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Dec 31, 2021
Sprout Social Q4 2021 Earnings Report
Sprout Social had a strong Q4, exceeding guidance with significant year-over-year growth in revenue and ARR, driven by investments in market leadership and R&D.
Key Takeaways
Sprout Social reported Q4 2021 financial results, with total revenue of $53.3 million, a 43% increase year-over-year. The company's ARR reached $224.2 million, up 42% compared to the previous year. While GAAP operating and net losses were reported, the company saw positive net cash generated by operating activities and free cash flow.
Total revenue reached $53.3 million, a 43% increase year-over-year.
ARR grew to $224.2 million, up 42% compared to the fourth quarter of 2020.
GAAP operating loss was ($9.7) million, while non-GAAP operating loss was ($2.6) million.
The number of customers grew to 31,762, up 19% year-over-year.
Revenue by Segment
Forward Guidance
For Q1 2022, Sprout Social expects total revenue between $56.1 and $56.2 million, representing 38% year-over-year growth, and a non-GAAP operating loss between ($2.2) million and ($1.8) million. For the full year 2022, the company anticipates total revenue between $249 and $250 million, a 33% increase year-over-year, and a non-GAAP operating loss between ($7.4) and ($6.0) million.
Positive Outlook
- Total revenue growth of 38% year-over-year is expected for Q1 2022.
- Full year 2022 revenue is projected to grow by 33% year-over-year.
- Operating margin improvement is expected for the full year 2022.
- Continued investment in R&D and go-to-market efforts is planned.
- Attractive unit economics are expected to contribute to financial performance.
Challenges Ahead
- Non-GAAP operating loss is expected for Q1 2022, between ($2.2) million and ($1.8) million.
- Non-GAAP operating loss is also anticipated for the full year 2022, between ($7.4) and ($6.0) million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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