
Sprout Social (SPT) Stock Forecast & Price Target
Sprout Social (SPT) Analyst Ratings
Bulls say
Sprout Social Inc's strong financial performance is highlighted by a 14.4% year-over-year increase in total revenue, along with a notable 14.9% growth in subscription solutions revenue, indicating a solid demand for its cloud software offerings. The company's annual contract value (ACV) also showed a positive trend, reaching $14,651, which reflects a 19.1% year-over-year increase and suggests sustainable customer engagement. Additionally, the growth in customers contributing more than $10,000 in annual recurring revenue (ARR) by 7% demonstrates the firm’s expanding customer base and improving retention metrics, providing further support for a positive outlook on its financial performance.
Bears say
The financial outlook for Sprout Social, Inc. presents significant concerns, primarily driven by a decline in its dollar-based net retention rate to 104% in 2024 from 107% in 2023, indicating weakening customer loyalty. Additionally, the company's FY25 revenue guidance of 11% growth falls short of the consensus expectation of 14%, coupled with a slowdown in cRPO bookings growth to 9% year-over-year, suggesting choppiness in demand trends. Furthermore, with non-GAAP operating margins expected to decrease to 9.0%, down from 11% in the previous quarter, there are indications that the firm may be struggling to maintain its competitive positioning in the market while balancing growth investments.
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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