Social media management software company Sprout (NASDAQ:SPT) will be reporting results this Wednesday after market close. Here’s what investors should know.
Sprout Social beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $109.3 million, up 12.9% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It added 54 enterprise customers paying more than $10,000 annually to reach a total of 9,381.
Is Sprout Social a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sprout Social’s revenue to grow 11.6% year on year to $110.9 million, slowing from the 25.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 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% on average.
Looking at Sprout Social’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Upland’s revenues decreased 23% year on year, meeting analysts’ expectations, and Freshworks reported revenues up 17.5%, topping estimates by 2.9%. Upland traded up 4.9% following the results while Freshworks was down 2.5%.
Read our full analysis of Upland’s results here and Freshworks’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the sales and marketing software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Sprout Social is down 20.1% during the same time and is heading into earnings with an average analyst price target of $27 (compared to the current share price of $16.73).
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