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Sprout Social (SPT)

Sprout Social offers deep social media listening and analytics, social management, customer care and advocacy solutions to more than 25,000 brands and agencies worldwide. Sprout’s unified platform integrates the power of social throughout every aspect of a business and enables social leaders at every level to extract valuable data and insights that drive their business forward. Headquartered in Chicago, Sprout operates across major social media networks, including Twitter, Facebook, Instagram, Pinterest, YouTube and LinkedIn.

Company profile

Ticker
SPT
Exchange
CEO
Justyn Howard
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Simply Measured, Inc. • Sprout Social Limited • Sprout Social UK Ltd • Sprout Social Canada, Limited • TTAGG, Inc. ...
IRS number
272404165

SPT stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$68.00
Low target
$66.00
High target
$70.00
Piper Sandler
Maintains
Overweight
$70.00
3 Aug 22
Morgan Stanley
Maintains
Equal-Weight
$66.00
14 Jul 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

3 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 68.56M 68.56M 68.56M 68.56M 68.56M 68.56M
Cash burn (monthly) 4.37M 3.31M 4.84M 3.41M (no burn) (no burn)
Cash used (since last report) 13.31M 10.09M 14.77M 10.4M n/a n/a
Cash remaining 55.25M 58.48M 53.79M 58.16M n/a n/a
Runway (months of cash) 12.7 17.7 11.1 17.0 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
8 Sep 22 Howard Justyn Russell Class A Common Stock Sell Dispose S Yes No 61.33 200 12.27K 0
8 Sep 22 Howard Justyn Russell Class A Common Stock Sell Dispose S Yes No 60.78 8,032 488.18K 200
8 Sep 22 Howard Justyn Russell Class A Common Stock Sell Dispose S Yes No 59.71 7,568 451.89K 8,232
8 Sep 22 Howard Justyn Russell Class A Common Stock Sell Dispose S Yes No 58.982 3,200 188.74K 15,800
8 Sep 22 Howard Justyn Russell Class A Common Stock Sell Dispose S Yes No 58.171 1,000 58.17K 19,000
8 Sep 22 Howard Justyn Russell Class A Common Stock Conversion Acquire C Yes No 0 20,000 0 20,000
8 Sep 22 Howard Justyn Russell Class B Common Stock Class A Common Stock Conversion Dispose C Yes No 0 20,000 0 2,636,471
6 Sep 22 Preto Joseph Del Class A Common Stock Sell Dispose S No Yes 56.39 1,500 84.59K 126,735
6 Sep 22 Barretto Ryan Paul Class A Common Stock Sell Dispose S Yes Yes 56.907 2,519 143.35K 304,575
6 Sep 22 Barretto Ryan Paul Class A Common Stock Sell Dispose S Yes Yes 56.098 2,313 129.75K 307,094
13F holders Current Prev Q Change
Total holders 248 274 -9.5%
Opened positions 19 38 -50.0%
Closed positions 45 67 -32.8%
Increased positions 112 122 -8.2%
Reduced positions 85 88 -3.4%
13F shares Current Prev Q Change
Total value 2.9B 3.61B -19.7%
Total shares 51.1M 47.4M +7.8%
Total puts 398K 295.4K +34.7%
Total calls 274.6K 401.7K -31.6%
Total put/call ratio 1.4 0.7 +97.1%
Largest owners Shares Value Change
Vanguard 3.92M $227.85M +6.5%
BLK Blackrock 3.91M $227.29M +6.1%
New Enterprise Associates 13 3.08M $139.99M 0.0%
MCQEF Macquarie 2.78M $161.39M +15.0%
Goldman Sachs & Co 2.34M $106.2M 0.0%
IVZ Invesco 1.77M $102.88M -3.1%
Fred Alger Management 1.52M $88.49M -12.6%
Clearbridge Advisors 1.39M $80.89M +13.7%
FMR 1.23M $71.37M +40.0%
Wasatch Advisors 1.16M $67.14M NEW
Largest transactions Shares Bought/sold Change
Wasatch Advisors 1.16M +1.16M NEW
Jennison Associates 1.06M +519.06K +95.3%
Bamco 500K +500K NEW
JPM JPMorgan Chase & Co. 510.23K +401.9K +371.0%
Driehaus Capital Management 366.33K +366.33K NEW
MCQEF Macquarie 2.78M +363.38K +15.0%
FMR 1.23M +351.37K +40.0%
Lord, Abbett & Co. 320.13K -319.15K -49.9%
Wellington Management 1.02M +288.05K +39.5%
Victory Capital Management 636.54K +280.75K +78.9%

Financial report summary

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Competition
Sprinklr
Risks
  • If we fail to attract new customers and retain and increase the spending of existing customers, our revenue, business, results of operations, financial condition and growth prospects would be harmed.
  • We have a history of losses and may not achieve profitability in the future.
  • Our rapid growth and limited history with key features of our platform make it difficult to evaluate our prospects and future operating results.
  • We have experienced rapid revenue growth in recent periods and our recent growth rates may not be indicative of our future growth.
  • Our platform and products are dependent on APIs built and owned by third parties, including social media networks, and if we lose access to data provided by such APIs or the terms and conditions on which we obtain such access become less favorable, our business could suffer.
  • If we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected.
  • If we fail to adapt and respond effectively to rapidly changing technology, new social media platforms, evolving industry standards or changing customer needs, requirements, tastes or preferences, our products may become less competitive.
  • If we do not adequately fund our research and development efforts, or use research and development teams effectively, we may not be able to compete effectively, and our business and operating results may be harmed.
  • If we fail to offer high-quality customer support, or if the cost of such support is not consistent with corresponding levels of revenue, our business and reputation may be harmed.
  • Our international sales and operations subject us to additional risks and costs, including exposure to foreign currency exchange rate fluctuations, that can adversely affect our business, operating results and financial condition.
  • If we are unable to develop and maintain successful relationships with channel partners, our business, results of operations and financial condition could be harmed.
  • Changes in the sizes or types of organizations that purchase our platform or products could affect our business and our financial results may fluctuate due to increasing variability in our sales cycles.
  • We have incurred and expect to continue to incur significantly increased costs and substantial demands on management time to operate as a public company.
  • Any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business.
  • We rely upon third parties to operate our platform and any disruption of or interference with our use of such third party providers would adversely affect our business, results of operations and financial condition.
  • We are subject to subscription and payment processing risk from our third-party vendors and any disruption to such processing systems could adversely affect our business and results of operations.
  • Real or perceived errors, failures or bugs in our platform or products could materially and adversely affect our operating results and growth prospects.
  • The market in which we operate is competitive, and if we do not compete effectively, our operating results could be harmed.
  • Our business depends on a strong brand, and if we are not able to maintain, develop, and enhance our brand, our business and operating results may be negatively impacted. Moreover, our brand and reputation could be harmed if we were to experience significant negative publicity.
  • Changes in laws and regulations related to the internet, perceptions toward the use of social media and changes in internet infrastructure itself may diminish the demand for our platform or products and could adversely affect our business and results of operations.
  • We are subject to U.S. economic sanctions and export control and anti-corruption laws and regulations that could impair our ability to compete in international markets or subject us to liability if we violate such laws and regulations.
  • Our use of “open source” software could negatively affect our ability to offer and sell access to our platform and products and subject us to possible litigation.
  • Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
  • We may be subject to litigation, disputes or regulatory inquiries for a variety of claims, which could adversely affect our results of operations, harm our reputation or otherwise negatively affect our business.
  • Our share price has been and may continue to be volatile, and you could lose all or part of your investment.
  • The dual class structure of our common stock and the existing ownership of capital stock by our Co-Founders have the effect of concentrating voting control with our Co-Founders for the foreseeable future, which will limit the ability of our other investors to influence corporate matters.
  • We cannot predict the effect our dual class structure may have on the market of our Class A common stock.
  • Future sales of our common stock in the public market could cause our share price to fall.
  • We have never paid dividends on our capital stock and we do not intend to pay dividends for the foreseeable future.
  • Our charter documents and Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of our stock.
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our
  • stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • Failure to maintain effective internal control over financial reporting could result in our failure to accurately or timely report our financial condition or results of operations, which could have a material adverse effect on our business and stock price.
  • Taxing authorities may successfully assert that we should have collected or withheld, or in the future should collect or withhold, sales and use, gross receipts, value added, federal, state, or foreign employment, or similar taxes and may successfully impose additional obligations on us, and any such assessments or obligations could adversely affect our business, financial condition and results of operations.
  • Our ability to utilize our net operating loss carryforwards may be limited.
  • Inability or failure to protect our intellectual property rights could impair our business.
  • Third party intellectual property infringement claims could impair our business.
  • We may make acquisitions of, or invest in, other businesses or technologies, which may divert our management’s attention and result in the incurrence of indebtedness or dilution to our stockholders. We may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments.
  • We depend largely on the continued service of our senior management and other key employees, the loss of any of whom could adversely affect our business, results of operations and financial condition.
  • If we cannot attract and retain qualified personnel or maintain our culture as we grow, we may be unable to execute our business strategy.
  • Our recent growth and any future growth in headcount may be difficult to manage effectively.
  • We may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs.
Management Discussion
  • The increase in subscription revenue was primarily driven by revenue from new customers and expansion within existing customers. The total number of customers grew from 29,612 as of June 30, 2021 to 33,620 as of June 30, 2022. Customers contributing over $10,000 in ARR grew 47% versus the prior year and customers contributing over $50,000 in ARR grew 88% versus the prior year. The increase in new customers was primarily driven by our growing sales force capacity to meet market demand. Expansion within existing customers was driven by our ability to increase the number of users, social profiles and products purchased by customers. This is in part attributable to the expansion of use-cases across various functions within our existing customers’ organizations.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: ASC, conflict, Dublin, explore, project, Russia, target, TikTok, Ukraine
Removed: bad, characterized, disease, exclusively, Health, identified, legacy, March, obtained, pay, Simply, strong, World