Sprout Social, Inc · NASDAQ:SPT
Sprout Social — Q1 2025 Earnings Presentation
28 slides from Sprout Social's earnings presentation, May 8, 2025
Slide 1: Investor Presentation 1Q FY25
Investor Presentation 1Q FY25
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: 1Q FY2025 Results
10 FY2025 Results @ sproutsocial wy
Slide 4: Customers in 100+ countries
16% 13% ACV Growth Revenue Growth ~30,000 Customers in 100+ countries 99% 77% Subscription Gross Profit Revenue *All financial metrics are as of or for the quarter ended 3/31/25. Revenue and ACV growth represents year-over-year growth of Q1 2025 over Q1 2024. 4
Slide 5: Q1 FY2025 Financial Overview
Q1 FY2025 Financial Overview ($ Millions) Q1 FY2025 YoY (vs. Q1 FY2024) Total Revenue $109.3M $96.8M Customers Contributing >=$10k in ARR 9,381 8,823 Customers Contributing >=$50k in ARR 1,766 1,449 Average Contract Value (ACV) $14,961 $12,892 RPO $360.2M $290.0M cRPO $255.8M $210.6M Non-GAAP Gross
Slide 6: Revenue
Revenue ($ Millions) 109.3 $107.1 $ $102.6 $99.4 $96.8 $93.6 $85.5 $79.3 $75.2 $69.7 $65.3 - | == 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1924 2024 3Q24 4Q24 1025 sproutsocial
Slide 7: Non-GAAP Operating Income (Loss)
Non-GAAP Operating Income (Loss) ($ 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 Medical Device Manufacturer
LAND Customer Story Why Sprout? Customer: Fortune 500 Medical Device Manufacturer Sprout enables this company to: Products Benefits ● Reduce risk by centralizing and simplifying governance of 100+ team members in 150+ ● Marketing Cloud ● Streamlined regions operations and ● Listening increased ● Incr
Slide 11: LAND Customer Story: Fortune Food and Beverage Manufacturer
LAND Customer Story Why Sprout? Customer: Fortune 500 Food and Beverage Manufacturer Sprout enables this company to: ● Centralize all marketing and consumer Products support into one intuitive, scalable platform. Benefits ● Listening ● Optimize campaign performance in real-time ● Real-time using feed
Slide 12: EXPAND Customer Story: Fortune Restaurant Chain
EXPAND Customer Story Why Sprout? Customer: Fortune 500 Restaurant Chain Sprout enables this company to: ● Unify social customer care and review Products Benefits management across thousands of locations, all within Salesforce, their system of record ● Service Cloud ● Improved omni- channel agent ● D
Slide 13: Guidance
Guidance ($ Millions, except EPS) Q2 FY2025 FY2025 Total Revenue $110.4 - $111.2 $448.9 - $453.9 Non-GAAP Operating Income $8.4 - $9.4 $40.7 - $45.7 Non-GAAP Net Income Per Share $0.14 - $0.16 $0.69 - $0.77 Weighted average shares of 58.8 59.1 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 Chief of Staff CTO SVP, Customer Experience leadership team Heidi Jonas General Counsel Mike Wolff CRO Scott Morris CMO Crystal Boysen Chief People Officer Team background: 16
Slide 17: Long Term Operating Model
Long Term Operating Model Medium to Longer 2022 2023 2024 1Q25 Term Goals* Revenue Growth 35% 31% 22% 13% >$1B Non-GAAP 77% 78% 79% 79% >80% Gross Margin Non-GAAP -2% 1% 7% 11% >20% Operating Margin Non-GAAP FCF 3% 3% 7% 18% 20-22% Margin Chart displays year over year growth. Non-GAAP Gross Margin,
Slide 18: Corporate Overview
Corporate Overview @ sproutsocial
Slide 19: With more than 5.24 billion consumers using social media
With more than Social media has fundamentally 5.24 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
Appendix Sprout Social, Inc. Summary and Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share data) Reconcillation of Non-GAAP Financlal Measures Reconcillation of Non-GAAP operating Income Loss from operations Stock-based compensation expense Amortization of acq
Slide 26: Appendix
Appendix Gross Margin Gross profit 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 assets
Slide 27: Appendix
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 28: Appendix
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