Social media management software company Sprout (NASDAQ: SPT) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Sprout Social met analysts’ revenue expectations last quarter, reporting revenues of $107.1 million, up 14.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ billings estimates but full-year guidance of slowing revenue growth. It added 208 enterprise customers paying more than $10,000 annually to reach a total of 9,327.
Is Sprout Social a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sprout Social’s revenue to grow 11.1% year on year to $107.6 million, slowing from the 28.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sprout Social has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.
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. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the resultswhile Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 17% on average over the last month. Sprout Social is up 8.2% during the same time and is heading into earnings with an average analyst price target of $30 (compared to the current share price of $20.77).
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