company background image
SPT

Sprout Social NasdaqCM:SPT Stock Report

Last Price

US$66.18

Market Cap

US$3.6b

7D

7.8%

1Y

-35.2%

Updated

14 Aug, 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, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sprout Social
Historical stock prices
Current Share PriceUS$66.18
52 Week HighUS$145.42
52 Week LowUS$38.39
Beta1.09
1 Month Change18.07%
3 Month Change51.75%
1 Year Change-35.23%
3 Year Changen/a
5 Year Changen/a
Change since IPO298.67%

Recent News & Updates

Aug 13

Baron Funds - Sprout Social: Recurring SaaS Model, Cash Rich, And Strong Returns

Sprout Social serves 32,000 customers across 100 countries, and 90% of the leads are inbound with a 30-day free trial, which highlights the value of the product. Salesforce, Inc. recently decided to sunset its product and exit the market (following Adobe and Oracle), choosing Sprout as its preferred partner. We are attracted to Sprout’s recurring SaaS model, which is 99% subscription, cash rich balance sheet, and strong returns on growth investments. The following segment was excerpted from this fund letter. Sprout Social, Inc. (SPT) Sprout Social, Inc. provides cloud-based social media management software. Sprout’s industry-leading platform empowers businesses of all sizes to leverage social media–Facebook (META), Twitter (TWTR), Instagram, LinkedIn, Pinterest (PINS), and TikTok–for marketing, customer care, public relations, business intelligence, and collecting product feedback, among other use cases. Brands are increasingly going directly to consumers as more products are purchased online and through social platforms, and recent developments around first party/IDFA are likely to augment this trend. Sprout is the solution to consolidate and centralize the complexity of social channels into an elegant, integrated platform that can be leveraged across an organization. Sprout continues to differentiate its platform through its clean user interface, easy onboarding process, and single code base. The company serves 32,000 customers across 100 countries, and 90% of the leads are inbound with a 30-day free trial, which highlights the value of the product. Recent account wins include IBM Watson, Department of Labor, and Kraft Heinz (KHC). Sprout’s home-grown, single-code base enables the company to innovate and deliver feature enhancements to all customers at once, a distinct advantage versus others with customized codes, heavy professional services requirements, and long sales cycles. Sprout customers typically spend four to five hours a day on the platform with an annual contract value of just around $7,000. Further, Sprout’s deep, integrated network relationships are hard to replicate, and provide the customer ease of use of the product without having to switch modules. The recent TikTok integration highlights the company’s speed to market and leadership in the space. Salesforce, Inc. (CRM) recently decided to sunset its product and exit the market (following Adobe and Oracle), choosing Sprout as its preferred partner. Salesforce’s decision is a validation of the company’s platform development efforts and domain expertise and provides an installed base of 4,000 large customers for Sprout to convert over the coming years (end of life for Salesforce’s product is 2024). We are attracted to Sprout’s recurring SaaS model, which is 99% subscription, cash rich balance sheet, and strong returns on growth investments. The company has grown its customers at a 15% CAGR over the past two years, with growth of 36% total annual recurring revenue, seeing the value of those customers increase as Sprout moves up market and layers on premium products.

Shareholder Returns

SPTUS SoftwareUS Market
7D7.8%0.7%3.2%
1Y-35.2%-15.5%-10.2%

Return vs Industry: SPT underperformed the US Software industry which returned -15.5% over the past year.

Return vs Market: SPT underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is SPT's price volatile compared to industry and market?
SPT volatility
SPT Average Weekly Movement15.1%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: SPT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: SPT's weekly volatility (15%) 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, Inc. Fundamentals Summary

How do Sprout Social's earnings and revenue compare to its market cap?
SPT fundamental statistics
Market CapUS$3.62b
Earnings (TTM)-US$41.26m
Revenue (TTM)US$221.22m

16.4x

P/S Ratio

-87.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPT income statement (TTM)
RevenueUS$221.22m
Cost of RevenueUS$54.77m
Gross ProfitUS$166.45m
Other ExpensesUS$207.71m
Earnings-US$41.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.75
Gross Margin75.24%
Net Profit Margin-18.65%
Debt/Equity Ratio0%

How did SPT perform over the long term?

See historical performance and comparison