Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Sprout Social (NASDAQ:SPT) reported worse-than-expected first-quarter revenue results on Thursday.
Sprout Social posted adjusted earnings of 10 cents per share, versus market estimates of 1 cents per share. The company's quarterly sales came in at $96.874 million, missing market estimates of $97.306 million, according to data from Benzinga Pro.
"We believe our business has fundamentally changed for the better over the past 18 months and we nicely overperformed our gross retention and margin plans during Q1," said Joe Del Preto, CFO. "We underestimated the magnitude of enterprise seasonality that now comes with our business mix, while also self-inducing sales execution headwinds during Q1 that we believe were important to position us for future success. We have factored Q1 underperformance and tightened strategic focus into our reduced 2024 revenue forecast, though we believe we're now positioned for greater long- term success."
Sprout Social shares fell 3.5% to close at $48.15 on Thursday.
These analysts made changes to their price targets on Sprout Social following earnings announcement.
- Piper Sandler cut the price target on Sprout Social from $66 to $40. Piper Sandler analyst Clarke Jeffries downgraded the stock from Overweight to Neutral.
- Baird slashed the price target on Sprout Social from $72 to $45. Baird analyst Rob Oliver downgraded the stock from Outperform to Neutral.
- Needham lowered the price target on Sprout Social from $75 to $55. Needham analyst Scott Berg maintained a Buy rating.
- Oppenheimer cut the price target on Sprout Social $76 to $43. Oppenheimer analyst Brian Schwartz maintained an Outperform rating.
- BTIG analyst Matt VanVliet downgraded Sprout Social from Buy to Neutral.
- Keybanc analyst Jason Ader downgraded Sprout Social from Overweight to Sector Weight.
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