Social media management software company Sprout (NASDAQ:SPT) will be reporting results tomorrow after market hours. Here's what you need to know.
Last quarter Sprout Social reported revenues of $75.2 million, up 31% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 455 enterprise customers paying more than $10,000 annually to a total of 7,107.
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This quarter analysts are expecting Sprout Social's revenue to grow 28.2% year on year to $78.7 million, slowing down from the 37.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.03%.
With Sprout Social being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for sales and marketing software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 8.7% over the last month. Sprout Social is up 17.9% during the same time, and is heading into the earnings with analysts' average price target of $61.58, compared to share price of $55.02.
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The author has no position in any of the stocks mentioned.