Sprout Social SPT Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 12:16 PM CDT 53 min read

Image source: The Motley Fool.

DATE

Thursday, May 7, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• President — Ryan Barretto

• Vice President of Investor Relations and Corporate Development — Alexander Kurtz

Full Conference Call Transcript

Ryan Barretto; and Vice President of Investor Relations and Corporate Development, Alex Kurtz. Today's telephone volition incorporate forward-looking statements, which are made pursuant to harmless harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements different than statements of humanities information are guardant looking. These include, among others, statements concerning our expected aboriginal fiscal performance, including our Q2 and 2026 outlook and concern plans and objectives and tin beryllium identified by words specified arsenic expect, anticipate, intend, plan, believe, seek, opportunity, people oregon will.

These statements bespeak our views arsenic of contiguous lone and should not beryllium relied upon arsenic representing our views astatine immoderate consequent date, and we bash not undertake immoderate work to update these statements. Forward-looking statements code matters that are taxable to risks and uncertainties that could origin existent results to disagree materially. For a treatment of the risks and different important factors that could impact our existent results, delight notation to our yearly study connected Form 10-K for the twelvemonth ended December 31, 2025, arsenic good arsenic our quarterly study connected Form 10-Q for the 4th ended March 31, 2026, to beryllium filed with the SEC.

During the call, we volition sermon non-GAAP fiscal measures, which are not prepared successful accordance with mostly accepted accounting principles. Definitions of these non-GAAP fiscal measures, on with reconciliations to the astir straight comparable GAAP fiscal measures are included successful our archetypal 4th net release, which has been furnished to the SEC and is disposable connected our website astatine investors.sproutsocial.com. Last quarter, we introduced a caller metric, approximated subscription gross publication for customers contributing $30,000 and supra successful ARR. This metric is intended to approximate the subscription gross of a subset of customers implicit humanities periods by utilizing their mean ARR arsenic a proxy, ensuing this quarterly estimation connected a trailing 12-month basis.

For brevity, we'll notation to this metric done the remainder of this telephone arsenic 300 supra subscription revenue. With that, fto maine crook the telephone implicit to Ryan. Ryan?

Ryan Barretto: Thank you, Lexi, and invited to our archetypal 4th net telephone for fiscal 2026. Sprout delivered different beardown 4th with gross of $121.5 million, representing 11.2% year-over-year growth, and we closed the 4th with non-GAAP operating borderline astatine 11.6%, up 16 ground points year-over-year. Current remaining show obligations grew 10% year-over-year to $281.7 cardinal and full remaining show obligations grew astir 10%. We are besides seeing customers making longer-term commitments to Sprout with multiyear contracts present representing astir fractional of our declaration premix up from astir 1/3 2 years ago. This reflects the increasing assurance successful Sprout arsenic a strategical level and supports our broader question with larger, much blase customers.