Dec 31, 2022

Sprout Social Q4 2022 Earnings Report

Sprout Social's Q4 2022 financial results were announced, revealing record net new ARR and expectations for accelerating ARR growth in 2023.

Key Takeaways

Sprout Social reported a strong fourth quarter, achieving record net new ARR. The company's revenue reached $69.7 million, a 31% increase year-over-year. Sprout Social is anticipating accelerated ARR growth in 2023.

Revenue was $69.7 million, up 31% compared to the fourth quarter of 2021.

GAAP operating loss was ($13.1) million, compared to ($9.7) million in the fourth quarter of 2021.

Non-GAAP operating income was $0.6 million, compared to a Non-GAAP operating loss of ($2.6) million in the fourth quarter of 2021.

Free cash flow was $2.6 million, compared to $2.2 million in the fourth quarter of 2021.

Total Revenue
$69.7M
Previous year: $53.3M
+30.8%
EPS
$0.03
Previous year: -$0.05
-160.0%
Customers > $10k ARR
6.65K
Customers
972
Previous year: 610
+59.3%
Cash and Equivalents
$79.9M
Previous year: $107M
-25.4%
Free Cash Flow
$2.6M
Previous year: $2.21M
+17.5%
Total Assets
$294M
Previous year: $265M
+11.0%

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For the first quarter of 2023, the Company currently expects: Total revenue between $75.0 and $75.1 million, or growth of 31% year-over-year. Non-GAAP operating loss between ($0.7) million and ($0.5) million. Non-GAAP net loss per share of ($0.01) based on approximately 55.4 million weighted-average shares of common stock outstanding.

Positive Outlook

  • Total revenue between $75.0 and $75.1 million, or growth of 31% year-over-year.
  • Services revenue will be lower than the first quarter of 2022.
  • Non-GAAP operating loss between ($0.7) million and ($0.5) million.
  • Non-GAAP net loss per share of ($0.01) based on approximately 55.4 million weighted-average shares of common stock outstanding.