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SPT

Sprout Social NasdaqCM:SPT Stock Report

Last Price

US$58.28

Market Cap

US$3.2b

7D

-16.3%

1Y

-34.6%

Updated

01 Jul, 2022

Data

Company Financials +
SPT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SPT Stock Overview

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Sprout Social Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sprout Social
Historical stock prices
Current Share PriceUS$58.28
52 Week HighUS$145.42
52 Week LowUS$38.39
Beta1.51
1 Month Change12.77%
3 Month Change-29.67%
1 Year Change-34.65%
3 Year Changen/a
5 Year Changen/a
Change since IPO251.08%

Recent News & Updates

Jun 14
What Is Sprout Social, Inc.'s (NASDAQ:SPT) Share Price Doing?

What Is Sprout Social, Inc.'s (NASDAQ:SPT) Share Price Doing?

Sprout Social, Inc. ( NASDAQ:SPT ), might not be a large cap stock, but it saw a double-digit share price rise of over...

May 04

Sprout Social: You Won't Regret Buying The Dip

Shares of Sprout Social dipped more than 10% after reporting Q1 results, despite beating Wall Street's expectations. The company raised its growth outlook for the year and is expecting robust 34-35% y/ growth over FY21. Sprout Social remains a competent player in a nascent market for social media management tools, and addresses a large >$50B TAM. It is also close to hitting breakeven on a pro forma operating margin basis. The company's ~11x forward revenue multiple is reasonable for Sprout Social's growth profile.

Shareholder Returns

SPTUS SoftwareUS Market
7D-16.3%-4.7%-2.5%
1Y-34.6%-23.7%-21.2%

Return vs Industry: SPT underperformed the US Software industry which returned -23.6% over the past year.

Return vs Market: SPT underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is SPT's price volatile compared to industry and market?
SPT volatility
SPT Average Weekly Movement16.9%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: SPT is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: SPT's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2010887Justyn Howardhttps://www.sproutsocial.com

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It provides cloud software that brings together social messaging, data, and workflows in a unified system of record, intelligence, and action. The company offers provides various integrated tools in a range of functions comprising social engagement/response, publishing, reporting and analytics, social listening and business intelligence, reputation management, employee advocacy, and automation and workflows.

Sprout Social Fundamentals Summary

How do Sprout Social's earnings and revenue compare to its market cap?
SPT fundamental statistics
Market CapUS$3.17b
Earnings (TTM)-US$32.09m
Revenue (TTM)US$204.47m

15.5x

P/S Ratio

-98.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPT income statement (TTM)
RevenueUS$204.47m
Cost of RevenueUS$50.78m
Gross ProfitUS$153.69m
Other ExpensesUS$185.78m
Earnings-US$32.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.59
Gross Margin75.16%
Net Profit Margin-15.69%
Debt/Equity Ratio0%

How did SPT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SPT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPT?

Other financial metrics that can be useful for relative valuation.

SPT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.7x
Enterprise Value/EBITDA-109.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SPT's PS Ratio compare to its peers?

SPT PS Ratio vs Peers
The above table shows the PS ratio for SPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average7.2x
AYX Alteryx
5.9x15.8%US$3.4b
WK Workiva
7.3x17.2%US$3.4b
SMAR Smartsheet
6.9x24.1%US$4.2b
APPF AppFolio
8.5x18.1%US$3.3b
SPT Sprout Social
15.5x27.7%US$3.2b

Price-To-Sales vs Peers: SPT is expensive based on its Price-To-Sales Ratio (15.5x) compared to the peer average (7.2x).


Price to Earnings Ratio vs Industry

How does SPT's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: SPT is expensive based on its Price-To-Sales Ratio (15.5x) compared to the US Software industry average (4.4x)


Price to Sales Ratio vs Fair Ratio

What is SPT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio15.5x
Fair PS Ratio10.7x

Price-To-Sales vs Fair Ratio: SPT is expensive based on its Price-To-Sales Ratio (15.5x) compared to the estimated Fair Price-To-Sales Ratio (10.7x).


Share Price vs Fair Value

What is the Fair Price of SPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPT ($58.28) is trading above our estimate of fair value ($38.55)

Significantly Below Fair Value: SPT is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPT's PEG Ratio to determine if it is good value.


Discover undervalued companies

Future Growth

How is Sprout Social forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SPT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SPT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SPT's revenue (27.7% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: SPT's revenue (27.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPT's Return on Equity is forecast to be low in 3 years time (0.5%).


Discover growth companies

Past Performance

How has Sprout Social performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPT is currently unprofitable.

Growing Profit Margin: SPT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPT is unprofitable, and losses have increased over the past 5 years at a rate of 5.7% per year.

Accelerating Growth: Unable to compare SPT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (26.8%).


Return on Equity

High ROE: SPT has a negative Return on Equity (-22.48%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Sprout Social's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SPT's short term assets ($226.8M) exceed its short term liabilities ($107.3M).

Long Term Liabilities: SPT's short term assets ($226.8M) exceed its long term liabilities ($20.4M).


Debt to Equity History and Analysis

Debt Level: SPT is debt free.

Reducing Debt: SPT had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SPT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.2% per year.


Discover healthy companies

Dividend

What is Sprout Social current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPT's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SPT has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Justyn Howard (42 yo)

12.17yrs

Tenure

US$5,614,415

Compensation

Mr. Justyn Russell Howard is a Co-Founder of Sprout Social, Inc. and serves as its Chief Executive Officer and Director since April 2010. He serves as Chairman at Sprout Social, Inc. since December 28, 202...


CEO Compensation Analysis

Compensation vs Market: Justyn's total compensation ($USD5.61M) is about average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Justyn's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SPT's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: SPT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SPT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sprout Social, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sprout Social, Inc.
  • Ticker: SPT
  • Exchange: NasdaqCM
  • Founded: 2010
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$3.173b
  • Shares outstanding: 54.44m
  • Website: https://www.sproutsocial.com

Number of Employees


Location

  • Sprout Social, Inc.
  • 131 South Dearborn Street
  • Suite 700
  • Chicago
  • Illinois
  • 60603
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.