Sprout Social Q1 Revenue Rises 11% to $121.5M, Launches $50M Buyback
Sprout Social posted Q1 revenue of $121.5 million, up 11% year-over-year, and non-GAAP operating income of $14.1 million, up from $12.5 million. It launched a $50 million share repurchase plan and expanded its $30,000+ ARR customer count 12% to 3,875.
1. First-Quarter Financial Highlights
Sprout Social generated Q1 revenue of $121.5 million, an 11% increase year-over-year, while total remaining performance obligations reached $395.3 million (+10%) and current RPO hit $281.7 million (+10%). Non-GAAP operating income climbed to $14.1 million from $12.5 million, and GAAP operating loss narrowed to $5.8 million.
2. Customer Cohort Expansion
The number of customers contributing $30,000 or more in ARR rose 12% to 3,875, while those contributing $50,000 or more in ARR increased 18% to 2,085. The $30K ARR cohort drove approximately $280.1 million in TTM subscription revenue, representing 60.3% of total subscription revenue.
3. Share Repurchase Program
Sprout Social introduced its first-ever share repurchase program with an initial $50 million authorization, underscoring management’s disciplined capital allocation and confidence in the company’s cash flow generation.
4. Liquidity, Cash Flow and Outlook
Cash and equivalents totaled $111.6 million as of March 31, with non-GAAP free cash flow of $24.7 million for the quarter. The company guides Q2 revenue between $121.7 million and $122.5 million and full-year revenue of $492.5 million to $495.5 million, targeting a 15% non-GAAP operating margin by Q4 and a 30% Rule of 40 result.