In This Article:
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Revenue: $107.1 million, representing 14% year-over-year growth.
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Subscription Revenue: $105.9 million, up 15% year over year.
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Non-GAAP Operating Margin: Over 10% for the first time in operating history.
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Non-GAAP Free Cash Flow: $6.6 million for the quarter; $29.7 million for fiscal 2024, up 2.9 times year-over-year.
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Current Remaining Performance Obligations (cRPO): $249.4 million, representing 26% year-over-year growth.
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RPO: $351.5 million, up 28% year over year.
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Annual Contract Value (ACV): $14,651, up 19% year over year.
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Customers with >$10,000 ARR: Grew 7% year over year.
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Customers with >$50,000 ARR: Grew 23% year over year.
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Non-GAAP Operating Income: $11.4 million, up from $1.7 million a year ago.
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Dollar-Based Net Retention Rate (NDR): 104% in 2024, compared to 107% in 2023.
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Guidance for Q1 2025 Revenue: $107.2 million to $108.0 million.
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Guidance for Q1 2025 Non-GAAP Operating Income: $8.5 million to $9.5 million.
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Guidance for Full Year 2025 Revenue: $448.1 million to $453.1 million.
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Guidance for Full Year 2025 Non-GAAP Operating Income: $38.2 million to $43.2 million.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sprout Social Inc (NASDAQ:SPT) reported a 14% year-over-year revenue growth in Q4 2024, reaching $107.1 million.
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The company achieved a 26% year-over-year growth in current remaining performance obligations (cRPO), indicating strong future revenue potential.
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Revenue from the $50,000 ARR customer segment grew over 35% in FY2024, highlighting success in the enterprise market.
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Sprout Social Inc (NASDAQ:SPT) closed the largest new business ACV win in its history with a Fortune 500 financial services company.
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The company reported a quarterly non-GAAP operating margin of over 10% for the first time, demonstrating improved profitability.
Negative Points
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The demand environment in FY2025 is expected to remain unchanged from FY2024, indicating potential challenges in achieving higher growth.
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Sprout Social Inc (NASDAQ:SPT) experienced a decline in dollar-based net retention rate (NDR) from 107% in 2023 to 104% in 2024.
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The company implemented a restructuring in Q4 2024, resulting in a $3 million restructuring expense.
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Guidance for FY2025 indicates a more measured approach, with revenue growth expected to be modest compared to previous years.
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The company anticipates a severance expense of approximately $2.6 million in Q1 2025 due to restructuring focused on customer success.