Sprout Social, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sprout Social, Inc. has filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

Sprout Social, Inc. (SPT) filed a Annual Report (10-K) with the SEC on February 23, 2024. Sprout Social, Inc. filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in the 'SERVICES-PREPACKAGED SOFTWARE' industry. Sprout Social is incorporated in Delaware and headquartered in Chicago, IL. The filing includes detailed financial information for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking Sprout Social, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sprout Social's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial statements and risk factors disclosed in this report are essential for stakeholders to understand the company's revenue streams, profitability, and potential challenges in the software services market.

Risk Assessment

Risk Level: medium — Sprout Social, Inc. shows moderate risk based on this filing. The company operates in the competitive software services market, which presents ongoing challenges for growth and market share.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Sprout Social's competitive positioning and growth strategy.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date of submission)
• 96 — Public Document Count (Number of documents in the filing)
• 272404165 — IRS Number (Company's IRS identification number)

Key Players & Entities

• Sprout Social, Inc. (company) — Filer name
• 2024-02-23 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 7372 (industry_code) — Standard Industrial Classification
• DE (jurisdiction) — State of incorporation
• Chicago, IL (location) — Business address city and state
• 001-39156 (filing_id) — SEC file number
• SPT (ticker) — Ticker symbol

FAQ

Risk Factors

• Competition [medium — market]: The company faces intense competition in the social media management and analytics market, which could adversely affect its business.
• Dependence on Key Personnel [medium — operational]: The company's success depends on its ability to attract and retain highly qualified personnel, particularly in technical and management roles.
• Profitability [medium — financial]: The company has a history of net losses and may not achieve or maintain profitability in the future.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value per share SPT The Nasdaq Stoc
• $333.6 m — market strategy have led to revenue of $333.6 million, $253.8 million and $187.9 millio
• $253.8 million — have led to revenue of $333.6 million, $253.8 million and $187.9 million during the years end
• $187.9 million — e of $333.6 million, $253.8 million and $187.9 million during the years ended December 31, 202
• $385 million — o 2022. Additionally, we generated over $385 million in annualized recurring revenue, or ARR
• $66.4 m — etrics—ARR." We generated net losses of $66.4 million, $50.2 million and $28.7 million
• $50.2 million — generated net losses of $66.4 million, $50.2 million and $28.7 million during the years ende
• $28.7 million — ses of $66.4 million, $50.2 million and $28.7 million during the years ended December 31, 202

Filing Documents

• spt-20231231.htm (10-K) — 1875KB
• spt223202410-kex211sublist.htm (EX-21.1) — 8KB
• exhibit231sproutsocialcons.htm (EX-23.1) — 2KB
• exhibit311howard22024.htm (EX-31.1) — 9KB
• exhibit312delpreto22024.htm (EX-31.2) — 9KB
• exhibit321howard22024.htm (EX-32.1) — 5KB
• exhibit322delpreto22024.htm (EX-32.2) — 5KB
• spt2023incentivecompensati.htm (EX-97) — 42KB
• spt-20231231_g1.jpg (GRAPHIC) — 100KB
• 0001517375-24-000020.txt (&nbsp;) — 8884KB
• spt-20231231.xsd (EX-101.SCH) — 48KB
• spt-20231231_cal.xml (EX-101.CAL) — 100KB
• spt-20231231_def.xml (EX-101.DEF) — 325KB
• spt-20231231_lab.xml (EX-101.LAB) — 810KB
• spt-20231231_pre.xml (EX-101.PRE) — 538KB
• spt-20231231_htm.xml (XML) — 982KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 25 Item 1B. Unresolved Staff Comments 55 Item 1C. Cybersecurity 55 Item 2.

Properties

Properties 56 Item 3.

Legal Proceedings

Legal Proceedings 56 Item 4. Mine Safety Disclosures 56 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57 Item 6. [Reserved] 59 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 59 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 85 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 86 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 124 Item 9A.

Controls and Procedures

Controls and Procedures 124 Item 9B. Other Information 125 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 120 Part III Item 10. Directors, Executive Officers and Corporate Governance 126 Item 11.

Executive Compensation

Executive Compensation 126 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Item 13. Certain Relationships and Related Transactions and Director Independence 126 Item 14. Principal Accounting Fees and Services 127 Part IV Item 15. Exhibits and Financial Statement Schedules 128 Item 16 Form 10-K Summary 131

Signatures

Signatures 132 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Business

Item 1. Business Sprout Social — Powering the Evolution of Customer Experience With more than 5.0 billion global users consuming and sharing billions of posts per day, social media has fundamentally changed the customer experience. Social media has become mission-critical to the way organizations reach, engage and understand their target audience and customers. Sprout Social is a powerful, centralized platform that provides the critical business layer to unlock the massive commercial value of social media. We have made it increasingly easy to standardize on Sprout Social as the centralized system of record for social and to help customers maximize the value of this mission critical channel. Currently, more than 31,000 customers across more than 100 countries rely on our platform. Overview Sprout Social empowers businesses to tap into the power and opportunity presented by the shift to social communication. Social media reaches almost half of the world's population, influences buying behaviors and has changed the way the world communicates. Billions of users are sharing their interests, opinions and values with their social networks every day and are using social media to communicate with and about businesses, organizations and causes on an unprecedented scale. Virtually every aspect of business has been impacted by social media, from marketing, sales, commerce and public relations to customer service, product and strategy, creating a need for an entirely new category of software and an entirely new system of record. We offer our customers a centralized, secure and powerful platform that can scale horizontally across an organization to drive maximum business value. Introduced in 2011, our cloud software brings together social messaging, data and workflows in a unified system of record, intelligence and action. Operating across major networks, including X (formerly known as Twitter), Facebook, Instagram, TikTok, Pinterest, LinkedIn, Google, Reddit, Glassdoor and

View Full Filing

View this 10-K filing on SEC EDGAR