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Mar 31, 2024
Sprout Social Q1 2024 Earnings Report
Sprout Social's financial performance in Q1 2024, marked by revenue growth and strategic leadership transition.
Key Takeaways
Sprout Social reported a 29% increase in revenue, reaching $96.8 million in Q1 2024. The company grew its customer base with over $10,000 and $50,000 in ARR, while also announcing a CEO succession plan.
Revenue increased by 29% year-over-year, reaching $96.8 million.
The number of customers contributing over $10,000 in ARR grew by 24% year-over-year.
The number of customers contributing over $50,000 in ARR grew by 44% year-over-year.
CEO succession plan was announced, with Ryan Barretto succeeding Justyn Howard.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional services and other Revenue
CapyFin.com Forward Guidance
For Q2 2024, Sprout Social anticipates revenue between $98.5 million and $98.6 million, with non-GAAP operating income between $4.6 million and $5.0 million, and non-GAAP net income per share between $0.07 and $0.08. For the full year 2024, revenue is projected to be between $405.0 million and $406.0 million, with non-GAAP operating income between $28.0 million and $29.0 million, and non-GAAP net income per share between $0.45 and $0.46.
Positive Outlook
- Expects revenue growth of greater than 24% for Q2 2024.
- Anticipates non-GAAP operating income between $4.6 million and $5.0 million for Q2 2024.
- Projects non-GAAP net income per share between $0.07 and $0.08 for Q2 2024.
- Forecasts full year 2024 revenue between $405.0 million and $406.0 million.
- Estimates full year 2024 non-GAAP operating income between $28.0 million and $29.0 million.
Challenges Ahead
- Q1 underperformance was factored into the reduced 2024 revenue forecast.
- Enterprise seasonality was underestimated, impacting Q1 results.
- Sales execution headwinds were self-induced during Q1.
- There is no assurance that the company will achieve the projected results.
- The company does not provide guidance for operating loss, net loss per share, or operating margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income