Overview

* Sprout Social ( SPT ) Q3 revenue slightly beats analyst expectations with a 13% year-over-year increase

* Non-GAAP operating income for Q3 rises to $13.7 mln from $7.5 mln last year

* Company expands enterprise segment and launches new platform integrations

Outlook

* Sprout Social ( SPT ) expects Q4 revenue between $118.2 mln and $119.0 mln

* Company forecasts full-year revenue between $454.9 mln and $455.7 mln

* Sprout Social ( SPT ) anticipates Q4 non-GAAP net income per share between $0.15 and $0.17

Result Drivers

* ENTERPRISE EXECUTION - Strong execution in enterprise segment through customer adoption, account expansion, and strategic partnerships, per CEO Ryan Barretto

* cRPO GROWTH - Current remaining performance obligations grew 17% year-over-year, indicating strong demand

* LARGE CUSTOMER GROWTH - Number of customers contributing over $50,000 in ARR increased by 21% year-over-year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $115.59 $114.80

Revenue Beat* mln mln (12

Analysts

)

Q3 EPS -$0.16

Q3 Net -$9.38

Income mln

Q3 Gross $89.81

Profit mln

Q3 $98.92

Operatin mln

g

Expenses

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Sprout Social Inc ( SPT ) is $23.00, about 55.6% above its November 4 closing price of $10.21

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)