Sprout Social Inc Stock Price, News & Analysis

Sprout Social reported a strong third quarter in 2020, achieving total revenue of $33.7 million, up 27% from the previous year. The company added record net new customers and increased its total annual recurring revenue (ARR) to $141.9 million, reflecting a 30% year-over-year growth. Despite a GAAP net loss of ($7.0 million), their cash reserves grew to $167.3 million. The guidance for Q4 estimates revenue between $35.8 million and $35.9 million, with total revenue for 2020 projected at $131.4 million to $131.5 million, marking a 28% growth.

Sprout Social has announced a groundbreaking integration with Glassdoor, allowing users to access and respond to employee reviews directly from Sprout's platform. This integration enhances employer brand management by streamlining review monitoring and response processes, crucial for attracting and retaining talent. By merging traditional social media interactions with employee feedback, Sprout aims to cultivate a holistic brand strategy. This innovative step positions Sprout as a leader in combining corporate and employer branding, enabling a cohesive approach to brand perception.

Sprout Social announced new integrations with Microsoft Dynamics 365, HubSpot, and Zendesk, enhancing internal collaboration for customer service teams. These integrations allow social and support teams to work seamlessly with sales, improving efficiency in managing customer interactions. According to Andrew Caravella, VP of Global Partnerships, these integrations combat departmental silos, enabling brands to leverage rich customer engagements. Sprout Social supports over 20,000 brands globally, providing comprehensive social media solutions.

Sprout Social (Nasdaq: SPT) announced it will release its third-quarter financial results for the period ending September 30, 2020, on November 9, 2020, after market close. A conference call to discuss these results will be held at 4:00 p.m. CT. The call can be accessed via phone or through a live webcast. Sprout Social, a leader in cloud-based social media management software, serves over 24,000 brands and agencies, providing analytics, management, and customer care solutions across major social networks.

Sprout Social (Nasdaq: SPT) has successfully closed its follow-on public offering of 6,900,000 shares of Class A common stock at a price of $27.50 per share, which includes the full exercise of the underwriters’ option for 900,000 additional shares. The company sold 1,612,500 shares, while selling stockholders offered 5,287,500 shares. Importantly, Sprout Social did not receive proceeds from the selling stockholders. Leading managers included Morgan Stanley and Goldman Sachs, among others.

Sprout Social's recent survey reveals shifts in social media usage amid the pandemic. Key findings show that 62% of consumers increased social interaction for personal connections, while 48% seek entertainment. Additionally, 55% use social to stay informed on news, and 36% for educational purposes. A significant 58% of consumers prefer brands sharing their values, but missteps can lead to consequences, with 42% ready to switch brands if companies fail to meet social expectations. The survey, conducted from July 17-20, 2020, included 1,001 U.S. consumers.

Sprout Social (Nasdaq: SPT) announced a follow-on public offering of 6,000,000 shares of Class A common stock at $27.50 each. The offering includes 1,500,000 shares from the company and 4,500,000 from selling stockholders, with an additional 900,000 shares available to underwriters. The company will not receive proceeds from stockholder sales. Closing is anticipated around August 17, 2020. Leading managers include Morgan Stanley and Goldman Sachs. The offering is subject to standard closing conditions.

Sprout Social, Inc. (Nasdaq: SPT) announced a cancellation of its presentation at the Canaccord Genuity 40th Annual Growth Conference due to changes in management schedules linked to its follow-on public offering. CEO Justyn Howard, CFO Joe Del Preto, and SVP of Global Sales Ryan Barretto will present at the KeyBanc Capital Markets’ Future of Technology Series on August 18, 2020. A registration statement for the offering has been filed with the SEC but is not yet effective. A prospectus will be available through various financial institutions and online via the SEC's website.