Summary
Sprout Social closed fiscal 2024 with fourth-quarter revenue of $107.1 million, up 14.4% from the prior-year quarter. Full-year revenue reached $405.9 million, up 21.7% from fiscal 2023. Gross profit rose to $83.7 million in the quarter, up 15.2%, and full-year gross profit was $314.4 million, up 22.2%. Gross margin improved to 78.1% in the quarter from 77.6% a year earlier, a gain of 0.5 percentage points. For the full year, gross margin was 77.5%, up 0.3 percentage points from 77.1%.
The company still operates at a loss. Fourth-quarter operating loss was $13.7 million compared with an $18.2 million loss in the prior-year quarter, so the loss narrowed. Operating margin was negative 12.8%, up 6.7 percentage points from negative 19.5%. Full-year operating loss was $60.4 million versus $69.3 million, with operating margin of negative 14.9% compared with negative 20.8%. Net loss was $14.4 million in the quarter versus $20.1 million a year earlier, and full-year net loss was $62.0 million compared with $66.4 million. Diluted loss per share for the full year was $1.09, an improvement from a loss of $1.19 in fiscal 2023. On a non-GAAP basis, fourth-quarter operating income was $11.4 million compared with $1.7 million, non-GAAP net income was $10.7 million compared with $1.0 million, and non-GAAP net income per share was $0.19 compared with $0.02. Full-year non-GAAP operating income was $30.2 million, non-GAAP net income was $28.6 million, and non-GAAP net income per share was $0.50.
Cash generation improved. Fourth-quarter operating cash flow was $4.1 million compared with negative $2.6 million in the prior-year quarter. Full-year operating cash flow was $26.3 million compared with $6.5 million in fiscal 2023. Capital expenditures were $0.9 million in the quarter and $3.0 million for the full year, both up from the prior-year periods. Non-GAAP free cash flow was $6.6 million in the quarter compared with negative $0.3 million, and $29.7 million for the full year. Deferred revenue stood at $179.7 million at December 31, 2024. RPO was $351.5 million, up 28% year over year, and cRPO was $249.4 million, up 26%. Customers contributing more than $10,000 in ARR reached 9,327, up 7%, while customers contributing more than $50,000 in ARR reached 1,718, up 23%. Dollar-based net retention was 104% for 2024, down from 107% in 2023, and net retention excluding SMB customers was 108%, down from 111%.
Management's outlook covers total revenue, non-GAAP operating income and non-GAAP net income per share. For the first quarter of 2025, guidance is $107.2 million to $108.0 million, non-GAAP operating income of $8.5 million to $9.5 million, and non-GAAP net income per share of $0.14 to $0.16 on about 58.5 million weighted-average shares. For the full year 2025, the ranges are $448.1 million to $453.1 million, $38.2 million to $43.2 million, and $0.65 to $0.74 on about 59.3 million weighted-average shares. The company does not reconcile these non-GAAP figures to comparable GAAP measures, citing the unavailability of reliable estimates for certain items.
Risks remain. Macroeconomic uncertainty, measured buying behavior and longer sales cycles, pricing pressure, and a decline in total customer count all weigh on the story even as higher-tier customers grow. The 10-K also flags cybersecurity and data privacy rules, service interruptions at social media platforms or API providers, acquisition integration, credit facility covenants, and legal proceedings. Sprout Social served approximately 30,000 customers across more than 100 countries and completed a November 2024 restructuring plan that cut roughly 50 roles in research and development. Customer wins during the quarter included Under Armour, ESPN, Rocket Mortgage, Klaviyo, Carhartt, Campbell, and Cushman Wakefield.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $107.1M | $102.6M | +4.3% | $93.6M | +14.4% |
| Gross profit | $83.7M | $79.4M | +5.4% | $72.6M | +15.2% |
| Gross margin | 78.1% | 77.4% | +0.8 pp | 77.6% | +0.5 pp |
| Research & development | $27.6M | $26.3M | +5.2% | $22.7M | +21.9% |
| Sales & marketing | $45.9M | $47.5M | -3.4% | $47.4M | -3.1% |
| General & administrative | $23.8M | $22.5M | +5.9% | $20.8M | +14.6% |
| Total operating expenses | $97.4M | $96.3M | +1.1% | $90.8M | +7.2% |
| Operating income (loss) | -$13.7M | -$16.9M | +19.0% | -$18.2M | +24.9% |
| Operating margin | -12.8% | -16.4% | +3.7 pp | -19.5% | +6.7 pp |
| Net income (loss) | -$14.4M | -$17.1M | +15.6% | -$20.1M | +28.2% |
| Net margin | -13.5% | -16.6% | +3.2 pp | -21.4% | +8.0 pp |
| Diluted EPS | -$0.25 | -$0.30 | +$0.05 | -$0.36 | +$0.11 |
| Customers | 30,000 | — | — | 31,000 | -3.2% |
| Net retention rate | 107.0% | — | — | 109.0% | -2.0 pp |
Risks
Revenue growth slowed to 22% in 2024 from 31% in 2023, and the company warns historical growth rates may not be indicative of future growth. MD&A attributes slower growth to more measured buying behavior and lengthening sales cycles and expects these negative trends may emerge or recur.
Dollar-based net retention rate declined to 104% for 2024 from 107% in 2023, and excluding SMB customers it declined to 108% from 111%. The company also notes total customer count decreased while customers contributing more than $10,000 and $50,000 in ARR grew, and price increases may cause total customers to continue to decrease.
As sales efforts target larger enterprise customers, the sales cycle has become longer and more expensive, and the company may face increased pricing pressure and compliance challenges. MD&A states macroeconomic impacts have contributed to more measured buying behavior and lengthening average sales cycles.
The risk factors substantially expand AI risks, warning that AI advances may enable alternative competitive services, reduce seats used by customers, or make Sprout Social's services obsolete. Failure to invest in AI in a timely, effective, and compliant manner could place the company at a competitive disadvantage.
The company depends on third-party APIs, including social media networks, and specifically notes it is a member of the X Official Partner Program with no assurance X will maintain the program or its terms, including pricing. Changes or limits to API access could adversely affect platform functionality and results of operations.
The Credit Agreement includes a minimum recurring revenue growth covenant requiring trailing four-quarter recurring revenue growth of not less than 115% of the prior-year period. As of December 31, 2024, $25 million remains outstanding, and substantially all assets are pledged as collateral.
The company has federal government customers that may be impacted by budget cuts implemented by the incoming administration, and it cannot predict the impact on their spending.
The company completed acquisitions of Repustate in January 2023 and Tagger Media in August 2023, and risks include integration difficulties, diversion of management attention, unknown liabilities, and failure to realize expected benefits.
SaaS KPIs
All quarters →Total Customers
Non-GAAP Operating Income
Total remaining performance obligations (RPO)
Current remaining performance obligations (cRPO)
Non-GAAP free cash flow
Number of customers contributing more than $10,000 in ARR
Number of customers contributing more than $50,000 in ARR
Summary, forecast, risks and KPIs are extracted from Sprout Social, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.