SPT Sprout Social

Jason Rechel Head of IR
Justyn Howard CEO
Joe Del Preto CFO
Ryan Barretto SVP, Global Sales
Stan Zlotsky Morgan Stanley
Kevin Kumar Goldman Sachs
Tom Roderick Stifel Nicolaus
Arjun Bhatia William Blair
David Hynes Canaccord Genuity
Alex Kurtz KeyBanc Capital Markets
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Ladies and gentlemen, thank you for standing by, and welcome to the Sprout Social First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today to Jason Rechel, Head of Investor Relations. Thank you. sir. ahead, go Please

Jason Rechel

and CALL. Sprout employees Like we're this of Operator, XXXX and first earnings you, afternoon. home from conference all working welcome you, Social's to quarter many Thank of our

results the close Global Howard; Sales, President market me CFO, discussing be Del With will announced our and issued today. CEO, press Social's Sprout of Preto; Ryan in are Joe Barretto. after release Justyn Vice We Senior

an through than effort will we providing transparency normal be and today business better business in of help Please how note that volatility. analysts to into more investors this our our our economic understand is period performing

should not granularity disclosures of and You level such us expect should be with one-time this the as future, continue in considered to nature. in

forward-looking Safe which to Securities statements, pursuant XXXX. Private the contain Harbor of Reform made the Act Litigation of are call Today's provisions will

do financial any statements date, and statements believe, financial for relied trends, as Forward-looking expect, These only, at XXXX or of our will. performance should concerning XXXX words identified such financial as by expected and the condition, and statements and our guidance and can views the undertake not future quarter business upon be to business include our full-year duty update intend, plan, second these views of anticipate, not as we seek be and any reflect representing today subsequent statements. our

to and that uncertainties risks subject could results are that materially. matters to actual address differ statements Forward-looking cause

XX-Q filed Commission, the other risks on our Exchange filings SEC to of report including discussion other a our the SEC. that our and refer with the quarterly be and disruption Securities XX-K the factors please with potential our filed Form could with and COVID-XX, For results, important to periodic affect from report actual annual

measures also press on our accordance generally and financial has will we our Web release, are of the been prepared furnished GAAP financial included financial accounting also not certain SEC in most earnings to in is site which measures available at these comparable accepted principles. with non-GAAP reconciliation to the directly discuss call, non-GAAP A measures, the During which is

the let And turn with me over that, to call Justyn.


Justyn Howard

of us. we as us respond and we that you for well-being the customer home world time At across Sprout healthy our of reflect and not everyone. the Jason, only this the and our of within people, a team, best move disruption difficult joining we from model communities, that were last to first precautions our have early has you, of those to and us company February our work the minimal cases To well-being quickly base, and implementing have keep We're The this safe, customers. organization, that have together, I'm and changed March. to have our and business is certainly crisis but to employ COVID allowed good policies situation. our priority your families to fully reported continue commitment since families, make hope team Thank grateful today. in the adapt around we to evolved. with we'll also and and began quickly ways you things that fortunate our finding are no Thank to in that end, afternoon, Sprout,

but channel the to on really We're a by social strong with interesting have behavioral our crisis digital expect customer increased seeing communication around team, agile deliver the an changes some adoption diverse for become a today and and post-COVID. business to of thoughtful seeing and brands first with Sprout, share QX also healthy impact strong We'll into we're unfold the us quarter to permanent and in and high-volume the year within continues an lot our primary of the allowed guidance may that of short, detail are make many evolve. of business abundance emerge reliance data as trends trends acceleration as how we around likely culture, decisions a rest model base, to

As have compression a degree there April [certainly] will Many the that in in more we'll mid-March. operating We eek and way Though are challenges a metrics our weeks. few foreseeable March and trending and things. the remain to for attribute recent in [Ph] some this key to of were discuss, beginning two-three future. that some for saw period many recovered

has by minimize crisis diverse helped the balanced the customer verticals exposure very on base with a of our across business. segments impact industries. segment Sprout has First, market This and and

business virtually were quickly, to of been we always about capacity new so has to the management majority adjustments within activities our virtually, transition week. implementation able done full work-from-home customer-facing were and Next, our to to getting a minimal. account operational The back

has cycles We sales rapid also high-volume where helped apply resources adapt benefit quickly daily from give most a metrics at impactful. funnel a they that This visibility and into inbound us are level. granular and key us

the engagement even to and be industries, Lastly, have retreating. some importance both as strong across to led of would a you increased channel advertising alternative communication social, to an expect

the our new In contract our travel industry. business closed largest of at one the largest expansion in fact, and deals February, April ever end we of in

the it growth we encouraged address our is invest we also remain While to time. of the for and of to global be by, a continue believe we have uncertainty the in both situation gravity will important some that the lot to and business,

an a and indicators We position, so. conservative aggressive do it's are that as operating into we'll posture wise to see we back lean from

metrics, capture posture so as this to execute well we of continue out If disproportionate we'll be Fortunately, feel positioned adjust needed. quickly as we on I turn. believe our strategy, mentioned, our to and with share our visibility we accelerate equipped to we operate market key of high

to customers develop be crisis. well-being been evolving This resources their efforts our this react to facilitate our which customers their to them increase. devote among allowed relief, visibility has quickly resources success visibility during allowed this where has us help to responsive for to to to most of resources has customers customers partners to and demand to discussions us Internally, our us peer needs and navigate also situation. verticals Understanding and and allowed have ship we've impacted network joint seen this develop our with COVID

we services enterprise advantages in engagement become Particularly increasingly expensive segment, and grow increased and our the compelling competitive see where long and customers have cycles, sales to lengthy averse implementations heavy platforms. as

feel to keep our that there While well, customers. an flexibility this a globally, for our team adapted and incredibly ability adjust time the quickly difficult be to and we to fortunate the healthy is has teams have

performance how the we're thinking a provide QX some first on minutes as the Now over with I'll and going color as few had first spend well business. rest strong We of across entire about excellent the quarter momentum an our quarter year.

total Our year-over-year QX of with XX% XX% an up for year-over-year, million, exited million first ARR million, was the to $XX.X organic and organic quarter We year-over-year. $XXX.X year-over-year. ARR XX% revenue $XXX.X revenue up of and XX% up grew was

remarkable quick demand a our across the ARR organic and board The the across accounts from Simply and in headwinds investments revenue revenue total. strong and QX every of of saw relative Measured, XXXX organic exclude metric. acceleration making, to organic As performance We our despite performance acquisition reminder, to efficiencies now for led virtually increased heavy in XX% we're revenue March.

GX thousands in Software capabilities on customer recognition we're us software recognized this especially separate based product dozens our introduced top highest is the TrustRadius new product, QX, and rewarding best categories, winning customers of Awards, and and for company because This in is by their also We reviews. in Annual including X satisfaction. for customer of

in share Looking another Joe forward detail relatively to we QX, quarter, will more expect as shortly. strong

about help own of provide additional you we modeling with your we for assumptions. the As transparency guidance to and the how some QX in think projections we're rest wanted year, to

mentioned, many of in in key we mid-March. saw I As metrics distinct our beginning compression

below demand New business all the norms, with one against churn range, churn typical below standard period from measured our XX-day fell our dropping deviation and pre-COVID. specifically

Fortunately, we've some demand ranges exceeding beginning the metrics the expected week those with on within April return prior of side X. seen the ranges

the cycle days that period. the of during April the May. but good to seen XX and We flow impact XX remains, volatility sales new of through declines expect impact three-week in with optimistic that would have typical bulk and Some remain took brunt those business we we to our of visibility

demo ranges from normal we X, the Beginning in of specifically, demand our our demand been form each XX. since. XX April the March saw are which week primary below and to requests, has recovered trials above More March ranges pipeline, fall of of pre-COVID and week sources

of for our of ranges fell period April remainder exception of March quantify a within April with to churn recovery briefly. rate slightly customer normal of quality longer during our month is levels the it Expansion XX-day norms came throughout period, this time, new we and the remained X. harder the this steady XX saw our levels ranges April. Contraction, our finally, business pre-COVID with X, While trend, recovery has and the compression, has a April April the norm good about at gross back below in of a within within Beginning week remained combination from and the which below pre-COVID ranges of demand feel to of X, fell interest. of week where those downgrades, the it's this but those

to during of of in unknowns The variation virus. to assumes the guidance the year. to we're those data, improvement it's our our stabilize. range with seen trends the of positive remainder what to for midpoint While our still we with that the April, of trends high we the The are end speed delivery, consistent waves indicators no the related in and disruption we've business, our economic business improvements saw low recovery, COVID, marginal we reflect the prolonged stimulus see on of or many feel April including quickly based end appropriate the to prudent seeing remain business the there how relative as March future guidance and

to that seen execution call the wrap the months. team, want to our pass I the saying I'm and adapt Ryan, by to past I proud off extremely our ability few we've over of up Before

customers rapid during and been channels people capture us our and positioned has usual our our remain We our deliver increasingly through to continue our we important keep on steady market expanding large, post-COVID. customers to new for well products transition platform value commitment and to and reliance deep this our share and social this our on as our expect pace. ever Our efficiency to believe as customers world-class and We've at capabilities in time, critical expanded continue seen this to category. focus this

that, our Vice quarter. I'd our like President Ryan who over Senior of customer turn some to through from will walk the now Global this Barretto, of with you Sales, stories to call And success

Ryan Barretto

led We've I've everyone to again empathy, of the thanks in environment. customers to on many and proud of and joining the Sprout exciting and like how responded in Justyn, key our for put our Thanks, has see display. us. this customer some with process, share been team this leveraging platform. of take few to the I'd ways some our values are discuss a minutes quarter really to the wins

It's In was were proposition in in and We're of seeing and is and part has our we the become we're communication. see pre-COVID comparison now way digital-first some business crash a up in trials and the resonating, times, last in this more in has even four XX% by QX weeks, way up traffic been what excited our course really baseline. social impacted Our data. communicate. important to getting we're challenging that is value Every living our our XX%, ahead. an clear we

been an Our them. to essential with things partner customers are we've platform, fortunate the for and doing amazing be

remarkable individual to crisis. leaders have organizations been to responded contributors this and It's success see sales marketing, our customer from how to

more managers, COVID-XX teams. a communication at practitioners seeing work we our was transition home social the [Ph] us registered social activity and report, predicted. on extra from media our have [Slab] for We're This with digital of is charge, building mentioned, we playbook joining things a which every listening Justyn seamless seeing Trek, our gave terms XX As largest of volume, event to are we sales to included from customer could than no listening impressive co-present. and crisis and hosting CBX and over brands at historic Twitter, in like metrics May ever daily speed X,XXX levels, both creating

The on-site that's can the market, that where our the respond and has even enterprise. technology and companies this playbook weapon secret legacy they in free user, And before for that demos, customers antiquated. are evaluations, become even use longer expect be be XX-day not just see, immediate we invest. fast the solutions We're looking able in long continues In of expensive and to to age trial value. to required partners deployments software mean that The but to with add the can custom it.

customers Sprout been before disruptive, one model our trial see of they to enabling has even free highly Our demos. competitors' implement

Earl Harrods, all past Scott, HubSpot, selecting a just for RFP hundreds quarter. few social University, State schools, accounts. were Sprout this Nile, goal Blue of Ohio provider of of Enterprises, competitive a departments brands and Scientific with incredible The the the media Ohio in their one and very Kendra Alterra Edelman ran State Mountain, that of Boston invested

that already With and the their they in Sprout, that implementing all deliver and the they to They size, and had finding I'm partner out most on rolling and all deployment quickly of security schools. a of record stakeholders, of laser-focused could pleased their say a this were started of by importantly, functionality found track usability, required successfully. to that

largest great Another North in oldest America. one and the came retailers of story from

their connecting digital are vendor, looking was previous with their and with and time giving and better struggling vendor. customers They the user needed them we're got they reliable the support. all-in-one their paramount. a an the running up During reporting to during trial evaluation, legacy on enterprise model, to like solution this sunset usability Sprout our this, Thanks of retailer for and with confidence software adoption

also their creative continue businesses to and use and ways social We are resourceful forward. driving seeing customers

keep respond learning home Trek is this free One campaign their very demand, and know Trek leveraging their and brand and ways busy demand, found using to doing to Trek about needs of and was measure Sprout. devices. In parents Every business looking well. place, themselves shelter offer a I With Sprout service to be to delivery in market and to my many stories bikes that example this response their is engage favorite is are of to efforts. well. faster perfect this for to have new more a how kids create

Sprout an Mount tap Health amazing that front plan in web System is content the conversations, analyze Another and Sinai York, New been to Sinai performance platform great future the truly one has and story social content and on from past Mount is lines. example social media. staff leveraging organization power across Ellen. their networks. Hill businesses the In amplifying and content Their them. It's an included stories has NYC appreciation content by the touching supporting major turn, about been sharing re-shared and celebrities has the this Jonah for incredible of like of into

In Sprout. rewarding time at been leading summary, to a it's be

have risen are people and new to most importantly, of the care operating at our Our And customers. challenge levels. we're taking fantastic

Our of more bring of future. the virtual able our who stand-ups, share to first. stories we and own forward version the overwhelming served daily culture This scavenger know look hunts them closer MTV support customers being put in Cribs, and people to with have our ever. that extends have of to Sprout's these to all I feel than you

to over it turn to I'll financials. that, with Joe Joe? through run And the

Joe Del Preto

We're moving results through quarter full-year XXXX. Thanks, in detail. and now on quarter for the our second you to I'll first walk Ryan. guidance

strong this results. are pleased with We quarter's

noted, $XX.X first representing the was million, for growth. total XX% year-over-year revenue As quarter Justyn

Measured Excluding growth was and driven revenue with strong the impact recurring increased products, legacy from our customers This and subscription was up from and strong execution. demand existing by Simply margins profile high revenue. XX% sales new XX% We've both maintained financial a organic year-over-year.

in was in ARR XX% in $XXX.X with customers We $XX,XXX X,XXX, quarter XX% up from was finish a number in more customers QX year-over-year. XXX to up The year-over-year. XXXX. ago reached net had new XX,XXX contributing ARR from million, QX X,XXX million, XX% ARR customers. of Organic $XXX.X and the up Total up year than QX

sizes large high-quality lead initial we deal on existing continue add to customer as customers We newer customers focus generation. and land value with increasingly to

million, on of income remainder operating our and the the statement, are unless discussing to a gross that noted, In was profit please the results count our non-GAAP to and earnings results was a reconciled note otherwise XX% GAAP just basis difficulty] In expenses, of references in all representing QX, share that margin year press quarter. margin gross last before the of XX.X% a XX%, $XX.X ago call. release [technical issued

we and as as long through needed. quickly adjust expenses, over will feel to very With term. cycles, and operating to our touched our key Justyn which granular decisions well now we our sales the investment short visibility daily Turning inform both metrics, on, crisis have into equipped posture this

marketing throughout expanding on and XXXX Sales expenses reach. from QX $XX.X or for million revenue, marketing XX% market significant our were ago. sales and XX% a down year of in made investments focused We

expectations, to our QX investments, track to our of spend. opportunities expect to lens we'll sales continue visibility through the make We have on continue and our our on the marketing finished with we look and focus hiring for environment. invest smart we'll We business into current and to optimizing

teams amazing the position are in to advantage period Our are to adapting feel people and we of that this we financial fortunate and onboarding, take business time. remote hiring of through

Research $X.X this drive We're our base while our to of and to for expenses from ago. our expand able customers. due capabilities year million new building were revenue, a in to development XX% software code area down approach our leverage and for continuing or offering single to and QX adding XX%

QX XX% XX% were which General million and we revenue, annual of trading. a up XXXX, expenses, QX not function from a did administrative This year growth public expenses of company or our for primarily was $X.X ago. and corporate have of expansion in

to percentage decrease our expect general a operations of and time. We scale over we to as revenue expenses as administrative continue

$X.X negative was QX loss share of however, year a or $X.XX expectations Non-GAAP from compared to margin per high operating million did, was net net of ago. due our or $X.X loss revenue for million net year $X.XX negative for incremental a a a XX% loss to leverage outperformance. a XX% Non-GAAP with operating a operating outperform We compares million ago. loss QX margin. This

and Turning equivalents, we to the and flow cash balance QX ended the million of from end with up sheet from cash $XXX.X XXXX. statement, million cash $XXX.X in

following executed the IPO, we greenshoe December flow was of net proceeds the our of $XX.X the quarter cash revenue QX, During end at resulting $XX.X million. in Deferred million.

unbilled remaining at up XXXX. approximately contracts, performance our million, RPO, Looking our $XX.X billed exiting with and or from million totaled obligations, $XX.X

as to the $XX.X months. We next or XX% revenue RPO of million expect XX total approximately recognize over

cash or and Operating in compared year a cash QX Free was ago. million free margin $X.X $X.X was compared a cash XX% $X.X margin negative negative free XX% year million to $X.X negative negative QX million in negative to cash flow flow flow a negative ago. million flow a

to of quarter the on in Moving revenue roughly the guidance, rate to second for range XX%. of a $XX.X total million $XX.X growth XXXX, fiscal expect of or we million

We rate. be high rate growth organic expect mid- faster our percentage total our points to reported growth to than single-digit

non-GAAP expect We of range in $X to operating million $X million. the loss

segments, Justyn to continuing As see our investment. to we to our event, of products we leverage people ensure growth. certain basis support In but to be tracking in pace we our our opportunity our daily overall are are invest a discussed, on in we business clear, our competitive optimizing increasingly of long-term and are

been free billing long we crisis couple customers our Historically, basis flexible hundred margin, payment working cash flow and a term, margins relationships adversely we're our the for been have this or points term. impacted on that and by have operating better building with are than

extent As crisis operating dynamic margin; could would persists, roughly margin free persist our the result, to be expect a this that into cash we QX. to to similar QX flow

assuming and between share $X.XX expect net approximately loss XX.X shares. non-GAAP We million $X.XX, per

of of At with For the This the guidance XXXX, of million range to compares range midpoint, XX%. expect total to expected this of full-year pre-COVID growth $XXX.X an million. reported million. $XXX.X revenue the $XXX.X overall fiscal our million we is in rate $XXX.X

organic revenue single the be adversely continue rate to XXXX and XX%. future higher customers, greater this of broader impacting captures of will virus our is forecast digit, than than including by economic rate high rate to path revenue We our unknowns, mid- many environment, growth growth certain potential reported believe our disruption prevailing growth implying a organic of recovery. which for anticipate We from that many

end how indicators stabilize assumes of we March midpoint the no those during As of what range many and with the April, the that the April for April. our our end improvement materialize. guidance course in relative margin business The seen consistent year. trends of to quickly to reflects to we through have seen high of referenced, variation XXXX business the and improvements trends we've The Justyn we range business, our low saw remainder our see based

$XX.X pre-COVID operating XXXX, expect our million For $XX.X million we million. to loss of compared non-GAAP million of range in the $XX.X range with $XX.X to

compared a $X.XX expect loss of a net per range $X.XX, shares. prior $X.XX of and XX.X with and between share non-GAAP assuming approximately $X.XX We million

discussed, The as transition social and help the the resonating opportunity digital-first opportunities summary, to relevant platform mission-critical continues our is compelling to Ryan global Justyn their customers have channel In for durability increasingly and of present as sustainable customers manage businesses. accelerate growth. to

sheet prudently give cash and balanced will balance in high flow Our managed on strong the ROI confidence of potential and capitalize our ahead. us us make degree to to continue years enable to high investments a that

happy Justyn, are take your that, of Ryan questions. and any I With Operator? to


[Operator question show Stanley. our from you, comes go Thank Instructions] Zlotsky from sir. I Stan ahead. Morgan Please first

Stan Zlotsky

much as doing is health well and and so hear company also guys, is on as you everybody the Thank call the far safety. doing I'm glad that well and to Perfect.

you First provide confidence? there revenue guidance, for a are considering And that have provide that follow-up. question and what so have to companies confidence guidance, then pulled you that's what from my really other guidance why seeing giving end, I full-year many out gives quick you

Justyn Howard

the what confidence Justyn. Yes. my of This data I'll granular lot detailed remarks, about for certainly, look but if very the business. QX thought at we our what we remainder like of as came Stan. for mentioned to when that year looks the team a and to like ability in from, and add, anything for looks us, that, has the and Thanks, us is address

that and of thousands of So, of given periods given in us into we're doing, how lot trending, which the a were thousands insight were the tens time the month, renewals those funnel of transactions recovery. to metrics top trials adding for of of of and impacted degree they gave that any the we're

which time, time while a think extrapolating that much we've cycle how has recurring predictability. on in out is for that for lot the got putting services. of kind got on out I of is that seen XX-XX of the of of the the around still is our baseline part where to that the we've of around of got top sales what guidance the lot is us average high we've recently, healthier, virtual low lower gather so, in in day remain We've improve the this the we stability allowed impact business making plays and we've a what XX% that we've we're volume kind several that those, of weeks, more and that counter We've been much felt and how in just the certainly gave put last the of detail nature level assumptions of seen about lot subscription revenue, April, we've this least a long data in there's a and rest end year, of of those trends trends been our was the more data the worst or revenue, the which of -- of to we of where situation. see ACV to we seen at a stake are that the unknown needed how us and good confidence March while the at guidance low the on quickly kind a the ground level

to felt we're provided. to is is the look falls that strong it that like that we the confident into of we really that that we that I ourselves, for but something we've mentioned. So, Where reasons guidance gave because got at going visibility the data within to in least band we're clarify

Stan Zlotsky


you looked applaud you April, certainly starting of really to that why at improvements guidance can confidence be as as in have business considering you What's activity -- it makes down and lot than in putting months current much that the you so really customers see April? help would question, levels it a I That's the me. the around it investors' road it a specifically the say, in started expectations the and do brand-new sense. to in that May are figure for Social on software Sprout six Thank think I "Hey, to pull certainly just be the out -- to you're let's out seeing set buying very environment, now qualitative data. later?" in easy trigger rather kick that to from bringing what And you.

Ryan Barretto

either, needed most because to to and become more customers. than are important in. in traffic start to inbound our has need trials base. Happy to and a they that, Stan. themes those social seeing Thanks, they and, highly This were in we're is they've the good Ryan. really it's where, digital advantage their jump customers this support in channel specifically, prioritize and terms market, got answer One, a, in I as of seeing think Justyn with what of the twofold really before, we've today And terms customer before, mentioned to social We're communicate, to platform data-driven.

social need customers, through it's at those wasn't and where get and coming So, well, things they do to one challenges working for this in got You've traffic before right? a really effectively of they more they platform on these it those be amplified time, could there and were today, or channels. weren't certainly it just doing that

raise from seek have engage. you cause platform the portion you your a And use, need to you to You've that isn't data would analytics that of the easy help. of more that if right to you're platform, now got not need the hand that and getting

actually is and able secondary the that our to with model, the free The trial enterprise into these customers, us the get trial all using point customers, including platform. there for we're

going that through So buying getting it's in for for the to customers exactly big been helping certainly to they're process. they need hand go-forward, way engaging it themselves a the us work proving on a and so, them that's and

Stan Zlotsky

guys. Perfect. helpful. Thank you, That's very


you. Thank

Chris from from Merwin comes question next go Sachs. ahead. Our Please Goldman

Kevin Kumar

for like Kevin trends on reputation Chris. the weeks. talk you and question. mid-market you're taking seeing in products in can across maybe enterprise you've trends adoption and some add-on Thanks adoption a is analytics of kind Maybe of recent and my about This for premium what your for and if recovery seen listening,

Ryan Barretto

a rich the is social listening that terms providing of and in media on listening is engaging way are messaging in our access a engagement even perspective and is The development, have period ARR content, that premium Listening, products both products that these similar happy of competitive they just in insights value Thanks, help that these point ROI changing those part different And grew time in analytics customers really data performing -- resonating can very about Kevin. jump their of the information people analytics listening action. promotions, that and proposition this types critical products social we're their ARR brands, to this listening through that This fact, of nicely of is really with analytics in take good Ryan, analytics get and are both providing is QX. can product their products from to of both and well. are in feeling they in this shape definitely they them, to Both a know there. the ahead and And to Yes. the is the the after and way. their the customers. It's from resonating, having an with we them market. positioning and tracking

they in get and and and So see to so, us, the thing just engagement, that's and of progress core lot continuing the and big of rest need been your alongside pretty differentiator been say resonating these those really the live what from platform, that's is and They Sprout. to a definitely the the of final there of both publishing for I marketplace, get that's value alongside of good in would QX products. within listening analytics products a

Kevin Kumar

Great, thank you.


you. Thank

Roderick from Please from question Stifel. Tom next Our comes ahead. go

Tom Roderick

what done, able April. over more industry. customers' about Great this manner? large deal of and engage Joe. you hear guys, doing I that the little Hi, you touch just behind that edge what dynamics a signed share getting to world is everyone to Hi, to real-time a to provide social the traditional be that pretty looking a hear sort may end you not well. in Hi, great Justyn. they but channel in was -- of pushed in customers some in like they're urgency light bit can and I'd travel sort sounded about which the anecdotes anecdotally their Maybe to guess particularly a hear Ryan. of love how from Can in their them some in

Ryan Barretto

are organizations, it Tom, Justyn the travel. ever, area these going absolutely this of to their to then restaurant. Yes. We've That in be and a happy not lot seen seen that alluded of channels, great engaging is non-investing as social. this in. this are a We've specifically more is still need in to to We've in A jump because right? they in and and they're digital into seen in think customer it spending, the base lean would which If Ryan, have thriving example, than well. market, and in other out you ensure get on this they side script now previously hospitality. communities their in it are

is customers like There, the perfect marketing as credits really while can't so, have understand just on a customer an business -- this these well, to to from base. important, necessarily front customers it's ability or have the many and now even imagine, alluded travel mind a consumer's be with Justyn them a closer look of brands supporting that, touch generally perspective, as any and that needing them in in to their brand influx stay the traveling things and reaching now, then stay perspective you out what will customer to that from might organization to is critical. just to that future. center talk And and right in top as rebooking customers within the and future, keep to of care to, about how like right where customers example is And their a

same So of and the them. that get seen that the travel, we've pilot certainly, that it as and in have other dynamics market well behind some ones

Tom Roderick

really that's Outstanding, helpful.

you work-from-home base were any moving like for Don't to one handle employee with. is you, already might let adept model it were of want your curve in it. think I'll but historically Justyn, certainly you of it, environment, you sounded ahead and be the take but to this kind I something the low-touch of

world But So when your can share I that happen? into in soon you how guess you trying us back now the virtually how in low-touch question are some any is things turning the as employees sort your -- hey, manner that we're model working there employees there well? to which are get is turning a starting to that seem the bit sales given quite and say, think pretty about of on see to back a get mark, urgency the like comfortable And with back about of up they right? you office, with you'd and thoughts little

Justyn Howard

speak to to happy that. Yes,

around imagine, I return of lot what going a think as looks there's like. can conversation, on normalcy you to

that's there high across to pressure, it's for productivity and thoughtful have when available higher different conditions remotely, It's sure work so, were but things of we most to sense want and be. to safe in everyone, when situation think expect you offices make are us pretty And those lot key it be a can in living our our seeing our it's looks who of because remote, it's to us that care, would make some to and a to that late of be safety certainly we something trying we're of do relative so that we adopters the the due we're I adopter that it's child We that, and than what be you sales a I whatever in struggling from return have would proud to point, possible customer been, feasible home all we're us our or the either the of. going these, your expect outstanding the that families organizations. when really early the for terms want balance support, going about organization organization that say being like, quickly gives in cycle, to the to our might back. cases to really to an to needed, work it's us, and our been versus between the moved and to as productivity the don't we deployments even sure team ever or of been making is success, productivity flexibility and not something health where we need or

thoughtful. think So that hurry, said, We're team to prioritizing that be we in to -- making as we're you not really families we're what we're about the like. be as going going a and sure the looks and

Tom Roderick

again time and Outstanding, person, congratulations done Take care. on see some everything in forward thank you, looking far, from getting to soon.

Justyn Howard

Thank you.


you. Thank

Our Bhatia from next William Blair. Arjun comes from question go Please ahead.

Arjun Bhatia

for are Hey, my taking question, hope you guys, and all doing thanks well.

probably I data First one of we on based Ryan. coming talked and the the is about go-to-market you how in in. flexibility for know kind adapt notion can the that's

expansions this focusing on or hear be pivoting that you bit on is to era trend maybe on and focus it's a pandemic transactions those larger know bit now? Could dynamics -- to us I curious the a you're the changing, high-volume more Sprout hit, how in Would of in through little just Before of kind little was more kind walk just accelerating now. more customers. here whether coronavirus Social

Ryan Barretto

areas It's bit we from script, see seen within our from in might expansion the those continue the in focus. Justyn we've what and customers of From base. areas and to be of cover NDRR. this areas customer didn't the of expect with expansion Arjun, you face the both things. and aligned standpoint, level Yes, to an that compression would and little for growth of enterprise healthy and our a strength been same discussed segment jump happy in us Both other

that So, to success value of are a ton certainly, continues tied that analytics listening strong a for products motion and today. of be like the to us one; to adding customers

the pretty highlighted and certainly, of there, grow the implementations within social interface deliver challenging the expansion this seeing to difficulties and a side, at the that for feeling ever, our user on channel. due on the on some challenges side, the is big strongly opportunity past in when long share, opportunities becoming than a to they of need challenge for enterprise within to more that, important able acceleration be deployments, top time, deployments, the very expensive market adoption to companies, and is So, enterprise with lot

using we these that are, they're themselves customers getting publishing to proving And through analytics so, start platform and we're customers. the with our works. the in able leading engaging They're to and that with in They're enterprise platform, Sprout. their those trials

the change, ability trial. when running to of good quickly, we've the of a need enterprise which these going ended especially QX and a up into that really we as get so with removes making they the portion to And seen within we access them really of from Sprout, progress accounts team a Sprout lot and nice burden you've QX have where and implemented

Justyn Howard

This is something Yes. quickly Justyn. there. I'll add

couple of things. just don't I'll if Sorry, a add you mind,

able those the the but success than up also need, we've what for I we've in the market, you around customer but think business that kind internally, think think extent, mentioned. realign catalyst of to that we we're resources internally one they the growth act able that in our resources on we're to where I the both that the around align on the in our areas heightened signals struggling perspective point And been that is the we're in team make that's opportunity demand. to an others is most and to align thinking to that the where mid-market of the or space a how not a also a has seeing acted to realign sure around may folks act even certainly resources seen being enterprise able we and from the and as pick the about what that may we're accelerator team but able true agility other team, where and from they benefits the more have to of model match only the be side resources and have help on new the we're and side may that seeing that

reporting we're like all all still data segments -- across to shift when ability I need success it's hey, to where to us, that's our markets. important demand that, people happens, think where to react been use this think or our us. and to our seeing whether our to be all really incredibly is, it's the valuable incredibly time, say, this is for support really, of but them are They're I the we a because

Arjun Bhatia

uncertainty you deploying this that's can, of demand listening than maybe specifically, customers Are despite I you on involved an that saying, these if sounded I a listening, when about generally to deals in little And as the and -- seeing -- the a know pipeline, bit maybe have sale. it's taken is mentioned deploying on environment current expect quick progressing want there the or Perfect. follow-up, they're Ryan, more product, kind still core those kind are longer they the like would think a in about talk that environment? I put pause the if pause of But usually macro the now the or future of you it deals strong. I

Ryan Barretto

have space, the those enterprise. compared seeing that listening acceleration of on question, those that acquiring as in that products more the those see it see listening, not agency with platform. in the be within They leading SMB not still as prop we're unified I showed opportunities, pipeline, to within the platform. mid-market essentials. for seed-and-grow certainly but those They're keep challenge bare be good parcel and Arjun, had In the harder looking may our rest close reason to deals. are with the the the those market that good today. to the solution Yes. as need, the deals and the part with environment where they may market in enterprise mid-market up as are and familiar core they main entire certainly they of that Majority good value and we're

Arjun Bhatia

thanks congrats good Great, my question, and taking a on for quarter.

Ryan Barretto

Thanks, Arjun.


Thank you.

next comes go David Our from Hynes Please ahead. from question Canaccord.

David Hynes

guys. Thanks, Hey.

hear this, be for early I'd I'm too like because try one Ryan, but it anyway to to may to your ask So, going thinking.

recovery of X at the XX past April I end of guess, sales the which, days we're cycle. kind typical a rig, So low puts you

signed I in is terms and never phone seeing So I'm demo thesis for trials, on this the conversion trial. demos on a been or a easier to out right? up get prospect think probably that or there of there's curious what a you're

So data I'm could points activity all are rates -- of snapback just curious there the you've give you confidence that seen that any normal? look what conversion on kind that actually like

Ryan Barretto

there. happy David; Thanks, jump Yes. in to

we've what to to the go that engagement you activity way still with success and point engagement closing that We're at than we customers will the demos in a taking way good of very are of comparing as but of good what having within I to seeing customers I using number are these in COVID, and that market of amount We're deals but our every to how premium in deals been more the is It's point, know we're conversion so the those we basis We're on tell to the in it per getting to and from in from seeing just with they're when get like we have that amount get the we the done progress the certainly our there trough the add-ons. look progress just the picture segment before even did terms rate this so the revenue and of baselines, just across same good the teams think weeks well. the few progress platform. have full seeing good deals they're board things we the just good paying call of done but close are like trial. a the along more seeing really the in today. that getting daily subscriber, attention number subscriptions

David Hynes


no answer you've we're business? since it That's assume a line Justyn relatively to I early time into and for is maybe know I for what color. but profitability that the changes then in you're one on of seeing Okay. the terms hard this, anything said, this answer Joe, based one helpful or was to still to your thinking

Justyn Howard

perspective the you From Joe, from counterbalancing business, in, happening chime Yes. are things as is performance my there's that in both our well can please see my the but -- perspective as some projections. as and that

I profitability at of not we're about impact differently point. that think this net is the timeline that thinking

David Hynes

that's okay. Yes, good, Very much. Thanks guys. very helpful,

Justyn Howard

Thank you.


Markets. Thank Instructions] ahead. comes Our next KeyBanc you. go [Operator question from from Kurtz Please Alex Capital

Alex Kurtz

Yes, thanks, and and safe at good that to Sprout. healthy everyone's hear

question of the linearity -- then for may demand the had team, a mentioned trend clarification of of G&A you kind of G&A. think should Just just for the rest Joe, kind I where in a more

as could kind for guys week broader to appreciate just two outlined demand question, then of it. a go like So, a that talk you're blog that, then you're you if challenges ago seeing I'd or back the had strike where and maybe seeing some you that And trends reference also by versus vertical. And a larger of using point, and maybe upside where some accounts. SMB that across kind about like post

those questions here. the X So core are

Joe Del Preto

first, take I'll G&A Yes. the question Alex.

-- you on fall to the range the in for to can On into training you it revenue for of quarter of spike it that quarter, at was in 'XX the didn't increase public back but of I of go-forward QX our out, of annual One couple a down we expenses in quarter, the if low basis. look kind is saw expect was you our kind the company mid-XX% the a way look the G&A and was then first have our side reasons. it

Justyn Howard

it, a that. the maybe second question half clarifying Got on and quick of

around Is sounds we're seeing kind as as well, seeing It not the looking cetera. we're blog just we're kind et segment post of you're that just for versus mentioned both of question? of a from like well folks basis, seeing. where and what doing well of You what as the are kind commentary vertical that a

Alex Kurtz

exactly. Yes,

about, underperforming. we who's you're little bit and just changes in more guidance and when thinking how yes, So look at just outperforming a the and the context

Justyn Howard

going I'm the spot put Cool. to Ryan on then. back

Ryan Barretto

to answer happy Yes, that, Alex.

have demand, really all education, strong. of all government, We've tax, vertical the organizations, acceleration those in terms success seen deals. from been on side a on seen In gaming, higher inbound like places good good really of and we've demand continued where lot

those In terms of compression market, certainly or agency and have agency, the of are that the mostly in of probably felt. impacts the areas good where parts being the then market, small mostly seen the in in of pressure, in a portion SMB side

growth, case. the traditionally the of mid-market continued that's and had are In kind terms All lead pace and enterprise, and of to be opportunity growing, continue from the we strength but to enterprise the us. mid-market good for

Alex Kurtz

Okay, thank you.


questions you. Thank I queue. to show over the the to call no turn this further I'd Mr. At in like time,

closing for Co-Founder, and CEO remarks. Howard, Justyn

Justyn Howard

thanks. Great,


our William So time us. thank virtually. time look Virtual the their Cross and In of be want for work you Stifel Conferences well helping spending all Sector customers the to, investors some in months. and forward spending Growth early for as to just I close terrific with as with you thank to time our We opportunities, our in partners and look we June Insight be and spending with have Blair employees, other attending that quarter. time coming with more forward hard all We'll for We'll support you. the closing, some again, and the

team, hard and the to situation facing on the team are want part the that keep health adapt work helping importantly, also we well And quickly frontline and for everything on sure grateful running. the More thank entire to care and customers who we're to everyone's supported. we're that of together and behalf are agility all our workers making

forward today. We'll soon. to time So thanks I look talking again. you to appreciate your


conference gentlemen, Ladies today's call. concludes participating. and this Thank you for

now You disconnect. may