Social media management platform Sprout Social (NASDAQ: SPT) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
Sprout Social beat analysts’ revenue expectations last quarter, reporting revenues of $121.5 million, up 11.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ billings estimates.
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 9.3% year on year, slowing from the 12.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sprout Social has a history of exceeding Wall Street’s expectations.
Looking at Sprout Social’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta Global delivered year-on-year revenue growth of 43.5%, beating analysts’ expectations by 5.2%, and Wix reported revenues up 14.9%, topping estimates by 1.9%.
Read our full analysis of Zeta Global’s results here and Wix’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 9.6% on average over the last month. Sprout Social is up 6.2% during the same time and is heading into earnings with an average analyst price target of $9.67 (compared to the current share price of $8.75).
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