Sprout Social Earnings: What To Look For From SPT

StockStory
06 Nov 2024
Sprout Social Earnings: What To Look For From SPT

Social media management software company Sprout (NASDAQ:SPT) will be reporting results tomorrow afternoon. Here’s what to expect.

Sprout Social met analysts’ revenue expectations last quarter, reporting revenues of $99.4 million, up 25.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and billings estimates. It added 143 enterprise customers paying more than $10,000 annually to reach a total of 8,966.

Is Sprout Social a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sprout Social’s revenue to grow 19.3% year on year to $102 million, slowing from the 31% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprout Social has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Sprout Social’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy traded up 3.1% following the results while VeriSign was down 2.1%.

Read our full analysis of GoDaddy’s results here and VeriSign’s results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 7% on average over the last month. Sprout Social is down 4% during the same time and is heading into earnings with an average analyst price target of $41.17 (compared to the current share price of $26.74).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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