
Sprout Social (SPT) Stock Forecast & Price Target
Sprout Social (SPT) Analyst Ratings
Bulls say
Sprout Social Inc has demonstrated a strong performance in its financial metrics, with aggregate Annual Contract Value (ACV) rising to $14,651, reflecting a year-over-year increase of 19.1%. The company reported a total revenue increase of 14.4% year-over-year, fueled by a 14.9% growth in subscription solutions revenue, which has shown resilient demand despite market fluctuations. Additionally, the firm has seen a 7% increase in customers contributing over $10,000 in Annual Recurring Revenue (ARR), indicating sustained customer expansion and retention.
Bears say
Sprout Social Inc. is facing a negative outlook due to a decline in its dollar-based net retention rate, which dropped to 104% in 2024 from 107% in the previous year, indicating potential challenges in maintaining customer loyalty. Furthermore, the company's FY25 revenue guidance of 11% growth falls short of the consensus expectation of 14%, compounded by slowing cRPO bookings growth of 9% year-over-year. Additionally, projected non-GAAP operating margins are set to decrease to 9.0% as management opts for flexibility to invest in growth, which could pressure overall profitability and heighten operational risks.
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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