Jun 30, 2024

Sprout Social Q2 2024 Earnings Report

Sprout Social's Q2 2024 financial results were announced, revealing revenue growth and progress in customer acquisition.

Key Takeaways

Sprout Social reported Q2 2024 revenue of $99.4 million, a 25% increase year-over-year. The company grew its customer base, with significant increases in customers contributing over $10,000 and $50,000 in ARR. While GAAP operating and net losses were reported, non-GAAP operating and net incomes showed improvements compared to the previous year. The company is tracking ahead of its plan and building momentum for a stronger second half of the year.

Revenue reached $99.4 million, representing a 25% increase compared to Q2 2023.

The number of customers contributing over $10,000 in ARR grew by 21% year-over-year, reaching 8,966.

The number of customers contributing over $50,000 in ARR increased by 38% year-over-year, totaling 1,545.

Non-GAAP operating income was $5.3 million, up from $1.9 million in Q2 2023.

Total Revenue
$99.4M
Previous year: $79.3M
+25.3%
EPS
$0.09
Previous year: $0.07
+28.6%
Customers
1.55K
Previous year: 1.12K
+38.1%
Gross Profit
$77M
Cash and Equivalents
$80.9M
Previous year: $74.4M
+8.8%
Free Cash Flow
$2.5M
Previous year: $6.03M
-58.6%
Total Assets
$394M

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For Q3 2024, Sprout Social anticipates revenue between $101.9 million and $102.1 million, non-GAAP operating income between $6.5 million and $7.5 million, and non-GAAP net income per share between $0.12 and $0.13. 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

  • Total revenue between $101.9 million and $102.1 million, or growth of greater than 19%.
  • Non-GAAP operating income to be between $6.5 million and $7.5 million.
  • Non-GAAP net income per share of between $0.12 and $0.13 based on approximately 57.1 million weighted-average shares of common stock outstanding.
  • Total revenue to be between $405.0 million and $406.0 million.
  • Non-GAAP net income per share between $0.45 and $0.46 based on approximately 57.1 million weighted-average shares of common stock outstanding.

Revenue & Expenses

Visualization of income flow from segment revenue to net income