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Dec 31, 2024
Sprout Social Q4 2024 Earnings Report
Sprout Social reported a solid fourth quarter in 2024, with significant revenue growth and improved operating income, driven by strong performance in subscription services.
Key Takeaways
Sprout Social delivered a solid fourth quarter, with revenue increasing by 14% year-over-year to $107.1 million. The company significantly improved its GAAP operating loss and achieved positive non-GAAP operating income, demonstrating strong financial health and operational efficiency.
Revenue increased by 14% year-over-year to $107.1 million in Q4 2024.
GAAP operating loss improved to ($13.7) million from ($18.2) million in Q4 2023.
Non-GAAP operating income reached $11.4 million, a significant increase from $1.7 million in Q4 2023.
Cash and equivalents totaled $90.2 million as of December 31, 2024, with net cash provided by operating activities at $4.1 million.
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 the first quarter of 2025, Sprout Social expects total revenue between $107.2 million and $108.0 million, and non-GAAP operating income between $8.5 million and $9.5 million. For the full year 2025, the company anticipates total revenue between $448.1 million and $453.1 million, and non-GAAP operating income between $38.2 million and $43.2 million.
Positive Outlook
- Projected revenue growth for Q1 2025 and full year 2025.
- Anticipated positive non-GAAP operating income for Q1 2025 and full year 2025.
- Continued focus on execution, winning the enterprise, driving customer health, and expanding partnership ecosystem.
- Expected growth in customer engagement.
- Strong foundation laid for future growth in 2025 and beyond.
Challenges Ahead
- Guidance is based on assumptions subject to change and outside the Company's control.
- No assurance that the Company will achieve the projected results.
- Does not provide GAAP guidance for operating loss or net loss per share due to estimation difficulties.
- Unavailability of reliable estimates for certain items could significantly impact future financial results.
- Potential for actual results to vary greatly from assumptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income