Sprout Social slightly beats Q3 revenue estimates

Sprout Social

05/11/2025 21:18

Overview

Sprout Social Q3 revenue slightly beats analyst expectations with a 13% year-over-year increase

Non-GAAP operating income for Q3 rises to $13.7 mln from $7.5 mln last year

Company expands enterprise segment and launches new platform integrations

Outlook

Sprout Social expects Q4 revenue between $118.2 mln and $119.0 mln

Company forecasts full-year revenue between $454.9 mln and $455.7 mln

Sprout Social anticipates Q4 non-GAAP net income per share between $0.15 and $0.17

Result Drivers

ENTERPRISE EXECUTION - Strong execution in enterprise segment through customer adoption, account expansion, and strategic partnerships, per CEO Ryan Barretto

cRPO GROWTH - Current remaining performance obligations grew 17% year-over-year, indicating strong demand

LARGE CUSTOMER GROWTH - Number of customers contributing over $50,000 in ARR increased by 21% year-over-year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$115.59 mln
$114.80 mln (12 Analysts)
Q3 EPS
-$0.16
Q3 Net Income
-$9.38 mln
Q3 Gross Profit
$89.81 mln
Q3 Operating Expenses
$98.92 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "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 $23.00, about 55.6% above its November 4 closing price of $10.21

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nGNXcbHF1c

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)