Social media management platform Sprout Social (NASDAQ: SPT) will be reporting results this Thursday after market close. Here’s what investors should know.
Sprout Social beat analysts’ revenue expectations last quarter, reporting revenues of $120.9 million, up 12.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year guidance of slowing revenue growth. It lost 5,953 enterprise customers paying more than $10,000 annually and ended up with a total of 3,803.
Is Sprout Social a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sprout Social’s revenue to grow 10.1% year on year, slowing from the 12.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprout Social rarely misses Wall Street’s revenue estimates.
Looking at Sprout Social’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Upland Software’s revenues decreased 23.5% year on year, meeting analysts’ expectations, and Zeta Global reported revenues up 49.9%, topping estimates by 7%. Upland Software traded up 15.2% following the results while Zeta Global’s stock price was unchanged.
Read our full analysis of Upland Software’s results here and Zeta Global’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 12.4% on average over the last month. Sprout Social is up 17% during the same time and is heading into earnings with an average analyst price target of $9.89 (compared to the current share price of $6.76).
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