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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.
Sprout Social
Sprout Social
Sprout Social Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional services and other Revenue
CapyFin.com 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.
- The financial outlook is subject to change based on various assumptions.
- The ongoing COVID-19 pandemic may impact financial performance and customer demand.
- Unavailability of reliable estimates for certain items makes reconciliation to GAAP measures difficult.