Sprout Social Q2 2020 Earnings Report
Key Takeaways
Sprout Social announced strong second quarter results with total revenue of $31.4 million, up 27% year-over-year. The company grew its customer base to 24,356 and increased the number of customers contributing over $10,000 in ARR by 54% year-over-year.
Total revenue was $31.4 million, up 27% compared to the second quarter of 2019.
Grew number of customers to 24,356 as of June 30, 2020, up from 22,418 customers as of June 30, 2019.
Grew number of customers contributing over $10,000 in ARR to 2,544 customers as of June 30, 2020, up 54% compared to June 30, 2019.
The company is raising and narrowing guidance to reflect total revenue between $128 to $130.5 million for the full year 2020.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Forward Guidance
For the third quarter of 2020, the Company currently expects total revenue between $32.9 and $33.0 million, non-GAAP operating loss between ($7) million and ($6) million, and non-GAAP net loss per share of between ($0.14) and ($0.12).
Positive Outlook
- Total revenue between $32.9 and $33.0 million, or overall growth of roughly 25%.
- Organic growth rate will exceed reported growth rate by a mid to high single digit percentage point range.
- Non-GAAP operating loss between ($7) million and ($6) million.
- Non-GAAP net loss per share of between ($0.14) and ($0.12) based on approximately 50.6 million weighted average basic shares of common stock outstanding.
- Total revenue between $128 to $130.5 million for the full year 2020.
Challenges Ahead
- The Company’s third 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.
- The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating loss, or net loss per share, the most directly comparable GAAP measure to non-GAAP net loss per share.
- The Company similarly cannot provide a reconciliation between its forecasted non-GAAP operating loss and non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items