CHICAGO - Sprout Social, Inc. (NASDAQ: NASDAQ:SPT), a leading provider of cloud-based social media management software, announced its fourth-quarter financial results, surpassing analyst revenue expectations but projecting a softer profit outlook for the first quarter of 2024.
The company reported adjusted earnings per share (EPS) of $0.02 for the fourth quarter, exceeding the consensus estimate of $0.00. Revenue for the quarter reached $93.6 million, outperforming the analyst forecast of $90.67 million, marking a 34% increase from the same quarter last year.
Despite the positive fourth-quarter performance, Sprout Social's stock fell approximately 12% due to its first-quarter profit guidance, which came in below analyst expectations. The company forecasts an adjusted EPS between $0.00 and $0.01 for Q1 2024, compared to the consensus estimate of $0.03. Revenue guidance for the first quarter is set between $97.2 million and $97.3 million, aligning closely with the consensus of $97.071 million.
For the full year 2024, Sprout Social anticipates adjusted EPS to be in the range of $0.22 to $0.23, which is in line with the consensus estimate of $0.22. The company expects full-year revenue to be between $425.3 million and $425.5 million, slightly above the analyst consensus of $424.9 million.
Sprout Social's CEO and co-founder, Justyn Howard, expressed satisfaction with the company's strong fourth-quarter results and its positioning for continued growth. "We're building an enduring software company centered on amazing products, amazing people, and overdelivering for our customers every day," Howard stated. The company's Annual Recurring Revenue (ARR) as of December 31, 2023, stood at $385.2 million, a 30% increase YoY.
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