Sprout Social, Inc · NASDAQ:SPT
Sprout Social — Q4 2024 Earnings Presentation
29 slides from Sprout Social's earnings presentation, Feb 25, 2025
Slide 1: Investor Presentation 4Q FY24
Investor Presentation 4Q FY24
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements b
Slide 3: 4Q FY2024 Results
40 FY2024 Results @ sproutsocial wy
Slide 4: Customers in 100+ countries
19% 14% ACV Growth Revenue Growth ~30,000 Customers in 100+ countries 99% 78% Subscription Gross Profit Revenue *All financial metrics are as of or for the quarter ended 12/31/24. Revenue and ACV growth represents year-over-year growth of Q4 2024 over Q4 2023. 4
Slide 5: Q4 FY2024 Financial Overview
Q4 FY2024 Financial Overview ($ Millions) Q4 FY2024 YoY Comparison Total Revenue $107.1M vs. $93.6M in Q4 FY2023 Customers Contributing >=$10k in ARR 9,327 vs. 8,689 in Q4 FY2023 Customers Contributing >=$50k in ARR 1,718 vs. 1,399 in Q4 FY2023 Average Contract Value (ACV) $14,651 vs. $12,302 in Q4
Slide 6: Revenue
Revenue ($ Millions) $107.1 $102.6 $93.6 $85.5 $79.3 $75.2 $69.7 $65.3 $61.4 _ _ 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1924 3Q24 4024 sproutsocial
Slide 7: Non-GAAP Operating Income (Loss)
Non-GAAP Operating Income (Loss) ($ Millions) Non-GAAP Operating Income and Non-GAAP Operating Margin are Non-GAAP financial metrics. See appendix for reconciliations of these measures to their closest comparable GAAP measures and definitions of these Non-GAAP measures. 7
Slide 8: Average Contract Value (ACV)
Average Contract Value (ACV) ACV calculated as ending quarter ARR divided by ending quarter total customer count 8
Slide 9: Broadening Customer Adoption
Broadening Customer Adoption Recent Customer Highlights 9
Slide 10: LAND Customer Story: Fortune Retailer
LAND Customer Story Why Sprout? Customer: Fortune 500 Retailer Sprout allows this company to: ● Manage everything in one place for social, email, Products Benefits phone and review management for all agents with Service Cloud integration. ● Service Cloud ● Decrease time ● Reduce time wasted & organiz
Slide 11: LAND Customer Story: Fortune Financial Services Company
LAND Customer Story Why Sprout? Customer: Fortune 500 Financial Services Company Sprout allows this company to: ● Ease of use: Simplified workflows and reporting, replacing the incumbent's overly Products Benefits complex and resource-intensive processes. ● Marketing Cloud ● Streamline ● Customer-Centr
Slide 12: EXPAND Customer Story: Fortune Pharmaceuticals Company
EXPAND Customer Story Why Sprout? Customer: Fortune 500 Pharmaceuticals Company Sprout allows this company to: ● Manage over 100+ social users in one Products Benefits centralized tool. ● Marketing Cloud ● Create profile credentials, removing the risk ● Increased of employees and agency partners havin
Slide 13: Guidance
Guidance ($ Millions, except EPS) Q1 FY2025 FY2025 Total Revenue $107.2 - $108.0 $448.1 - $453.1 Non-GAAP Operating Income $8.5 - $9.5 $38.2- $43.2 Non-GAAP Net Income Per Share $0.14 - $0.16 $0.65- $0.74 Weighted average shares of 58.5 59.3 common stock outstanding 13
Slide 14: Growth Strategy
Growth Strategy Win The Customer Health & Partnerships & Improved Account Enterprise Adoption Ecosystem Penetration Driving increased Increasing our focus Continued partnering Accessing additional pipeline creation and on customer health with companies like budgets within strategic logo wins in and
Slide 15: Investment Highlights
Investment Highlights Empowering Recurring SaaS model Disruptive product Durable moats and businesses to (99% subscription) led model and fast barriers to entry operationalize social time to value Social system of Experienced Highly scalable Large and rapidly record, intelligence leadership team sin
Slide 16: Driven by a world-class executive leadership team
Driven by a world-class executive Ryan Barretto Joe Del Preto Rachael Pfenning Alan Boyce Colleen Geiselhart CEO CFO SVP, Operations CTO SVP, Customer Experience leadership team Heidi Jonas General Counsel Mike Wolff CRO Scott Morris CMO Crystal Boysen Chief People Erika Trautman Chief Product Officer
Slide 17: Long Term Operating Model
Long Term Operating Model Medium to Longer 2021 2022 2023 4Q24 Term Goals* Revenue Growth 41% 35% 31% 14% >$1B Non-GAAP 76% 77% 78% 80% >80% Gross Margin Non-GAAP -3% -2% 1% 11% >20% Operating Margin Non-GAAP FCF 7% 3% 3% 6% 20-22% Margin Chart displays year over year growth. Non-GAAP Gross Margin,
Slide 18: Corporate Overview
Corporate Overview @ sproutsocial
Slide 19: Social media has fundamentally transformed the way consumers connect with brands
With more than Social media has fundamentally 5.22 billion transformed the way consumers using social media consumers connect Businesses must adapt or risk becoming irrelevant with brands to nearly half of the world’s population. The ways that business attract, acquire, sell to and service customers
Slide 20: Social impacts every stage of the customer lifecycle
Attract Advocate Establish trust Protect loyalty Social impacts every stage of the Target Audience customer lifecycle Convert Prove credibility 20
Slide 21: An intuitive solution for smarter, faster business impact
Create exceptional Drive efficiency with customer experiences embedded AI Publishing Analytics Deep partnerships with all Engagement Robust insights and major social networks workflows that amplify ROI An intuitive solution for smarter, faster business impact Employee Advocacy Listening Influencer Marke
Slide 22: And changed the entire customer experience, across the enterprise
And changed the entire customer experience, across the enterprise Social is a horizontal technology that has tangible benefits to nearly every department within a modern business; businesses must adapt and re-tool to harness the power of social and maximize the value of social data. Marketing Influenc
Slide 23: Requiring an entirely new system of record
Requiring an entirely new system of record Social media is massive, scattered, multi-purpose and does not conform to our existing business systems. A centralized platform is critical to creating strategic business value. Marketing Sales Support Success Product Strategy Commerce Influencer Advocacy 23
Slide 24: Sprout is the platform solution
Sprout is the platform solution Sprout consolidates the complexity of social channels into a powerful, elegant and seamlessly integrated platform that can be leveraged across an organization. Marketing Sales Support Success Product Strategy Commerce Influencer Advocacy Influencer category expansion vi
Slide 25: Appendix: Non-GAAP Reconciliation
Appendix Sprout Social, Inc. Summary and Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share data) Reconciliation of Non-GAAP Financial Measures Reconciliation of Non-GAAP Financial Measures Three Months Ended 12/31, Three Months Ended 12/31, 2024 2023 2024 2023
Slide 26: Appendix: Non-GAAP Free Cash Flow Reconciliation
Appendix Sprout Social, Inc. Summary and Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share data) Reconciliation of Non-GAAP Financial Measures Three Months Ended 12/31, 2024 2023 Reconciliation of Non-GAAP free cash flow Net cash provided by operating activitie
Slide 27: Appendix: Margin Reconciliations
Gross Margin Gross profit Appendix Stock-based compensation expense Amortization of acquired developed technology Restructuring charges Non-GAAP gross margin Operating Margin Loss from operations Stock-based compensation expense Acquisition-related expenses ‘Amortization of acquired intangible asset
Slide 28: Appendix: Operating Income (Loss) Reconciliation
Appendix (Sin millions) Loss from operations Stock-based compensation expense Acquisition-related expenses Amortization of acquired intangible assets Restructuring charges Gain on lease modification Non-GAAP operating income (loss) GAAP operating margin Non-GAAP operating margin Sprout Social, Inc.
Slide 29: Appendix: Non-GAAP Definitions
Appendix Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from the Tagger Media, Inc. acquisition and restructuring charges. We believe non-GAAP gross profit prov