Brief: Sprout Social Q2 EPS USD -0.21

Sprout Social

06/08/2025 21:05

Overview

Sprout Social Q2 revenue rises 12% yr/yr, beating analyst expectations

Non-GAAP net income for Q2 increases to $10.7 mln, up from $4.9 mln

The provider of social media management tools to businesses highlights NewsWhip purchase to enhance predictive intelligence capabilities

Outlook

Sprout Social sees Q3 revenue between $114.4 mln and $115.2 mln

Company expects full-year revenue between $452.9 mln and $455.9 mln

Sprout Social forecasts Q3 non-GAAP EPS between $0.15 and $0.16

Company anticipates full-year non-GAAP EPS between $0.71 and $0.75

Result Drivers

CUSTOMER ADOPTION - Co attributes revenue growth to increased customer adoption and expansion within existing accounts

NEWSWHIP ACQUISITION - Acquisition of NewsWhip enhances predictive intelligence capabilities, per CEO Ryan Barretto

STRATEGIC PARTNERSHIPS - Scaling growth through strategic partnerships cited as key driver

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$111.78 mln
$110.90 mln (12 Analysts)
Q2 EPS
-$0.21
Q2 Net Income
-$11.98 mln
Q2 Gross Profit
$86.84 mln
Q2 Operating Expenses
$99.16 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Sprout Social Inc is $27.00, about 39.9% above its August 5 closing price of $16.23

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nGNX1yCNkc

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)