Sprout Social (SPT) Q4 Earnings: What To Expect
Social media management software company Sprout (NASDAQ:SPT) will be reporting earnings tomorrow afternoon. Here's what you need to know.
Last quarter Sprout Social reported revenues of $85.53 million, up 31% year on year, beating analyst revenue expectations by 1.6%. It was a solid quarter for the company, with revenue narrowly toppin analysts'expectations. Next quarter's revenue guidance also came in higher than Wall Street's estimates. For the full year, revenue and adjusted operating profit guidance were both ahead. The company added 720 enterprise customers paying more than $10,000 annually to a total of 8,111.
Is Sprout Social buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Sprout Social's revenue to grow 30.2% year on year to $90.69 million, in line with the 30.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.3%.
Looking at Sprout Social's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. HubSpot delivered top-line growth of 23.9% year on year, beating analyst estimates by 4.1% and Freshworks reported revenues up 20.2% year on year, exceeding estimates by 1%. HubSpot traded up 5.3% on the results, and Freshworks was down 3%.
Read our full analysis of HubSpot's results here and Freshworks's results here.
There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 2.9% over the last month. Sprout Social is up 1.6% during the same time, and is heading into the earnings with analyst price target of $71.7, compared to share price of $64.6.
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