Sprout Social Inc

Latest Results (13.10.2025):

Sprout Social Inc. reported strong financial results for the first quarter of 2025, showcasing a 13% increase in revenue, a 21% rise in current remaining performance obligations (cRPO), and expanded profitability. The company continues to focus on enterprise growth, customer adoption, and strategic partnerships to capitalize on the growing importance of social media as a key channel for brand engagement.

Revenue Growth

For the first quarter ended March 31, 2025, Sprout Social Inc. achieved total revenue of $109.3 million, marking a 13% increase compared to the same period in 2024. Additionally, the company's total remaining performance obligations (RPO) reached $360.2 million, up 24% year-over-year, while current remaining performance obligations (cRPO) grew by 21% to $255.8 million.

Profitability Expansion

The company's GAAP operating loss narrowed to ($11.2) million from ($13.3) million in the first quarter of 2024. On a non-GAAP basis, Sprout Social reported an operating income of $12.5 million, doubling from $6.0 million in the previous year. Non-GAAP net income also rose to $12.5 million compared to $5.7 million in Q1 2024.

Net Loss

Sprout Social Inc. reported a GAAP net loss of ($11.2) million for the first quarter of 2025, an improvement from ($13.6) million in the same period last year. The non-GAAP net income per share increased to $0.22 from $0.10, reflecting the company's enhanced financial performance.

Cash Position

As of March 31, 2025, the company held $101.9 million in cash, equivalents, and marketable securities, up from $90.2 million at the end of December 2024. Net cash provided by operating activities was $18.1 million, an increase from $11.2 million in Q1 2024. Non-GAAP free cash flow also saw significant growth, reaching $19.5 million compared to $11.3 million in the first quarter of the previous year.

Customer Growth

Sprout Social expanded its customer base, with the number of customers contributing over $10,000 in annual recurring revenue (ARR) growing by 6% to 9,381 as of March 31, 2025. High-value customers contributing over $50,000 in ARR increased by 22% to 1,766, reflecting the company's successful focus on enterprise clients.

Second Quarter and Full Year Outlook

The company anticipates total revenue for the second quarter of 2025 to be between $110.4 million and $111.2 million, with non-GAAP operating income projected between $8.4 million and $9.4 million. For the full year 2025, total revenue is expected to range from $448.9 million to $453.9 million, and non-GAAP operating income is forecasted between $40.7 million and $45.7 million. Non-GAAP net income per share for the full year is projected to be between $0.69 and $0.77.