year 2022.
  • Non-GAAP net loss per share of between ($0.13) and ($0.12) for the full year 2022.
  • Second quarter and 2022 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 the ongoing COVID-19 pandemic on our financial performance and customer demand.