SPT Sprout Social

Jason Rechel Head of Investor Relations
Justyn Howard Chief Executive Officer
Ryan Barretto President
Joe Preto Chief Financial Officer
Raimo Lenschow Barclays
Rob Oliver Baird
Mike McMahon KeyBanc
Matt VanVliet BTIG
Tom Roderick Stifel
Chris Merwin Goldman Sachs
Arjun Bhatia William Blair
Stan Zlotsky Morgan Stanley
David Hynes Canaccord
Scott Berg Needham & Company
Brett Knoblauch Berenberg Capital Markets
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Sprout Social's Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, to Mr. Jason Rechel, Head of Investor Relations. Thank you. ahead. go Please

Jason Rechel

and earnings operator Sprout fourth Social's Thank welcome XXXX call. quarter you, to

be Private announced have We release the me can discussing will results website. our the update presentation With closed be contain Act safe an found issued Sprout Joe are made which XXXX. CFO, Howard; President, harbor in Justyn statements, market today released of Preto; and and Reform Social's also Ryan to forward-looking the Securities Barretto. CEO, Del are Today's of investor provisions which after the call press our Litigation will pursuant

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

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

with report and well ended annual as filed XX-Q Exchange and risks XXXX other the December filed be on with affect to Form our to the year XXst, December on Form XX-K our fiscal of ended important results, annual Commission, XXXX with XX-K for as the SEC. our discussion please a and factors that report could quarterly fiscal filings report XXst, our Form other the year actual on For our refer for the Securities the SEC

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

Justyn Howard

Jason, Thank for you afternoon, and you, Thank joining good everyone. us.

into we because employees, and company. our customers. people partners of to We're and many express public to want I as contributed new gratitude success. second a roll my the As amazing our position share fortunate our to in year today results a our that have our to a

to will which discuss first priorities millions our over emphatic trends I quarter that to level XXXX. the an Our delivered build then close in fantastic we the Social into past fourth a and briefly XXXX digital in on our touch our teams strategy and of deliver for market as stage around XXXX businesses business for the expect takes center results globe. have occurred to want high year,

accelerating Our strategy and we confidence across investments growth give future. results are our in and in strong our the making us board the

I've been more been and mission momentum has never position never competitive and Social stronger. our critical

meaningful drove new take record greater ACV customers growth hold. saw in delivered retention and ARR net our acceleration number added as record than in and improvements we of QX, a XX,XXX strategies market product customer up During and growth

versus added than commitment by on points our to margins to ARR year doubling with X,XXX leverage, nearly operating growth the business a our while our delivered also expanding more year-over-year, QX ago. We basis in

social year the clear made XXXX will over in that business. a media it back the cornerstone evolution full of Looking next be

a new adoption cases on organizations is roles customers platform it's rapidly as This graduate increasingly the and getting world evolve with globe what of it, and as as action they and stickier, serve footprint how barriers XXXXs the strategies how businesses larger deliver has to bigger to our day, brands makes is marketing, every into compete, possible being the and they better reach, more has levels becoming use that of Meanwhile, they class sell intelligence. how a way for, as customers getting investment. is driving Social social social structurally relationships simply platform it's and bigger entry helping emerged a it rising. are this pulled and a potential across build across brand business to sophisticated beyond who We're more they record with Social system diverse customers. and market not our It's a dramatically It's engage, make, of also second the way companies across of experiences. order changed the strategy. they for make brands brand. taking Sprout and our

distribution has Our several years companies more we serve. the emphasis Further XXXX. stakeholders over perfectly uniquely as involved Greenfield and evolved, well experience us adoption, expansion both this and buy, evaluate, integrate on user pitches, the past across positions this technology, camp be and for prove as should become slowly and We're demos value social on world expect evolution in as class way then new more to software for playbook of positioned Prospects rapidly to selling decks in easy more use, immediately easy of themselves. much implement businesses demand with the to or familiar. sales slide buying match to the and fading. model software tools buy to for We is culture traditional buying to the Buyers approach will believe based right and software.

strength product an of already have the shift aligned and compelling to go-to-market advantage expectations For an create buyer of product strategy Social, growing with win market. to expanded The our XX growing has buyer we've combined been in and outsize our advantage. and years and leading our the the role importance

to we're into driving their the organizations. the fully customers XXXX, entirety help our power Looking innovation transform in investments media into to of social lean of

public ranked to QX We're Place of also publishing, year list rated work social listening, for shape our social for reputation in also We the industry top experiences of customer recently XX capabilities the Women. investing during We continues Workplace way next. work commerce, power made our nearly Work for service. of a again cloud Top next capabilities build our including had commitment and once number by companies engagement, earned for invest product two to by best what's generation were delivered best satisfaction every recognition product to our such our work. Top in team as integrations our by rated We advocacy, software core highest of be new highest Great Workplace Venture's continue to for an platform product, categories, honor. care, Sprout equity the inclusion. culture COVID all and to partner in standout is fourth which to that recognized marketers, best Glassdoor one and recognized analytics. is in and period places platform Parents and in the for XXXX, product new in for diversity, from Sprout material with the customer and recognized different as to improvements awards were best a we a aspect top eight We where and on transformed of to Fortune enterprise XXXX, messaging eight Battery

is and values. world our critical our team We're to key our proud changing to experiences They're quickly Our a are proven to and commitments our class backdrop in to able our both strategy, the our also of rapidly XXXX. and customers with adapt that workplace market advantage deliver be customers. just especially of to of team to was and customer everything happening a part recognition aren't our as

number on have opportunity. ACVs market businesses than use a alone expanding We've that we than shortly up yields marketing to existing the in Facebook, sales discuss than doubled processes. in will Joe of in $XX in greater million well properties will XX%, improving A are foundations growth And to expanding nearly we've market billion international and according our for culture, emerged. TAM. relationships, opportunity you current numbers our year told products, Ryan this contribution our publishing of a customer The greater the expanding continue and million. invest more and and aggressively $XX to us our position Facebook cases add-on $XX billion and and As XXXX, customer after distribution business, across expanded $XXX experience new opportunity from built product, new we is investing driving have previously an

Our is growing proposition opportunity our is We our rapidly disproportionately. TAM expanding, analyst the and need to you to value address is with in formal social year. event update granularity plan rising on later this our specific more

to want acknowledge the to I promotion recent Ryan's Before I President. also call turn over,

you've As remarkable a yourselves, is Ryan leader and for person. all seen

expand to years forward sales success working the formally lifecycle. Ryan's four made as in the past in plus our the us. culture we've to contributions success new Congratulations, and the Ryan's to our we our we For impact functions people, front him an the outsized even align has marketing opportunities and continued our and business. with fluid organizations the these In looking customers, of role, seen throughout customer more Ryan tackle across Ryan. relationship closely I'm on

you. to over Now

Ryan Barretto

of the proud performance of our light fourth Justyn size and incredibly for quarter on you, our thanks opportunity. sheer Thank I'm and guidance trust, ongoing team's the which support. a shines

important right, to And is like just up. we're than we ever feel is more more Social Justyn businesses before. warming

trials, it customers, social. buyer in seeing our excited recent by this data three buyers organizations differentiators a and buyers demos, marketing operationalize more sharing to to competitive a about goal sales, user what integrated to and from when inbound is reviews. perfect even self of start business closely now a of best According are insight and is why we're with motion. that align a XX% our has I'm marketing evolving. points TrustRadius way to into the entire which in bXb TrustRadius the interesting our influenced been is closely SaaS. by top service becoming the and things begin are and is pronounced, technology found some more partner engines like time want product for today from Gilpin looks Our efforts report go-to-market are tightly Jamie behavior what I'll building free CMO, more provide fully and to that option. talented trust one team success My

our improve they say now and over the digital new past the them Sprout's As, modern engage basis live. lead compiled adapted get forward Covid, around alerted mission to likely than the well racial this in a that we've and in a our to team record with central pace the giving industry Shifting more metrics, of to on in the product among listening this fastest the we the have face-to-face commitment markets and with of the harness experience. our X,XXX customers' for system analytics than preferences by a It These are media, X,XXX XX-month. And business Leveraging to their in a which greater And to and self continued category. market. They XXX% matches points and fit Investor other in with physical efficacy trial. built XXXX. departments, according new because According on and platform Reddit well. the aware to sizes were of PR, year-over-year a center recently comms, our C-suite segments experience and to we've than to Premium quarters their serve social to that technology to performance is make mission which need to and impressive the for on at where And including prefer they well, Brands shifted over keyboard, significant our quarter is products can study exist especially quarter critical well a of these year shift hands sellers before the permanently engagement not interaction. social of power user's trillions reality, the today. this customer ARR McKinsey, net literally a and all Relations buy. use where with the deliver us. motion Social quarterly to record seen data It's of how see other strong, unlock sequentially remote making grew election. lead And we the gravity move of now a but and Coming user best likely Social moving synchronize the are to sales To presidential it they fundamental we growth. premium buyers customers conversations conversations engagement to exactly on another understand intimately stores, very in. a human is had empowering media brands ecommerce to to Sprout want that insights buyer was from only software management of business. channels sustain was were data is We all feedback can social analytics three customers. injustice of reviews JX, with social. remote a networks We've all seamless across them. that's McKinsey, Sprout, product to and every a out at companies aggregate XXXX. our more to social and how as quote points all

great enterprise communications, all Bauer, to selected customer example with a actively contact to to sample that gyms, service this we their By address brand, pure collaboration global and is overall is Group, Eddie customer acute Hotel come measure Wipro, provide Duty improving, in effectively the RingCentral brands Pedro RingCentral, they can quarter structurally solutions. better listening social. market. of to and is of the includes insights channels, able and our Our retention the Radisson customers Sprout monitor provider and continue customers performance health across social A brand center brand customer and their solutions, Ole cloud of need now Sprout support. and sprout grew more urgent leading A University, new gather that to Miss Udemy. with Through social utilizing

for times. an with an customer smart also Titchener minutes sprout. that library XX We XX and gotten year from two marketing XX investment response to to on changed despite find Claire and with that We the return Brand a times teams. response to the intuitive and for to fast, value we've with we Manager go minutes and began Protection XX said higher Panera made realized gave tool efficiency than even the minutes In working Social of Care social with less on in XXXX asset service average, thrilled target volumes. partnership Sprout we've customer inbox in with decision this months, Media so our we've effort minutes much We're tangible from our Bread,

experience. of media when set also We service to for WWE as Robin and campaigns, we relationship not platform formerly our of or is Manager ease by a manage but to efforts marketing up, has friendly allows us Social began enable use been of a social Macey, has continue our seamless partner use in it's USA, two her robust a our Wrapping of collaboration compromise listening to social everything do dream. and the shared at on seriously Sprout. Weight consistently Sprout inspired our the known user one Senior us unified most effectively Media qualities Whether new choosing with to feature be monitor environment. self need Sprout's brand people performance Sprout Watchers. a to important I pulse, social

the Our bar success XXXX. raised even has for an better

team care and of our business innovative elite an us employer enabled build model combination. take brand, and to culture, are customers. strong technology This Our a to unique disruptive great

appreciate always, support. turn Joe? And With the I'll excited to what are as financials. ahead. We through your Joe to we it lies that, over run by

Joe Preto

year Thanks, growth. and President fourth I'll in was full Barretto. million to quarter year-over-year the before quarter results year representing walk our fourth And for revenue quarter XXXX. the XXXX moving Total XX% through for you $XX.X on first detail guidance full and

up was XX% year-over-year. measured from revenue the organic simply Excluding impact legacy

We in revenue XX% For Organic $XXX.X ARR Revenue was up up record the with with entirety year fantastic up in This new the customers was up strong customers, in year-over-year. We was full ACV. held QX across and our again achieved Total net ended result year-over-year. the XX% year-over-year. year-over-year, of year finish acceleration XX% X,XXX $XXX.X of had XX,XXX net million, reflection all net $XXX.X across ARR was to XX% a new business XXXX, is organic add our of performance up total million, million, QX ARR very XX%. segments.

QX tax customer digit than year the The of long the of from businesses harness on customers contribute a quality The data. may $XX,XXX reach power a number up rising on reminder, term as we focus analytics economics. a listening ago up both As in customer and rates unit focus premium across from ARR with social base X,XXX in quarterly XXXX. are double X,XXX, high more and growth of XX%

operationalizing are We the our a are across of into because leaning customers business. their social full platform entirety

expect We that and expansion, years economics double to for this ACV stronger will come. drive even unit many

are two quarters our statement, remainder is count this getting customers This a our enterprise growth, mid mix basis. Our also please after customers operating even in customer unless note of the bigger. resulted references large to of in results all income our otherwise In market non-GAAP expenses, to row, and acceleration Within are discussing ACV in share XX% the accelerating overall growth. and that growing. stated on

our compared GAAP Our year hiring marketing just $XX.X In ago, XXX QX, was call. press reconciled points our QX a XX% revenue was XX.X% of last to quarter. million of pace gross teams. compared earnings is were accelerate or and XX.X%. in a We're up of gross to ago. an continuing this expenses and results with the basis both gross year This margin our Sales $XX.X release that sales for of marketing to below across or profit issued margin down from million before XX.X% XX%

for demand. a million So from we $X.X have ago. meet to or very were Research down the and XX% capacity right XX% strong expenses revenue Development QX inbound of year

in R&D aggressive goals growth XXXX. We have

a year Total set multi As million use to from expanding ago. revenue XX% cases. year XX% $X.X expenses plans for we of for a were or pull investment QX be product administrative down engineering of

operating million margin as X% as for operating continue for expect $X.X a operating negative operations. We we of a XX% of revenue negative is outperformed the key compared year XXXX. expectations QX that loss many scale to our start to to in Non-GAAP revenue We had dates our the decrease timing the higher margin of January to general percentage meaningfully and was ago. expenses hires administrative

For was to margin compared GAAP negative or $XX.X an XXXX. XXXX, in the operating loss year operating our margin million non XX% negative full of operating XX%

a pleased share of basis $X.X was XX.X million ago. margin. a average are point annual of net $X.X Non-GAAP loss and with net year of for for million weighted stock improvement per We shares outstanding compared on QX net to XXX loss based operating loss a million common $X.X

flow million in balance ended from Turning equivalents was cash down statement, $XXX.X Deferred cash, and marketable at $XX.X the QX million. the million to QX sheet end at with $XXX.X XXXX. the we revenue quarter cash end of and securities, of the

and QX contracts RPO performance approximate both XXXX, in year-over-year. billed or are XX% up total $XX.X unbilled million $XX.X million, Looking as our obligations remaining from approximately up

$X.XX year negative flow We free total in $X.X RPO million year cash a cash and $X.X million Free to negative next for QX a in negative or expect approximately months. million $XX.X recognize of as over to compared negative $X.X a million was was cash negative revenue ago. XX% cash Operating the ago. QX XX% XX flow to margin flow X% margin million free compared negative flow

As a XXXX build $X.X office. Seattle our approximately time expenses included flow cash reminder, free our a to one QX out million

free flow $XX year margin full For negative XXXX. compared million XXXX, was flow flow or in free margin the cash cash negative negative XX% free cash XX%

based our model, overall dollar on rate in has impact XXXX. flow. free year was retention leverage XXX% a In shift contracts XXXX, net with addition multi annual ongoing in positive our our financial In consistent to to XXX% cash

XXXX. Our XXX% was XXX% XXXX, rate SMB dollar in compared based with in net customers excluding retention

bechard activity agency COVID-XX segments. business talked in were within elevated and saw previously, and slower our expansion impact This relatively QX. our we've primarily was in market headwinds about we mid isolated As as initially in they

levels. net factors of We in retention. multi In XXX% rates second with each platform were expansion, C rates the XXX%. positively impact of our net However, each and NDR accelerating reverse half retention in dollar dollar year We based acceleration from these our current premium attach mix expansion in trajectory based our that XXXX. of believe very XXXX, ex increasing pleased exceeded current stickiness, drive will the and exceeded QX rising changing SMB retention net our modules of overall segment

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

organic organic a beyond growth as percentage expect rate digit first quarter the the rates. ago. We revenue growth last difference rate expect difference we we our in growth be the This do We from discuss let to low quarter. which will experienced points reported our and single than reported to inorganic not year material faster be our in

the year-over-year. This more million. set XX.X%, an loss range of margin investments basis We expanding million negative an expect operating address an to making represents of of $X.X X,XXX aggressive points improvement non-GAAP anticipated in than operating opportunities. $X.X of R&D to We're

rest accelerate We to scale. pace hire delivering We're as company. are our operating are margins highlighting our the most depth efficiencies across we improvement continuing go-to-market the functions of company build to and continuing of our the while the of in across this doing across

share between assuming stock of net We average non-GAAP shares per basic loss XX.X approximately weighted million $X.XX and common expect outstanding. $X.XX,

For expected the rate we XXXX, revenue to million. of million in overall of growth expect total range XX%. an $XXX reported $XXX This the is fiscal full

$XX roughly margin operating basis multi range operating growth million. leverage. This $ margin year-over-year. non-GAAP delivering operating year XX XXX remained million implies in of XXXX, non-GAAP loss We of For to compelling improvement we points the durable, XX.X% profitability focused on a and of expect negative with

of return many note assuming common and digital XXXX planning we $X.XX share stock employees million We for shares per throughout non-GAAP year, opportunity to of QX have expect may year assumed for the believe multi between to offices center are net as XX.X summary, weighted a loss and sometime Of approximately our XXXX. mid uniquely positioned basic $X.XX, purposes, outstanding. In we compared we occur durable during capitalize the of to their moves Social expenses annual summer and events travel corporate will the growth with strategy. on

Ryan confidence to questions. we take make achieve that strengthened I to and full us will give are Our and to enable of cash believe that With optimized flow Operator? any trajectory happy potential. compelling leverage Justyn, your our investments us financial free


Your Instructions] from the [Operator Raimo of Lenschow first from question Barclays. line comes


ex Hey, you over thanks the in to we question. that gave saw QX out Justyn And forward in on -- the SMB talk that? going of to to the about see a year. for out, a can do dollar congrats forwards? part, like bit policy retention follow-up, going Q of you what net if And wanted the you finish drivers what go I the XXX% this back a please. my great are -- or taking changing how little you Then I have about numbers


Raimo, Yes. to I'll This Hey, have how add And is are may that. with you? Joe here. Justyn, some start

be SMB contain And impacted bucket So ex timeframe, as The well. us, during QX generally we were things primarily see did with that speaking, that during may some SMB on to disproportionately QX, we in QX maybe some of the looking which customer probably timeframe, pause the and existing segment and of our about. base put agency grow the talked slower and temporarily. expansion maybe a part agency some does it

primarily just would to of is those remainder back that just but year, of trend that impact frankly we build expect half we through what QX So we saw over from last for that that the which and where that the levels the improved performance generally of the year, came saw. upward normally


year vaccinations, do terms prospects, et terms cetera all the it, in about of Or like levels look with what prospecting, this time kind evolving do we like, think cetera Okay. like half? Thank Perfect. engagement of first you more like see you up, out? of do decent how like, see early stronger like you world with you about in out like playing this of just And think signals then how you. et follow is in as terms year one as second it


going Yes, for evolve. trajectory quickly can that here feel Thanks the through engagement seeing, We've vaccines, business remote interaction highlighting this stay. remote of is question. business XXXX, with data our We we're And to the for about really Raimo. the up set really This even be engagement, proven the hey, and Ryan. is right that that all digital now. is good this we're to

the up having think go-to-market and up drive on but success set a customers our we adoption a about go not get has to running them able fashion that when so being in forward. us motion, in remote And really team fashion, and our remote only implement well has

when well feel we positioned like through keep rest XXXX. we're executing the of look the been we've year, at we So the to that executing way


Your a line of comes next question from Baird. Oliver from Rob


guys. Great. the Thank questions. much for very taking Good evening, you

Justyn, one you. for

comment cases the different made bit prepared just that. pulled into about while. it You little to I Definitely for being a in a your software. to it's using remarks And are use departments guys your within But you a that new enterprise. know interesting profound that always more encounter like sounds be might

could then quick out And you up. that I if had was flush a I So follow comment. maybe just wondering


Hey, Yes, sure. it. Happy do Rob. to

that like retention new think social to et had we're feedback What I what is in product of now than acutely We're more something is as more reached anything, I that use maturity. specifically more over some think seeing We're more customer seeing adoption there's what last volume relations that. just service previously cases see at progressive been quarters. across have that investor customers couple certainly to So, more -- their come comp starting has strategies, right and starting customer loops, things seeing they've and into of businesses the of use really and customers been where up operationalize well, we're cases, are is cetera. new looking level

going side. on likely the I that that throughout to would So material commerce is be think I the one is more XXXX flag

seen The thinking are the past, of in something ago. in more other in lot but often the prior the or we organization to a holistically is that just that a deals in and than we're our more quarters it's use about small were years cases more hear that across starting we've lot Social be batches they


for for includes But mentioned this just products Ryan pull or sounds now, this don't But those all be you general are talk okay, investments right might and that adjust, sense. demand some remember operating you are Joe, premium And guys. I year-over-year a Can that. year you're thinking us as on really Thanks you good scurrying some Joe. you clearly maybe customers Justyn listening, for there? the you know I in Great, your maybe for add budget helpful. but and little stuff. backdrop exact remarks those XXX% color know to were extent really what or really I your this gave so the you say to prepared words, as get what to Ryan take customers seeing of that if for your a can't I'll in one's mean, that's I that it investments a like color growth, for Thanks about you bit what can guys with or


the Rob. Yes, for question, thanks

from our for see the continuing market of of is outsized doing and been across to continue investments; we could to opportunity, opportunity really all of areas across continued fruitful then you will be side incredibly in terms with a the a investment of thing top the market segments, the a And year, one, to funnel really be us we've great And into the probably of been perspective, SEM the space. job, to invest up enterprise continue that's marketing ones both has where going areas we feel from team lot invest SEO team we all see on and mid segments. momentum a us. this there proven some we'll our to potential for a healthy a there, last see lot fantastic has In different the see year few that

terms really in it stuff seeing expansion of In products that product lands. our but great net new for has been retention, you're the customers, delivering team of some also the dollar our the

And continue down the and you'll on so see premium us foot rates attach putting to our products. those


line question next Kurtz comes from Alex KeyBanc. the Your of from


on for Hi, congrats the this and quarter. and is Michael Alex

add-on the you products? making and acquiring changes also extending So compensation as you to head into on XXXX, around spend customer salesforce verse any the selling are customers, the then more


changes the same any we to Ryan; way we this compensate. model. is that always Hey, making not We've Mike, had are the

dedicated the on to customer that's sales side, note then is and teams have thing side. on probably one here business important So new both we the

it's so working customers. those teams specialized that in the are same with And

it our an from look in from standpoint. approach did expense similar will to So XXXX just very to XXXX what


Okay, second sorry great. the then -- -- And


sorry of that. that to compensation mix of about I Ryan's around point, the rates. part question of in spirit to we've some the just date. of going a was To the think seeing attach we're baked just lot shift model the No, add, that was I into the

through, we that the we're part think that carrying see in we're alignment. opportunity we of is But seeing certainly that much and traction same So XXXX. the


Your a VanVliet comes from next line BTIG. from of Matt question


the Great a job thinking differently. about guys. on of expanding and little just those quarter maybe questions couple hi, Yes, on last

more sell. contributing modules your already more additional there modules about the premium retention recovered in talked break of existing upsell customers go as fourth a as an on maybe of You you based sell? think kind terms with about Can versus into plus, that you revenue how What's and XXX say down it bit of really the quarter and little and us dollar using up through there think was XXXX. help proliferating heading market will selling cross are about that some you


add Yes, there. this is Justyn. color I'll some

where the seeing we've being social. definitely are those for We products of as across growing clip. involved that of other premium in the are well additional becoming on at that departments we of seats about the additional a as healthy use got the there additional cases engagements when expansion core but So more ACVs see expansion products. plot are platform are some we a the talked customer of the Both those catchments both for needs those organization, just needs not very

of also additional further additional do organization. with queries have a data, are have, and those mechanics them, add-ons involved where leverage are the terms adopted We as that things investment in that. that There there the bit of greater even spent in like premium to some add-ons across is

But growing So core just seeing play its the well. we've data add-on we're of use we couple without to love different that very the is as got pricing nicely sort a there. principles platform intended of in

us. has been in tailwind those of for combination great really a both So


a at of of good step in kind tremendous function investment investments local of then like you look can level Right, you think efficiency driver a far specific people? kind where we I to as the plan making seeing really of longer-term a hiring you into very opening about is helpful. really That getting you do terms are of this growth local, local at feel your been it's long you or offices international And of pie versus where some markets, markets and start are bigger Where guess in how that? chunk so there. should your year. getting


very are think next first that just I back is there. a accent, office group. us market here. Thanks, being Yes, going zone few for in getting a marketing we're invest have headcount number seen would channel international opportunities, and the EMEA progress just are within the years, in see localization From right we locations, year, to very big right good us efforts our beyond in This in there, that language, really the the I LATAM, locally been the in more over also our then with going We more Matt. the APAC time increasing internationally. in This and opened for people and productivity still getting exploring opportunities XXXX those international EMEA be standpoint, also right of early continuing into say Dublin, next it's expanding Ryan. helpful innings opportunity be on to years, we to has we and up

a lever right do future of now. early it we're we see the as in states But think big I company. So the


of a Tom next Your comes Roderick line from Stifel. from question


my New everyone. questions. for Hey, Great. Thanks taking Year. Happy

at analytics love is product of on Justyn the ready learning being machine that little of data of but to is about product that. product the by how here a on I'd product me ingestion, just I all bit integrated framework guess how a you it a front, to from reputation open would And let But question first. about to the And little then of more that love sort we'd be data? bit how be customers. able embraced throw question is the more question bit reputation a ended the advantage an to hear portfolio? hear unstructured rest with So take


happy you to mentioned in that the had to and Yes, speak context of is correct? reputation,




Yes. Okay, cool.

part those of different So other the kind of in integrate variation, the There's some we of the data first to are frameworks. a commonalities and a with. that there. unstructured, common is so it's platforms data against social we built little is that than platform of question, built some structures way There the a while not of ton the And right?

quick point, side So at to sources we've done add pretty this data effort actually there. to for get legwork the us is ingest on new a like

Now, we those not do, we or it's just ones that want capabilities on. deciding the may turn to about getting have those we where relationships which

and with to adding mentioned, also big are it's that, opportunities the on see for those quick ability looking across the add process. reputation And us the that that things additional for So have investments pretty side. primarily I that larger you think better into sources do built segment like identify deeper particularly to The you'll additional data analytics, will organizations. platforms improvement in on a ready like tools that from the are but that do

you're going to of still be of we very a ton grow. tons advances, reputation room that to consider product the to of within see a So our team much VXwith or kind product make


love X,XXX I Thanks relative again, guess had been bit feedback. direct historically the this tremendous for deserved. There's one at a a customers just follow quarter. here. I'll I I'd up about President last your doing. great X,XXX Barretto. number to And new greatly the hear question view of promotion And you've you that's Ryan, congratulations more this little my on to that. sort Yes, what upgrade look, path. mean, quarter, almost on

And need a bit in spin But to so, clip. upgrade you're could the faster your with path. like that successfully that with arming little faster they it a respect go-to-market, to seems the about can reps talk how of you the flywheel perhaps context a tools little bit at upgrade


thanks, Yes, it. Tom. Appreciate

awesome. been adds combination said funnel the a and awesome We just customer the marketing sales are team you really of have it's execution the it. team getting after driving really as And well as great excited, of as top from

here team there as we But You also the want the realizes for can motion. that part what's us that big add the as us, of with just to land made is velocity successful we our sales obviously, in so products. of premium

engagement, can't get the just we and secure we but deal hands get full if the sales got say, to, of in right on product, customer the listening. these when that's customers an the the so publishing on a success and we able And analytics great a velocity their kind okay, away, not other we've flywheel. and of that's side, team And goes as you team in increase

grow. us, these and products, for So from exist customer we growth add-on perspective, these covered like to we're what side be we're it is tremendous thing growth able feel the on side, team the And we a premium to last the trying and when to sales up continue proliferation both and dedicated it's there as just to the on Justyn the the don't, which to new win know the to I'll have success team of a even and we're business going cases opportunities say bigger, but just opportunities because of value. here, setting that have touched we're we seeing And well earlier grow. across amount organization. use add users We're not we

care others. case on or we customer growth many teams a teams the in know there's So even land success use if side customer other today, marketing our and

about sure account. potential kind of full how opportunity gambit it exists the And an thinking they're at making right that that we're of that's when the the knows team now so looking of


of the line comes from Sachs. Your question next Merwin from Chris Goldman


taking the much question. for so Okay, thanks

one I course, grow the and sales mentioned an in showing yield the effort things was market think of of improving on spend. I to know internationally, as remarks marketing And there's you well out you're great traction as. the prepared

will specifically as the you well be improving can Thank sales bit what XXXX. a talk move So and up that we driving yield in as as through you. that how we increased about marketing investment balancing with you're


the funnel, things Yes, is force driving business -- all and of the that the in improvements question, Where a the conversion across the free that the demo around the of upper business. thanks one revolves continually so cetera. one rates of really part make able the of process to from from the trial, of for funnel, of acquisition, kind top et new we're

yield. sales building that So we from acquisition think into the teams demo and website, cetera, flow, while et still like in out for folks When improved and is opportunity we're on what investing content from strategy there's or the our the them progress, an tremendous making the fully heavily side, the just getting engaged look cycle. visiting trial our are or about funnel


for Okay, on great. really strongly follow accelerated Thank you. Joe strong quarter. the that up And in then a quick billings number and the was just maybe

Thanks. of quarter? able any the it to out any call you say assume can there bit you was just of I about what curious a larger you sort about of sign organically like are billing, you customers or talk a saw impact wasn't As much sort But tailwind. what maybe are there. who duration on annual degree you tailwinds can to in And


stronger, Yes, towards as a let's than enterprise, that right, much billing the year. getting of more one are we're the think closing enterprise of Chris, end we're move thing QX, On mid from we there, we now, historically, I we're have more deals seeing to seeing the those the market say definitely

billings And the more incentive the side comes bit of an to the monthly, acceleration versus bit of also, there's front, market that to because even so SMB deals. more down you're annual annual to in kind and sign when team momentum there's and that incentive space, a going little is now do agency in also to on definitely so those you now saw it so on the quarter. annual close deals, a that incentive little We're with in sales


Arjun question comes Blair. a next Your line from from of William Bhatia


my Guys, you really I'll add question. taking And the results quarter. congrats on great for thank my

off question. on related Justyn, first on start with product the maybe you a I'll

these you care an emphasize capabilities in touched already maybe capabilities, in capabilities more the question. I separate earlier the think how curious platform and a side But You the enhancing just these to around of customers remarks add commerce access of And to to you're subscribed prepared versus core investing on core as bit your commerce. thinking incorporating thinking maybe and giving are that platform? engagement of out I'm into you're spinning solutions them it little as


Yes, great question.

there's that customers, part a are much our side, and So flows building and consider the skews unit that of for we're a to to thinking size, we're ACVs through on one we deal expansion, only think new when the enhancements drive to economics an about way product very where not from to couple to be they going improvements that the while is would to flavors, and things certainly and there retention opportunity into, categories I but the roadmap that seat couple improvements, et a growth be not I the our the core And the what opportunities. fall but in just those think count, cetera. capabilities, monetize

we've comps So that's features. set then other seen gravity enough around when of one the certain typically a flavor. And

some additional that or what repackage need we built an beyond point listening. capabilities a the or there's see analytics what So where going and that specific well. core what where SKU. they to similar as Once are the above reputation use the to for you're opportunity out us platform, customers' you of to with core of I case, think to And from us from us saw they the fitting platform, are a an as

we capability into customers are and in monetize locations entirely the profiles addition through You'll where new and managing. that of an the of example brought fold, also that our reputations,

things I ways that can new So additional to expansion, SKU, bunch it's it's a start development mentioned, or cetera. of a there's to it's through whether revenue, different contribute retention, seats, that et product the where


the it added then few think quarters, last your helpful customers bit. And over XXXX. to We you've about very additions. as customer little as many talked wanted That's just But touch on new did like a in Great. this I looks I color. you

point I'd they're if cohort, how platform. anything the differences customers else historically, any to into the there expansion coming noticing you're customers and landing, how see as new relative but see to these in looking this be seen are funnel, this to great with you've at you to you're that what So momentum out curious your new can cadence, the coming cohort are


it Ryan. thanks Yes, for is feels similar. question, very Most Arjun. This actually of

landing focusing the a and So the think marketing on those we're certainly And to lot on trial, about of place. same same, marketing I content. our I these similar having increased much those our approach and customers. in the we're see opportunities customer customers site growth conversations lot throughput of you driving with with But has the content it is people look our the and what we've and more in we're a and say great base. XX%. having We're plays can been increase the to very will bigger, running current approach ACV If that

the seen add-ons. of there's before of means Justyn So the an customers which for that's major evolution think these I things. customers. and cases, There's mentioned a we've different one I oftentimes And coming certification think takeaways a more bit in, use it the are users more of big more typically, our little

as few well. term mentioned Joe a customers other the are minutes these and just longer thing grow contracts opportunity The ago to into

about and seeing cohort been feel QX. that this QX the So and generally year, just we've whole in really especially great


there. add quick a And

that in another come in somewhat our more the that to think point to they likely the important the I is they of grow. about it past are customers, greater norm the and talk magnitude we larger out

growing, they opportunity see not a in bigger growth to -- it's models. that where a while what some are is other actually which represents case may counter so our And you us, ACVs are for


question next of Your from line comes Zlotsky Stanley. the Morgan from Stan


XXXX. all to the half you you are I in of net the previous on that I would so put essentially landing, greater add, new XXX, bigger first guys. essentially, Thank up much say guys follow net question the you customers, up much much, than you but the as specifically the as on wanted on Perfect. put of in focus XX,XXX, up QX,

just up. these quick much net that on What's was net just new those over customers I have specifically crossing net a kind of follow of plus of larger XX,XXX logo much existing how plus threshold plus XX follow the add, then the So new And new larger it lands versus logo a how up lands customers? for lands? driving on for those that XX,XXX and


Stan. the it's Ryan; quarter acquisition think seen historically a really is continue well. net market XX,XXX healthy balance. to strong up pretty When adds certainly we Thanks QX This about you business customers. execute our for new really actually is a the

also we've that So there. happening be from success to base. users a add-on. lot growth seen of we then tends current a both And saw our and lot of install But

would new say And that now. fact teams it's healthy right a in pretty as have business, this well growth the side. balance again, I the on to goes So both customer we back dedicated as

address? will I that growth question was So just healthy pretty what's second perspective. there one punch your driving two And larger from the think about


what's above driving lands momentum the initial the XX,XXX the that? That Yes, there?



is So premium again, of access, business teams the business access I've trying into social responsible years care, be that kind person marketing When into go social. what that it's combination, well as add-ons. from over just the PR marketing half the social users and comms the department care, now I've first to more I and Social it people of user a as the a in users expanded for has of healthy here the need that a been change to intelligence brand are started, From content? more, across want both And seeing what used media a support, we're to perspective, that was users just number social the seen and to platform. four tap

over the then more listening a from these but started over analytics year perspective. landing, to last they've users take So couple really the and it's a we've combination And added premium products of years. hold last

it's this than been add-on greater of users point. say at but combination are a So good the the both, slightly products that I'd


follow up context. with new you we Investor Got very a very put just add-ons strong Joe, Thank use analytics, getting maybe That's a as communications, we like Relations, well then for, as look premium Joe. guys And into traction cases just like around into and you, commentary reputation, at when helpful. them listening it. Ron.

can to into How you they So the net can down kind where retention start rates As from you. we as accelerate retention go from Thank calibrate saying and here can really how rate levels. you your all high beyond? are and dollar that right? go, we our start -- of to go XXXX, models dollar current high sit XXXX should net


number, we Yes, Stan, right think I specific as the larger years, over multiple next, what, you a we don't see to feeling will that I give I'll number XXX% pegging really have. know way more grow a increase, as this I a out than number to think our far continue customers now, see a like at we say

have large ago example, at they And our of base, customers if is that now six our customer growing four, now. to growing even back, what NDR are look a that years than growing our believe to part our Stan, we now decile five, decile there's so that. And from faster what customers, and for we and seven at, were top then five can at top no look reason years

areas feel least so about right growth for pretty see good we in now. those we And can the maintaining future at


from David Hynes of line question Your next from Genuity. comes Canaccord the


acceleration. see Great the you, results. guys. to Thank Congrats Hey. on the

evolving. see ask Justyn, you a about space to I how want question the

So a on if Qualtrics, us this and morning. you right, initiate a sort bunch take of stock that coverage of like

So for listening to you get And both I collection, the you with survey guys, of huge these for solving Venn on plenty where tech in converging time? room do problem is kind how or top look, them, cases over what functional primary are you There's it's do of or of reputation? -- the they're the of think diagrams If overlaps about Like I'd they're your thoughts but obviously, for love in capabilities data markets. that. see used the for management, doing mind we investors. think experience of think your mode


Thank question. great Yes, you.

couple a things of So I'd say there.

been that providing type we think analytics that the data that trends. the I of that's customers, really there to to just and able is important businesses valuable that's not because don't of has starting better understand the speaking I I all we're talking understand value we that exists not targeted know think a want? in what have a be the working folks is their these a is to immensely group the aspect that and that being think mind. but really that the And people survey known about but what specifically and focus their to So polar preferences we're inclination think not How specific distinction. an might provide yet They're serve as feedback, our important about it's that yet be we might a where they data when don't their are the they're it tools listening that with them? can universe, about

of I to. that think start some organization like get Qualtrics can to

or a interesting et in people because I'll marketers working platforms, dynamic is a people, nature. a fluid, there's the But really into that better turn place. our by the that understanding action, of product people, through mean platform of overlap that same place. whether in thing all serve that lot cetera, the is that it's creates it's our how And customers. customers campaigns think the then right? can same planning bit horizontal I information to in all customer other on can engagement what certainly provides The service It's happening for it's the everyone the be value I that that the the there. say And So

to drive on really we a it's that world to have action can get the information like pulse kind real-time decisions. the kind where is of the and proximity of quicker So where

of the that will the just probably come bigger And is the a kind that action so platforms all use be distinction. able cases immediate of those of today. able I brands together are fact think are shaking and to drive the and But really that two Sprout to across

So be to important. I think going to continue that's


participate? want come up Sprout I've handful like on the past, call. about Look, and it's now you in heard I Can of might to there. see a then I'm about just there? Yes. times color not maybe the social talk ask commerce. Good sure And in And where elaborate specifically how opportunities you you


totally. Yes,

commitment over from last start by it's platforms saying picked couple the I'll So quarters. up the really around commerce of the has

that seen the earnings things heard their in we've on some and focused on. think just of I some that they're of that

For us, the opportunity is in two dimensions.

and able they have The first benefit, That's that that The etc, those are to we capture tools to channels, there private, that is it, is any to to to engagement whether happening customers engage value an it's our drive that's in happening be social more area public, etc. business add can to more like stand conversation the ours channels. more through able where with time need for right? social things,

effect. like consumers of as that it's are we more things So do tide happening in that the kind rising better. a social, The

dimension second directly of and around to introduce. is The capabilities commerce the kind that the platform

offerings whether providing XXXX, the provide becomes for going tools storefronts the a and variety is products to getting ways We're efforts, whether So those to to it's and the using analytics That those whether us in various of publishing where from actually digital of of handful There's what efficiency data out. people, the be. listening tailor on to start a of those of different on front are them a through around play those kind opportunities kind it's related of be things working to clear efforts real lot in adjust will it that to the commerce. particularly as could lot of time? to, evolve platforms

that's of days. I early think kind still


comes Berg the next question Needham Scott Company. from Your & from line of


Hi, clock. we're everyone. the up great I the against see Congrats on quarter.

obviously bit year. forward start here the going we've just platform it's of but figure from that a But kind as offices what or At from had online about trends trying you this is thinking So I I'll year? big of front question, one your and from moving I'm historically. of the about work-at-home more, spoken it reopen platforms the reopen marketing some things make as it's are benefit to to usage hope the out support whether people least, a a how little do this


the it I the year was the Yes. think of we ways and is It with over that to about people discovering this to they I That and before brands new allowed Great they're haven't last way for catalyst hurdle Amazon a Similar is discover people way, mean behaved in events experience, great can right? engagement. very think buying something purchase question. that as that through interaction really better. something be etc, beneficial. who products and made maybe do, interacting now a Prime a the and

time, over at That that just this lasting lot social was But lot opinion, brands inevitable terms least consumer of that effect, period think going So in a across of is it's be, trends engagement to to a in going the a right? accelerated. we of more that stick might are We been last The longer -- our the with happening. believe on it on reason hours to that go any have into own. a etc, think as just people than pent-up accelerating faster hasn't change might over dramatically its shift like that the so there's around. some office, year but probably there's of shifted timeline it's


the Knoblauch next Berenberg from Your of Capital question Markets. from comes Brett line


question. for guys. my Thanks Hi, taking

one Just one me. for quick

bit a in experience messaging remarks. the the mentioned You prepared

that customers via maybe you elaborate up or do channels? their your to it you'd you. to set Just customers messaging have to product your is engage set to on could wondering and what up Thank enable get how if with currently


great Yes, question.

brands to set for has is up way some business product do and they do the channels, to to people messaging, So There expansion with options more today. of folks think communicate does just with today, with. it do the our investments are want we who that that that around right? When it of about

But to can the additional also want seen brands. be There that sure preferred there. many we've those that with just have good as we've that's capabilities channel are and adding evolved become coverage we So of communication there. make got patterns as we

over introduce others. new email can you phone or dynamic capabilities just possible that this environment it's where So or aren't

coverage, us those and And we're platform on about like a look our next messaging and really thinking that Those of is customers priorities year. we've then of are our so the aspect everywhere this be of perspective. from couple to need sure what generations messaging interactions that got the making


Mr. questions no further There at this are time.

turn remarks. back some closing I call to Howard, Justyn for you over the

Justyn Howard

Well, today. Fantastic. thank us questions. joining All right. great you all for Thanks for the

I a minutes. did few think over we go

that. So of a know support for with a to the attending. the to the thank events for catching you be always Thanks we wonderful throughout the conversations forward evening. Have day there's team, we'll up and our some look I today. in quarter, busy you


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

disconnect. now may You