Update shared on09 Aug 2025
Fair value Decreased 15%The downward revision in Sprout Social’s price target reflects a higher discount rate and lower future P/E multiple, resulting in a reduced consensus fair value from $27.00 to $24.36.
What's in the News
- Announced expanded integration with Salesforce Digital Engagement, enabling unified social, email, chat, and voice customer support in a single workspace and leveraging Salesforce AI and data workflows.
- Issued Q3 2025 revenue guidance of $114.4–$115.2 million and full-year guidance of $452.9–$455.9 million.
- Implemented Coupa’s spend management solutions to increase organizational visibility, drive margin growth, and streamline procurement and AP processes.
- Launched new Care by Sprout Social innovations, including bot channels, enhanced workflow customization, compliance features, and actionable insights via a new Cases API, strengthening the platform’s AI-driven capabilities and social care offering.
- Cited risks including potential impacts from price increases, market and economic uncertainty, system outages, ability to convert customers, regulatory changes, integration of acquisitions, and cybersecurity threats.
Valuation Changes
Summary of Valuation Changes for Sprout Social
- The Consensus Analyst Price Target has fallen from $27.00 to $24.36.
- The Discount Rate for Sprout Social has risen from 7.97% to 8.56%.
- The Future P/E for Sprout Social has fallen from 26.27x to 24.51x.
Disclaimer
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