Sprout Social jumps on beat-and-raise Q3, Whatsapp integration

Sprout Social

03/11/2021 12:04

** Shares of social media management software co  SPT.O  up
10.9% at $135 premarket - set for its best day since August 4
    ** Beats revenue and loss estimates - reports revenue of
$49.1 mln vs. est $47.4 mln and loss of 3 cents per share vs.
est loss of 8 cents per share  urn:newsml:reuters.com:*:nGNX3FCLKn
    ** Co updates FY guidance, now expecting total rev between
$185.8 mln and $185.9 mln - implying ~40% growth from last year
    ** SPT also announces integration with Whatsapp Business,
making it select number of providers able to offer Facebook,
Instagram and WhatsApp messaging collectively  urn:newsml:reuters.com:*:nGNX34FyJg 
    ** Brokerage BTIG raises PT to $155 from $150 on Q3 results
and Whatsapp agreement, maintains at "buy"
    ** Demand for advanced social media management tools is
rapidly growing, yet over $44 bln TAM is less than 10%
penetrated, pointing to long runway of elevated growth - BTIG
    ** Brokerage Baird raises PT by $10 to $165 after its Q3
results and "incredibly strong customer metrics", maintains
"outperform" rating
    ** Barclays also raises PT to $162 from $158
    ** 9 of 10 brokerages rate stock "buy" or higher and 1
"hold"; their median PT is $155 - Refinitiv data
    ** Through last close, Sprout had risen ~168% this year

 (Reporting by Bansari Mayur Kamdar)
 ((BansariMayur.Kamdar@thomsonreuters.com;))