Sprout Social Q3 2020 Earnings Report
Key Takeaways
Sprout Social reported a strong third quarter with total revenue of $33.7 million, a 27% increase year-over-year. The company grew its customer base to 25,556 and saw significant growth in customers contributing over $10,000 in ARR. Sprout Social also raised its full year 2020 guidance.
Total revenue was $33.7 million, up 27% compared to Q3 2019.
Total ARR was $141.9 million, up 30% compared to Q3 2019.
Grew number of customers to 25,556 as of September 30, 2020, up from 23,066 customers as of September 30, 2019.
GAAP net loss was ($7.0) million, compared to ($5.0) million in the third quarter of 2019.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Forward Guidance
For the fourth quarter of 2020, the Company currently expects: Total revenue between $35.8 and $35.9 million, or overall growth of 27%. We expect that our organic growth rate will exceed our reported growth rate by a mid single digit percentage point range. Non-GAAP operating loss between ($6) million and ($5.5) million. Non-GAAP net loss per share of between ($0.11) and ($0.10) based on approximately 53.1 million weighted average basic shares of common stock outstanding.
Positive Outlook
- Total revenue between $35.8 and $35.9 million, or overall growth of 27%.
- Organic growth rate will exceed reported growth rate by a mid single digit percentage point range.
- Non-GAAP operating loss between ($6) million and ($5.5) million.
- Non-GAAP net loss per share of between ($0.11) and ($0.10)
- Total revenue between $131.4 to $131.5 million, or overall growth of 28%.
Challenges Ahead
- Non-GAAP operating loss between ($6) million and ($5.5) million.
- Non-GAAP net loss per share of between ($0.11) and ($0.10)
- Non-GAAP operating loss between ($23.6) and ($23.1) million.
- Non-GAAP net loss per share of between ($0.45) and ($0.44)
- The Company’s fourth 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.