Dec 31, 2023

Sprout Social Q4 2023 Earnings Report

Sprout Social's Q4 2023 financial results were announced, showcasing growth and strategic advancements.

Key Takeaways

Sprout Social reported a revenue of $93.6 million, a 34% increase compared to Q4 2022. The company's ARR reached $385.2 million, marking a 30% year-over-year growth. While GAAP operating loss was ($18.2) million, non-GAAP operating income stood at $1.7 million.

Revenue increased by 34% year-over-year, reaching $93.6 million.

ARR grew to $385.2 million, a 30% increase compared to the previous year.

GAAP operating loss was ($18.2) million, while non-GAAP operating income was $1.7 million.

The company expanded its customer base with key additions and renewals.

Total Revenue
$93.6M
Previous year: $69.7M
+34.3%
EPS
$0.02
Previous year: $0.03
-33.3%
Customers > $10k ARR
8.69K
Previous year: 6.65K
+30.6%
Customers
1.4K
Previous year: 972
+43.9%
Gross Profit
$72.6M
Cash and Equivalents
$49.8M
Previous year: $79.9M
-37.7%
Free Cash Flow
-$279K
Previous year: $2.6M
-110.7%
Total Assets
$397M
Previous year: $294M
+34.9%

Sprout Social

Sprout Social

Sprout Social Revenue by Segment

Forward Guidance

For Q1 2024, Sprout Social anticipates revenue between $97.2 million and $97.3 million, with non-GAAP operating income between $0.6 million and $0.7 million. Full year 2024 revenue is projected to be between $425.3 million and $425.5 million, with non-GAAP operating income between $15.0 million and $16.0 million.

Positive Outlook

  • Expects Q1 2024 revenue between $97.2M and $97.3M, reflecting growth greater than 29%.
  • Projects Q1 2024 non-GAAP operating income between $0.6M and $0.7M.
  • Anticipates full year 2024 revenue between $425.3M and $425.5M.
  • Forecasts full year 2024 non-GAAP operating income between $15.0M and $16.0M.
  • Implies roughly 220bps year-over-year Non-GAAP operating margin improvement for full year 2024.

Challenges Ahead

  • Outlook is based on assumptions that are subject to change and outside of the Company’s control.
  • There can be no assurance that the Company will achieve these results.
  • Company does not provide guidance for operating loss.
  • Company does not provide guidance for net loss per share.
  • Company does not provide guidance for operating margin.

Revenue & Expenses

Visualization of income flow from segment revenue to net income