Sprout Social Inc Class A ( (SPT) ) has released its Q3 earnings. Here is a breakdown of the information Sprout Social Inc Class A presented to its investors.
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Sprout Social, Inc. is a global leader in social media management and analytics software, offering a comprehensive suite of tools for brands to drive business growth through strategic social media use. In its latest earnings report for the third quarter of 2024, Sprout Social announced a 20% year-over-year revenue increase, reaching $102.6 million. The company also reported a significant improvement in its non-GAAP operating income, which rose to $7.5 million from a loss of $0.6 million in the same quarter last year.
Key performance metrics for the quarter include a 12% increase in customers contributing over $10,000 in annual recurring revenue and a 29% increase in those contributing over $50,000. Additionally, Sprout Social highlighted its success in securing new and expanded partnerships with major brands such as Zoom, Honda, and the United States Coast Guard. The company’s strategic focus on product leadership and enterprise segment expansion continues to drive its competitive positioning.
Despite reporting a GAAP net loss of $17.1 million, down from $23.0 million in the prior year, Sprout Social’s non-GAAP figures show a positive trend with a net income of $7.3 million. The company also generated $9.0 million in net cash from operating activities, marking a significant turnaround from the $5.5 million cash outflow reported a year earlier. Sprout Social’s recent product innovations, including AI-driven insights and integrations with platforms like Salesforce, reflect its commitment to enhancing customer service and operational efficiencies.
Looking ahead, Sprout Social remains optimistic about its growth prospects, projecting revenue between $106.3 million and $107.1 million for the fourth quarter of 2024. The company anticipates further improvements in non-GAAP operating income and expects continued expansion of its innovative offerings and global market presence.
