What factors drove the changes in Sprout Social's revenue and profit?

What does Sprout Social do and what are its main business segments?

Did Sprout Social beat or miss consensus estimates last quarter?

What were the key takeaways from Sprout Social’s earnings call?

What is the revenue and EPS growth rate for Sprout Social year over year?

What is Sprout Social's latest dividend and current dividend yield?

What is Sprout Social's gross profit margin?

What guidance did Sprout Social's management provide for the next earnings period?

- **Record Profitability**: 11.9% non-GAAP operating margin, 460 bps YoY improvement.
- **AI-Driven Growth**: Launch of conversational AI agents, MCP integration, and 70%+ $50K+ ARR customer growth.
- **NewsWeb Momentum**: $258.5 million RPO, 17% YoY growth, and 2X+ ARR per deal.
- **Q4 Outlook**: Revenue $118.2-$119.0 million, FY25 operating income $46.1-$47.1 million.
- **Strategic Focus**: Differentiation via social data access, enterprise AI, and NewsWeb integration.

**【Management Opening Remarks】**
- Alex Kurtz provided procedural details and introduced the call participants, emphasizing forward-looking statements and non-GAAP financial measures.

**【CEO Commentary】**
- **Revenue Growth**: $115.6 million, 13% YoY, with non-GAAP operating margin of 11.9%, a 460 basis point improvement.
- **Customer Expansion**: 21% growth in 50K+ ARR customers; $50K+ ARR cohort now 2,000+ customers, accounting for nearly half of revenue.
- **NewsWeb Integration**: Early momentum with $258.5 million RPO, strategic wins with global brands, and 17% YoY RPO growth.
- **AI Strategy**: Launch of AI Agent for conversational data, MCP integration, and AI-powered features like translation and TikTok listening.
- **Product Launches**: Canva/Adobe Express integrations, Service Cloud expansion, and enterprise wins totaling $3.4 million in Q3.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420 million, Non-GAAP EPS $1.08 (vs. $0.95 est.), $10.3 million pre-cash flow.
- **Guidance Update**: Q4 2025 revenue $118.2-$119.0 million, FY25 revenue $454.9-$455.7 million, operating income $46.1-$47.1 million.
- **Liquidity**: $10.3 million pre-cash flow, 80%+ 12-month pre-cash flow margin growth.

**【Q&A Highlights】**
- **Market Positioning**: Balancing enterprise growth (15% ACV) with SMB challenges, leveraging AI for SMB efficiency.
- **Profitability**: 460 bps margin expansion driven by revenue overperformance and AI cost savings.
- **NewsWeb Momentum**: $258.5 million RPO, 2X+ ARR per deal, and 17% YoY RPO growth.
- **AI Differentiation**: Proprietary data access, MCP standard adoption, and end-to-end AI integration across workflows.

**【Closing Remarks】**
- Invitation to November 18 Breaking Ground event to showcase AI agents.
- Appreciation for team efforts and customer partnerships.


Sprout Social, Inc. (SPT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SPT

SPT fundamentals

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