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Jun 30, 2022
Sprout Social Q2 2022 Earnings Report
Sprout Social's Q2 2022 financial results exceeded guidance, demonstrating team strength and market opportunity.
Key Takeaways
Sprout Social announced strong Q2 2022 financial results with total revenue of $61.4 million, up 37% year-over-year, and ARR of $256.1 million, up 35% year-over-year. The company grew its customer base and saw increases in customers contributing over $10,000 and $50,000 in ARR. They also raised their 2022 guidance.
Total revenue was $61.4 million, a 37% increase year-over-year.
ARR reached $256.1 million, a 35% increase year-over-year.
The number of customers grew to 33,620, a 14% increase year-over-year.
The number of customers contributing over $10,000 in ARR grew by 47% year-over-year, reaching 5,800 customers.
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 Q3 2022, Sprout Social expects total revenue between $64.9 million and $65.0 million, representing growth of more than 32% year-over-year. They anticipate a non-GAAP operating loss between ($2.4) million and ($2.0) million, and a non-GAAP net loss per share of between ($0.04) and ($0.03). For the full year 2022, the company now expects total revenue between $253.9 to $254.0 million, or growth of more than 35% year-over-year, a non-GAAP operating loss between ($5.9) million and ($5.7) million, and a non-GAAP net loss per share of between ($0.11) and ($0.10).
Positive Outlook
- Total revenue growth of more than 32% year-over-year is expected for Q3 2022.
- Full year revenue growth is expected to be more than 35% year-over-year.
- Operating margin improvement is anticipated for the full year.
- The company expects to deliver 100bps faster growth.
- The company expects better efficiency than its prior forecast.
Challenges Ahead
- A non-GAAP operating loss is expected for Q3 2022.
- A non-GAAP net loss per share is expected for Q3 2022.
- A non-GAAP operating loss is expected for the full year 2022.
- A non-GAAP net loss per share is expected for the full year 2022.
- The company does not provide guidance for operating loss