Sprout Social Q3 2022 Earnings Report
Key Takeaways
Sprout Social reported a strong third quarter in 2022, with revenue reaching $65.3 million, a 33% increase year-over-year. The company's ARR also grew by 33% to $271.3 million. Despite these gains, the company reported a GAAP operating loss of $14.4 million and a GAAP net loss of $13.9 million.
Third quarter revenue was $65.3 million, up 33% year-over-year.
ARR reached $271.3 million, a 33% increase year-over-year.
GAAP operating loss was $14.4 million.
The number of customers grew to 34,258, a 12% increase year-over-year.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Forward Guidance
For the fourth quarter of 2022, Sprout Social expects total revenue between $69.8 million and $69.9 million, representing growth of more than 31% year-over-year. The company also anticipates a non-GAAP operating loss between ($1.0) million and ($0.9) million, and non-GAAP net loss per share of ($0.02) based on approximately 54.8 million weighted-average shares of common stock outstanding.
Positive Outlook
- Total revenue between $69.8 million and $69.9 million, or growth of more than 31% year-over-year.
- Non-GAAP operating loss between ($1.0) million and ($0.9) million.
- Non-GAAP operating margin improvement of more than 300bps year-over-year.
- Non-GAAP net loss per share of ($0.02) based on approximately 54.8 million weighted-average shares of common stock outstanding.
- Expect ACV growth to meaningfully accelerate into and through 2023.