Sprout Social set for worst day after FY revenue forecast cut

Sprout Social

03/05/2024 15:12

** Shares of social media software provider Sprout Social
Inc  SPT.O  slumps nearly 33% to $31.91, set for record one-day
percentage plunge
    ** Stock falls as much as $30.15, lowest in 3-1/2 years
    ** Co cuts FY revenue forecast to $405.0 mln-$406.0 mln from
$425.3 mln-$425.5 mln earlier
    ** Co says it "underestimated the magnitude of enterprise
seasonality," and faced sales execution challenges, prompting
the forecast slash
    ** At least 4 brokerages downgrade the stock and 10 slash
their price targets
    ** With fewer metrics and focus on second half of the year,
earliest turn-around is likely several quarters away - Piper
Sandler
    ** Including session losses, stock has halved in value this
year

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))