Here's What Key Metrics Tell Us About Sprout Social (SPT) Q1 Earnings

By Zacks Equity Research | May 08, 2025, 7:30 PM

Sprout Social (SPT) reported $109.29 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 12.9%. EPS of $0.22 for the same period compares to $0.10 a year ago.

The reported revenue represents a surprise of +1.59% over the Zacks Consensus Estimate of $107.58 million. With the consensus EPS estimate being $0.15, the EPS surprise was +46.67%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Sprout Social performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Number of customers contributing more than $10,000 in ARR: 9,381 versus 9,530 estimated by two analysts on average.
  • Revenue- Professional services and other: $0.61 million versus $0.89 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -38.8% change.
  • Revenue- Subscription: $108.68 million versus $107.25 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +13.5% change.
View all Key Company Metrics for Sprout Social here>>>

Shares of Sprout Social have returned -2.5% over the past month versus the Zacks S&P 500 composite's +11.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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