Dec 31, 2019

Sprout Social Q4 2019 Earnings Report

Sprout Social's Q4 2019 results reflected revenue growth and increasing customer base.

Key Takeaways

Sprout Social reported a 26% year-over-year increase in total revenue, reaching $28.1 million, and a GAAP net loss of $25.9 million for the fourth quarter of 2019. The company's customer base grew to 23,693, with 2,185 customers contributing over $10,000 in ARR.

Total revenue increased by 26% year-over-year to $28.1 million.

GAAP operating loss was ($25.9) million, impacted by a $20.0 million stock-based compensation charge.

The number of customers grew to 23,693.

Free cash flow improved to ($4.9) million, or (17%) of revenue.

Total Revenue
$28.1M
Previous year: $22.3M
+26.3%
EPS
-$0.25
Previous year: -$0.239
+4.7%
Customers > $10k ARR
2.19K
Previous year: 1.39K
+57.2%
Customers
23.69K
Previous year: 21.14K
+12.1%
Cash and Equivalents
$135M
Free Cash Flow
-$4.92M
Total Assets
$190M

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For the first quarter of 2020, Sprout Social expects total revenue between $29.4 million and $29.9 million, and a non-GAAP net loss per share of between ($0.22) and ($0.20). For the full year 2020, the Company expects total revenue between $131.7 and $133.7 million, and a non-GAAP net loss per share of between ($0.57) and ($0.50).

Positive Outlook

  • Total revenue between $29.4 million and $29.9 million for Q1 2020.
  • Full year 2020 total revenue between $131.7 and $133.7 million.

Challenges Ahead

  • Non-GAAP operating loss between ($11.2) million and ($10.2) million for Q1 2020.
  • Non-GAAP net loss per share of between ($0.22) and ($0.20) for Q1 2020.
  • Full year 2020 non-GAAP operating loss between ($29.3) and ($25.3) million.
  • Full year 2020 non-GAAP net loss per share of between ($0.57) and ($0.50).