Sprout Social, Inc · NASDAQ:SPT
Sprout Social — Investor Presentation (2023)
29 slides from Sprout Social's investor presentation, 2023
Slide 1: 2023 Investor Presentation
2021 Investor Day 2023 Investor Presentation
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: Customers in 100+ Countries
34,000+ Customers in 100+ Countries >$296M 35% Annual Recurring Revenue Revenue Growth 99% 76% Subscription Revenue Gross Profit *All financial metrics are as of or for the 12 months ended 12/31/22. Revenue growth represents 2023 Investor Presentation year-over-year growth of 2022 over 2021.
Slide 4: Investments Highlights
Investments Highlights Empowering Recurring SaaS Disruptive inbound Durable moats businesses to model (99% trial model and fast and barriers to operationalize social subscription) time to value entry Mission critical Founder-led Highly scalable Large and rapidly system of record leadership team and
Slide 5: Our history
Our history Sprout was built on the premise that social media would change the way the world communicates and how virtually every aspect of business operates. 2019 2021 Launched Social Became a public Commerce company Launched Reviews 2017 add-on 2010 2013 2023 First business Hired 100th acquisition
Slide 6: Social media has fundamentally transformed the way consumers connect with brands
Social media has fundamentally Businesses must adapt or risk With more than transformed the becoming irrelevant to nearly half of way consumers 4.5 billion the world’s population. The ways that business attract, acquire, sell to and service customers is being consumers using social media completely
Slide 7: And changed the entire customer experience, across the enterprise
And changed the entire customer experience, across the enterprise This digital transformation requires virtually every part of an organization to adapt and re-tool. Social is a horizontal technology that has tangible benefits to nearly every department of a modern business; businesses must maximize t
Slide 8: 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 Advocacy 2023 Investo
Slide 9: 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 Advocacy 2023 Investor Presentation
Slide 10: Sprout's platform is mission-critical for more than 34,000 customers
Sprout’s platform is mission-critical for more than 34,000 customers globally 2023 Investor Presentation
Slide 11: A powerful, fully integrated platform
A powerful, fully integrated platform Our core platform was built to facilitate social communication. We’ve expanded our capabilities to handle new use-cases as more of the customer experience has shifted to social, and as businesses mature in their standardization of social. Core Platform Expanded
Slide 12: Providing real-time insights for brands across billions of data points
Providing real-time Social data is an unprecedented source of insights for brands business intelligence — allowing businesses to better understand their customers, markets, across billions competitors and to shape their strategy based on real-time global insights from billions of of data points cons
Slide 13: With compounding competitive advantages
With compounding competitive advantages Our approach to building powerful tools on a single code-base allows us to address the needs of a large number of brands, while using our scale to quickly compound value. The single code-base allows us to innovate quickly and deliver feature enhancements to al
Slide 14: Meaningful barriers to entry
Meaningful barriers to entry We are well positioned to lead our market. Our primary competitors have taken a different approach; other software vendors have been unable to adapt effectively to social and are leaning in to social partnerships with Sprout. Direct Competitors Other Software Vendors Speci
Slide 15: Entrenched network & integration ecosystem
Entrenched network & integration ecosystem We have deep, integrated network relationships that are increasingly hard to replicate; our expanding set of technology partner integrations is growing the value of our social system of record. 2023 Investor Presentation
Slide 16: Top customer-rated platform
Top customer-rated platform Sprout was the only social media management company recognized by customers in the 2023 G2 Best Software awards as an Enterprise Software leader. And Sprout was the only company in our space recognized across SMB, Mid-Market and Enterprise. Our leadership across markets &
Slide 17: In a very large and quickly growing market
In a very large and quickly growing market >$100B 2025 SAM Forecast* >20% Annual Growth >$44B Current SAM* 2021 Estimate <1% Current Penetration* Sprout and all of our direct competitors combined today serve a small fraction of global businesses 2023 Investor Presentation *See Appendix for detailed
Slide 18: With an increasingly strategic customer base
With an increasingly strategic customer base Our product, go to market and success strategies are aligned around the most productive customers in our TAM. We’re positioned to maximize our unit economics and capture all customers as they mature into our sweet spot over time. ● >6:1 overall LTV:CAC Ra
Slide 19: Disruptive and efficient inbound GTM model
Disruptive and efficient inbound GTM model Demand Customer Generation On-boarding Inbound Trials Acquisition Retention Success & Support Sales Account Growth Development 2023 Investor Presentation
Slide 20: Consistently expanding ARR
Consistently expanding ARR In addition to consistently growing our customer base over time, we’ve seen the value of those customers increase disproportionately, compounding our ARR growth. 36% 13% CAGR Total ARR CAGR Total Customers 2023 Investor Presentation Compound Average Growth Rate (CAGR) meas
Slide 21: Accelerating customer expansion
Accelerating customer expansion As our strategy unfolds, larger initial deal sizes, higher value existing customers and a steady penetration of larger customers each compound multi-year ACV expansion. ACV Recent Customer Highlights
Slide 22: Strong economics, optimized for growth
Strong economics, optimized for growth Attractive returns on growth investments and a strong competitive position reinforce investments to support long duration growth 2020 2021 2022 4Q22 2025 Framework Organic Revenue 36% 41% 35% 31% >30% / year Organic ARR 36% 42% 32% 32% >30% / year Non-GAAP Gros
Slide 23: Our growth strategy
Our growth strategy We are early in our journey with multiple levers to sustain durable medium term growth Lead Nascent TAM Account Expansion Platform Expansion International Expansion Category Expansion 2023 Investor Presentation
Slide 24: Culture as a business strategy
Culture as a business strategy Since the beginning, we’ve focused on building the highest quality products, an industry-leading workplace, and taking amazing care of our customers. We’re building an enduring company that our team, families, customers and investors can be proud of. Glassdoor Best Pla
Slide 25: Driven by a world-class leadership team
Driven by a world-class Justyn Howard Aaron Rankin Ryan Barretto President Joe Del Preto Jamie Gilpin John Schoenstein CEO CTO CFO CMO CRO leadership team Rachael Pfenning Gil Lara Peter Soung Alan Boyce Heidi Jonas SVP, People & Operations CCO Head of Growth SVP, Engineering General Counsel Team ba
Slide 26: Creating value for all of our stakeholders
Creating value for all of our stakeholders Industry leading Attractive unit Sustainable platform economics and durable competitive long term growth advantages Social is disruptive Strategic technology Top rated culture and mission critical partner in secularly and team advantaged growth market 2023
Slide 27: Appendix
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 Summary of Non-GAAP Financial Measures Three Months Ended 12/31, Three Months Ended 12/31 2022 2021 2022 2021 Reconci
Slide 28: Appendix
Appendix 2023 Investor Presentation
Slide 29: Appendix
Appendix Annual Recurring Revenue (“ARR”). We define ARR as the annualized revenue run rate of subscription agreements from all customers as of the last date of the specified period. We believe ARR is an indicator of the scale of our entire platform while mitigating fluctuations due to seasonality and