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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.
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 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.
- Modeled lowest customer tier ARR to zero exiting 2023, which believed reduces forecast risk of this business that has been strategically de-prioritized.
- The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating income (loss).