Revenue Growth and Operating Margin
Sprout Social reported first-quarter revenue of $109.3 million, representing a year-over-year growth of 13%. The company also achieved a record quarterly non-GAAP operating margin of 11.5%, up over 500 basis points from the previous year.
Strong Enterprise Wins
Sprout Social landed strategic wins with global brands like Palo Alto, NASCAR, Interscope Records, Avis Budget Car Rental, and Axos Bank. A notable seven-figure new business deal was closed with a Fortune 500 medical device manufacturer.
Influencer Marketing Product Rebrand and Enhancements
Sprout Social rebranded its influencer marketing platform to Sprout Social influencer marketing, with enhancements including AI-powered natural language discovery and customizable brand safety solutions.
Improved Free Cash Flow
The company generated a record $19.5 million in non-GAAP free cash flow during the quarter, up $8.1 million from the previous year, marking a 72% increase.
Customer Growth in High-Value Segments
There was a 22% growth in the number of customers contributing more than $50,000 in ARR, indicating strong growth in high-value customer segments.