Social media management software company Sprout (NASDAQ:SPT) will be announcing earnings results tomorrow after market close. Here's what to expect.
Sprout Social (NASDAQ:SPT) beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $93.58 million, up 34.3% year on year. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates but decelerating customer growth. It added 578 enterprise customers paying more than $10,000 annually to reach a total of 8,689.
Is Sprout Social a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Sprout Social's revenue to grow 29.4% year on year to $97.32 million, slowing from the 31% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
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 has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Sprout Social's peers in the sales and marketing software segment, only VeriSign (NASDAQ:VRSN) has reported results so far. It met analysts' revenue estimates, delivering year-on-year sales growth of 5.5%. The stock was down 4% on the results.
Read the full analysis of VeriSign's results on StockStory. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. Sprout Social is down 10.9% during the same time and is heading into earnings with an average analyst price target of $72.8 (compared to the current share price of $50.45).