
Sprout Social (SPT) Stock Forecast & Price Target
Sprout Social (SPT) Analyst Ratings
Bulls say
Sprout Social Inc demonstrated solid financial performance with aggregate Annual Contract Value (ACV) reaching $14,651, reflecting a year-over-year increase of 19.1%, indicating sustained demand for its cloud software solutions. The company experienced a total revenue growth of 14.4% year-over-year, with subscription solutions revenue growing by 14.9%, surpassing estimates and showcasing the company's stability in a competitive market. Additionally, the increase in customers contributing over $10,000 in Annual Recurring Revenue (ARR) by 7% and steady improvements in gross retention highlight the firm’s strong position and potential for long-term growth.
Bears say
The negative outlook on Sprout Social's stock stems primarily from a noticeable decline in key performance metrics, such as a decrease in the dollar-based net retention rate to 104% in 2024 from 107% in the previous year. Additionally, the company's Q4 results indicated slowing cRPO bookings growth at 9% year-over-year and a revenue guidance of only 11% growth for FY25, falling short of consensus expectations of 14%. Furthermore, as management prioritizes flexibility for growth investments, projected non-GAAP operating margins are expected to be lower than previous quarters, raising concerns about potential operational challenges and customer retention.
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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