
Sprout Social (SPT) Stock Forecast & Price Target
Sprout Social (SPT) Analyst Ratings
Bulls say
Sprout Social Inc. has demonstrated substantial growth metrics with an aggregate Annual Contract Value (ACV) of $14,651, reflecting a 19.1% year-over-year increase, indicating strong demand for its subscription services. The total revenue witnessed a robust 14.4% growth year-over-year, with subscription solutions revenue rising by 14.9%, surpassing prior estimates and showcasing resilient customer demand. Additionally, the number of customers contributing over $10,000 in Annual Recurring Revenue (ARR) increased by 7%, underscoring the company's ability to enhance its enterprise segment and improve gross retention rates.
Bears say
Sprout Social Inc is facing a negative outlook as its dollar-based net retention rate decreased to 104% in 2024 from 107% the previous year, indicating a potential decline in customer loyalty. Furthermore, the company reported slowing cRPO bookings growth of only 9% year-over-year and provided FY25 revenue guidance of 11%, which falls short of the consensus expectation of 14%. Additionally, while non-GAAP operating margins for FY25 are projected at 9.0%, this represents a decline from the 11% margin observed in the most recent quarter, reflecting a strategic choice to invest in growth at the expense of short-term profitability.
This aggregate rating is based on analysts' research of Sprout Social and is not a guaranteed prediction by Public.com or investment advice.
Sprout Social (SPT) Analyst Forecast & Price Prediction
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