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CHICAGO - Sprout Social, Inc. (NASDAQ:SPT) reported fourth-quarter earnings that beat analyst expectations, but shares tumbled 5% after the company provided weak revenue guidance for the upcoming quarter and full year.
The social media management software provider posted adjusted earnings per share of $0.19, surpassing the analyst estimate of $0.15. Revenue for the quarter came in at $107.1 million, slightly above the consensus estimate of $106.76 million and up 14% YoY.
However, Sprout Social’s outlook fell short of expectations. For the first quarter of 2025, the company expects revenue between $107.2 million and $108.0 million, below the consensus estimate of $110.17 million. Full-year 2025 revenue guidance of $448.1 million to $453.1 million also missed analyst projections of $463.93 million.
"The Sprout team delivered a solid fourth quarter, driving 14% revenue growth and 26% growth in cRPO, laying the foundation for future growth in 2025 and beyond," said CEO Ryan Barretto. "As we work to define the future of social media management, we remain focused on execution—winning the enterprise, driving customer health, expanding our partnership ecosystem, and driving deeper engagement in our customer base."
The company reported current remaining performance obligations (cRPO) of $249.4 million as of December 31, 2024, up 26% YoY. Sprout Social also grew its number of customers contributing over $50,000 in annual recurring revenue by 23% YoY to 1,718.
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