SPT - Sprout Social beats Q2 top and bottom line estimates
2023-08-03 16:20:47 ET
- Sprout Social press release ( NASDAQ: SPT ): Q2 Non-GAAP EPS of $0.07 beats by $0.09 .
- Revenue of $79.3M (+29.2% Y/Y) beats by $0.57M .
- ARR from customers contributing more than $2,000 in ARR grew 33% year-over-year and represents 96% of total ARR.
- ARR was $326.1 million, up 27% compared to the second quarter of 2022.
- Total remaining performance obligations of $206.4M, up 62% year-over-year and a record 63% of ARR.
- Acquired a record 176 customers through our partnership with Salesforce.
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Q3 Outlook:
- Total revenue to be between $84.1 million and $84.2 million. Services revenue will be lower than 2022 levels.
- Non-GAAP operating loss to be between ($2.8) million and ($2.7) million.
- Non-GAAP net loss per share of roughly ($0.05) based on approximately 56.5 million weighted-average shares of common stock outstanding.
- FY Outlook:
- Total revenue to be between $328.6 million and $328.7 million. Services revenue will be lower than 2022 levels.
- We have more decisively modeled our lowest customer tier ARR to zero exiting 2023, which we believe reduces forecast risk of this business that has been strategically de-prioritized. We expect that Q2 will represent the slowest pace of ARR growth this year.
- Non-GAAP operating income between $1.4 million and $1.5 million.
- This implies year-over-year Non-GAAP operating margin improvement of roughly 200bps, compared with our prior range of 225bps to 235bps year-over-year. On a Sprout organic basis, we are raising our margin forecast for 2023 and expect that the temporal absorption of Tagger will become a positive contributor to margin expansion in 2024.
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Sprout Social beats Q2 top and bottom line estimates