Sprout Social, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Sprout Social, Inc. filed its Q1 2024 10-Q, detailing financial positions and segment revenues.</b>

AI Summary

Sprout Social, Inc. (SPT) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Sprout Social, Inc. reported financial results for the quarter ended March 31, 2024. The filing includes data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key financial statement components such as Common Stock, Additional Paid-In Capital, Treasury Stock, Accumulated Other Comprehensive Income, and Retained Earnings are detailed for various periods. Subscription and Professional Services & Other revenue segments are reported for Q1 2024 and Q1 2023. Information regarding the company's line of credit is provided as of March 31, 2024, and December 31, 2023.

Why It Matters

For investors and stakeholders tracking Sprout Social, Inc., this filing contains several important signals. This filing provides a snapshot of Sprout Social's financial health and performance for the first quarter of 2024, crucial for investors assessing its current standing. The detailed breakdown of revenue segments and balance sheet items allows for a comparative analysis against previous periods, highlighting growth trends and financial stability.

Risk Assessment

Risk Level: low — Sprout Social, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures.

Analyst Insight

Monitor revenue growth in Subscription and Professional Services segments for Q1 2024 compared to Q1 2023.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-03 — Filing Date (Date the report was filed)
• 2023-03-31 — Prior Period End Date (Comparative period end date)
• 2023-12-31 — Previous Year End Date (Previous fiscal year end date)

Key Players & Entities

• Sprout Social, Inc. (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-03 (date) — Filing date
• 131 SOUTH DEARBORN STREET (address) — Business address
• CHICAGO (location) — Business address city
• IL (location) — Business address state
• 60603 (postal_code) — Business address zip
• 866-878-3231 (phone_number) — Business phone

FAQ

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q 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 St

Filing Documents

• spt-20240331.htm (10-Q) — 847KB
• sproutsocial-severancepl.htm (EX-10.1) — 51KB
• exhibit311jh202453.htm (EX-31.1) — 9KB
• exhibit312jdp202453.htm (EX-31.2) — 9KB
• exhibit321jh202453.htm (EX-32.1) — 5KB
• exhibit322jdp202453.htm (EX-32.2) — 5KB
• sproutsocial-severancepl001.jpg (GRAPHIC) — 253KB
• sproutsocial-severancepl002.jpg (GRAPHIC) — 241KB
• sproutsocial-severancepl003.jpg (GRAPHIC) — 242KB
• sproutsocial-severancepl004.jpg (GRAPHIC) — 290KB
• sproutsocial-severancepl005.jpg (GRAPHIC) — 308KB
• sproutsocial-severancepl006.jpg (GRAPHIC) — 317KB
• sproutsocial-severancepl007.jpg (GRAPHIC) — 317KB
• sproutsocial-severancepl008.jpg (GRAPHIC) — 342KB
• sproutsocial-severancepl009.jpg (GRAPHIC) — 289KB
• sproutsocial-severancepl010.jpg (GRAPHIC) — 161KB
• sproutsocial-severancepl011.jpg (GRAPHIC) — 209KB
• sproutsocial-severancepl012.jpg (GRAPHIC) — 179KB
• sproutsocial-severancepl013.jpg (GRAPHIC) — 61KB
• 0001517375-24-000070.txt (&nbsp;) — 8905KB
• spt-20240331.xsd (EX-101.SCH) — 26KB
• spt-20240331_cal.xml (EX-101.CAL) — 68KB
• spt-20240331_def.xml (EX-101.DEF) — 181KB
• spt-20240331_lab.xml (EX-101.LAB) — 380KB
• spt-20240331_pre.xml (EX-101.PRE) — 270KB
• spt-20240331_htm.xml (XML) — 442KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 9 Notes to Condensed Consolidated Financial Statements 10 1. Nature of Operations and Summary of Significant Accounting Policies 10 2. Revenue Recognition 11 3. Operating Leases 12 4. Income Taxes 13 5. Revolving Line of Credit 13 6. Incentive Stock Plan 15 7. Commitments and Contingencies 15 8. Segment and Geographic Data 16 9. Net Loss per Share 16 10. Fair Value Measurements 17 11. Business Combinations 19

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 41

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 42

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43

SIGNATURES

SIGNATURES 44 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Sprout Social, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) March 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 69,162 $ 49,760 Marketable securities 25,048 44,645 Accounts receivable, net of allowances of $ 1,820 and $ 2,177 at March 31, 2024 and December 31, 2023, respectively 50,417 63,489 Deferred commissions 14,783 27,725 Prepaid expenses and other assets 18,337 10,324 Total current assets 177,747 195,943 Marketable securities, noncurrent 994 3,699 Property and equipment, net 11,609 11,407 Deferred commissions, net of current portion 42,442 26,240 Operating lease, right-of-use assets 8,293 8,729 Goodwill 121,315 121,404 Intangible assets, net 26,495 28,065 Other assets, net 1,045 1,098 Total assets $ 389,940 $ 396,585 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 5,735 $ 6,933 Deferred revenue 146,358 140,536 Operating lease liabilities 3,971 3,948 Accrued wages and payroll related benefits 16,891 18,362 Accrued expenses and other 9,452 11,260 Total current liabilities 182,407 181,039 Revolving credit facility 45,000 55,000 Deferred revenue, net of current portion 747 920 Operating lease liabilities, net of current portion 14,085 15,083 Other noncurrent liabilities 351 351 Total liabilities 242,590 252,393 4 Sprout Social, Inc. Condensed Consolidated Balance Sheets (Unaudited) (cont'd) (in thousands, except share and per share data) March 31, 2024 December 31, 2023 Commitments and contingencies (Note 7) Stockholders' equity Class A common stock, par value $ 0.0001 per share; 1,000,000,000 shares authorized; 52,689,738 and 49,774,624 shares issued and outstanding, respectively, at March 31, 2024; 52,133,594 and 49,241,563 shares issued and outstanding, respectively, at December 31, 2023 4 4 Class B common stock, par value $ 0.0001 per share; 25,000,000 shares au

View Full Filing

View this 10-Q filing on SEC EDGAR