SPT Earnings Prediction
The chart below shows how SPT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SPT sees a +7.37% change in stock price 10 days leading up to the earnings, and a -0.91% change 10 days following the report. On the earnings day itself, the stock moves by -1.57%. This data can give you a slight idea of what to expect for the next quarter's release.
SPT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
102.64M
20.00%
3.26%
Gross Margin
77.37%
1.28%
-0.12%
Operating Margin
-16.45%
-31.20%
-0.96%
Net Margin
-16.65%
-38.13%
-2.00%
EPS
-0.30
-26.83%
-0.00%
No Data Available
SPT Earnings Analysis
Sprout Social, Inc Class A Common Stock Corporation (SPT.O) Earnings Conference Call
Positive
Record Revenue Milestone: 1. Record Revenue Achievement: Sprout Social reported Q3 2024 revenue of $102.6 million, marking a significant 20% year-over-year growth and the first quarter exceeding $100 million in revenue.
Future Revenue Potential: 2. Strong Remaining Performance Obligations: The company's remaining performance obligations reached $220.7 million, reflecting a robust 31% year-over-year growth, indicating strong future revenue potential.
Customer Base Expansion: 3. Increased Customer Base: The number of customers contributing over $50,000 in ARR grew by 29% year-over-year, showcasing strong demand for Sprout's services among larger enterprises.
Free Cash Flow Performance: 4. Significant Free Cash Flow Generation: Sprout generated $9.3 million in non-GAAP free cash flow during Q3, contributing to a total of $23.1 million year-to-date, highlighting strong financial health.
Operating Income Improvement: 5. Improved Operating Income: The company achieved a non-GAAP operating income of $7.5 million in Q3, a notable improvement from a loss of $0.6 million in the same quarter last year, demonstrating enhanced operational efficiency.
Negative
Sales Cycle Challenges: 1. Increased Sales Cycle Duration: The company reported elongated sales cycles, indicating ongoing challenges in closing deals, which has been a consistent trend throughout the year.
Restructuring Impact on Finances: 2. Restructuring Costs: A restructuring in the R&D organization led to the elimination of approximately 50 roles, with an expected severance expense of around $3 million, impacting the company's financials in Q4.
Smaller Customer Segment Challenges: 3. Pressure on Smaller Customer Segment: The number of customers contributing more than $10,000 in ARR has seen deceleration compared to larger customer segments, raising concerns about potential higher churn rates in this category.
Cautious Revenue Outlook: 4. Lower Revenue Guidance: For Q4 2024, the company expects revenue in the range of $106.3 million to $107.1 million, which reflects a cautious outlook amid ongoing macroeconomic challenges.
Operating Income Outlook: 5. Non-GAAP Operating Income Decline: Despite a positive non-GAAP operating income of $7.5 million in Q3, the company anticipates only modest growth in operating income for Q4, indicating potential margin pressures ahead.
SPT FAQs
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SPT Earning Call Sentiment
Sprout Social, Inc. (SPT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SPT.O
1.15%Positive
The earnings call summary and Q&A reflect strong financial performance, including 20% revenue growth and improved margins. The optimistic guidance for Q4 and full year 2024, despite macro challenges, suggests resilience. The new partnership with Snapchat and focus on AI and automation are positive catalysts. However, competitive pressures and workforce restructuring pose risks, but the market strategy and customer success stories mitigate these concerns. Given the company's market cap, a positive stock price movement is expected over the next two weeks.
