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Jun 30, 2023
Sprout Social Q2 2023 Earnings Report
Sprout Social's Q2 2023 financial results were announced, exceeding the guidance range.
Key Takeaways
Sprout Social reported revenue of $79.3 million, a 29% increase compared to Q2 2022. The company's ARR reached $326.1 million, up 27% year-over-year. Sprout Social acquired a record 176 customers through their partnership with Salesforce.
Revenue was $79.3 million, up 29% compared to the second quarter of 2022.
ARR from customers contributing >$2,000 in ARR grew 33% year-over-year and represents 96% of total ARR.
ARR was $326.1 million, up 27% compared to the second quarter of 2022.
Non-GAAP net income was $3.8 million, compared to a Non-GAAP net loss of ($1.9) million in the second quarter of 2022.
Revenue by Segment
Forward Guidance
For the third quarter of 2023, Sprout Social expects total revenue between $84.1 million and $84.2 million and Non-GAAP operating loss to be between ($2.8) million and ($2.7) million. For the full year 2023, the Company currently expects total revenue to be between $328.6 million and $328.7 million and Non-GAAP operating income between $1.4 million and $1.5 million.
Positive Outlook
- Total revenue to be between $84.1 million and $84.2 million for Q3 2023.
- Non-GAAP operating loss to be between ($2.8) million and ($2.7) million for Q3 2023.
- Total revenue to be between $328.6 million and $328.7 million for the full year 2023.
- Non-GAAP operating income between $1.4 million and $1.5 million for the full year 2023.
- Expects that Q2 will represent the slowest pace of ARR growth this year.
Challenges Ahead
- Services revenue will be lower than 2022 levels for Q3 2023.
- Non-GAAP net loss per share of roughly ($0.05) for Q3 2023.
- Services revenue will be lower than 2022 levels for the full year 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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