Sprout Social, Inc · NASDAQ:SPT
Sprout Social — Investor Presentation (November 2021)
29 slides from Sprout Social's investor presentation, Nov 2, 2021
Slide 1: 2021 Investor Presentation
1 2021 Investor Presentation
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer 22021 Investor Presentation 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 f
Slide 3: Key metrics as of 9/30/21
3 *All financial metrics are as of or for the period ended 9/30/21. Revenue growth represents year-over-year growth of 3Q21 over 3Q20. 30,000+ Customers in 100+ Countries 75% Gross Profit 46% Revenue Growth 99% Subscription Revenue $204M Annual Recurring Revenue >
Slide 4: Investment highlights
2021 Investor Presentation Enabling businesses to operationalize social Investment highlights 4 Mission critical system of record for digital business Recurring SaaS model (99% subscription) Founder-led leadership team and exceptional culture Disruptive inbound trial model and fast time to value Hig
Slide 5: Our history
2021 Investor Presentation 5 Our history Sprout was founded in 2010 and built on the premise that social media would change the way the world communicates and how virtually every aspect of business operates. 2011 Sprout platform introduced 2010 Founded company 2013 Hired 100th employee 2016 Series C
Slide 6: Social media has fundamentally transformed the way consumers connect with brands
2021 Investor Presentation Social media has fundamentally transformed the way consumers connect with brands 6 With more than 3.4 billion consumers using social media, businesses must adapt or risk becoming irrelevant to nearly half of the world’s population. The ways that business attract, acquire,
Slide 7: And changed the entire customer experience, across the enterprise
2021 Investor Presentation 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
Slide 8: Requiring an entirely new system of record
82021 Investor Presentation 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. Sales StrategyProductSuccessSupportMarketing
Slide 9: Sprout is the platform solution
92021 Investor Presentation 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. ProductSuccessSupportSales StrategyMarketing
Slide 10: Sprout's platform is mission-critical for more than 30,000 customers globally
102021 Investor Presentation Sprout’s platform is mission-critical for more than 30,000 customers globally
Slide 11: A powerful, fully integrated platform
2021 Investor Presentation Core Platform Expanded Capabilities Premium Add-ons 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 a
Slide 12: Providing real-time insights for brands across billions of data points
2021 Investor Presentation Providing real-time insights for brands across billions of data points Social data is an unprecedented source of business intelligence — allowing businesses to better understand their customers, markets, competitors and to shape their strategy based on real-time global ins
Slide 13: With compounding competitive advantages
2021 Investor Presentation 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
Slide 14: Meaningful barriers to entry; well positioned to lead our market
2021 Investor Presentation Direct Competitors Specialized & lack integration Platform / technology limitations Disparate systems pieced together through M&A Custom & services heavy Other Software Vendors Social cannot be compartmentalized Built on common, unique ID Anonymized data / GDPR Issues Soci
Slide 15: And entrenched network & integration ecosystem
2021 Investor Presentation And 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. 15
Slide 16: Top customer-rated platform
2021 Investor Presentation Top customer-rated platform Sprout is the top customer-rated platform across these major categories relative to our primary competitors. Our ability to earn top ratings from more than 3,000 customers across SMB, mid- market and enterprise companies alike, is a testament to
Slide 17: In a very large market
In a very large market 172021 Investor Presentation >$44B Current SAM* 2021 Estimate <1% Current Penetration* Sprout and all of our direct competitors combined today serve a small fraction of global businesses >$100B 2025 SAM Forecast* >20% Annual Growth *See Appendix for detailed calculation
Slide 18: With proven success across segments
2021 Investor Presentation With proven success across segments We believe every market segment represents a multi-billion dollar addressable market. Sprout has proven our ability to serve each part of the market effectively, with industry-leading customer satisfaction and unit economics in each. 18
Slide 19: Disruptive and efficient inbound GTM model
Disruptive and efficient inbound GTM model 192021 Investor Presentation Success & Support Account Growth Customer On-boarding RetentionInbound Trials Sales Development Demand Generation Acquisition
Slide 20: Consistently expanding ARR
2021 Investor Presentation 20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 $204,641 $189,109 $172,013 $158,268 $141,898 $130,785 $124,630 $117,846 $109,486 $102,706 $96,060$92,487 $86,161 30,70529,61228,12226,71825,55624,35624,08323,69323,06622,41821,71821,13520,761 Total Custome
Slide 21: Accelerating customer expansion
2021 Investor Presentation 21 3Q18 3Q19 3Q20 3Q21 4,380 2,790 1,965 1,133 >$10K ARR Customers 3Q18 3Q19 3Q20 3Q21 $6,665 $5,552 $4,747 $4,150 ACV Accelerating customer expansion As our platform and enterprise growth efforts unfold, larger initial deal sizes, strategy to drive higher value for existi
Slide 22: Strong economics, optimized for growth
2021 Investor Presentation Strong economics, optimized for growth Attractive returns on growth investments and a strong competitive position reinforce our investments to support long duration growth 22 2018 2019 2020 3Q21 2025 Framework Organic Revenue 54% 44% 36% 46% >30% / year Organic ARR 53% 39%
Slide 23: Our growth strategy
2021 Investor Presentation Our growth strategy We are early in our journey with multiple levers to sustain durable medium term growth 23 ‣ Capture Nascent TAM ‣ Account Expansion ‣ Platform Expansion ‣ International Expansion ‣ Category Expansion
Slide 24: Culture as a business strategy
2021 Investor Presentation Culture as a business strategy 24 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 b
Slide 25: Driven by a world-class leadership team
2021 Investor Presentation Driven by a world-class leadership team 25 Heidi Jonas General Counsel Joe Del Preto CFO Jamie Gilpin CMO Maureen Calabrese CPO Ryan Barretto President Rachael Pfenning SVP, Operations Peter Soung Dir. Product & Engineering Alan Boyce SVP, Engineering Aaron Rankin CTO Just
Slide 26: Creating value for all of our stakeholders
Creating value for all of our stakeholders 262021 Investor Presentation Social is disruptive and mission critical Attractive unit economics and durable long term growth Strategic technology partner in secularly advantaged growth market Sustainable competitive advantages Top rated culture and team In
Slide 27: Summary and Reconciliation of Non-GAAP Financial Measures
Appendix 272021 Investor Presentation 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 9/30, 2021 2020 Reconciliation of Non-GAAP operating income (loss) Lo
Slide 28: Appendix: Non-GAAP margin reconciliation
Appendix 282021 Investor Presentation $ % of Revenues $ % of Revenues $ % of Revenues $ % of Revenues Gross Margin Gross profit 57,819 73.4% 74,553 72.6% 98,032 73.7% 36,745 74.9% Stock-based compensation expense 9 0.0% 1,126 1.1% 749 0.6% 280 0.6% Non-GAAP Gross Margin 57,828 73.4% 75,679 73.7% 98,
Slide 29: Appendix: Metric definitions
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 a
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