Sprout Social, Inc. announced its financial results for the third quarter ended September 30, 2024, reporting total revenue of $102.6 million, a 20% increase from $85.5 million in Q3 2023. The company's non-GAAP earnings per share (EPS) reached $0.13, surpassing analysts' consensus estimates.
Key customer metrics showed continued growth, with customers contributing over $50,000 in Annual Recurring Revenue (ARR) increasing to 1,610 from 1,252 in the prior year. The Average Contract Value (ACV) also grew by 26% year-over-year to $13,959, reflecting the company's focus on higher-value enterprise clients.
The company's profitability improved significantly, with non-GAAP operating margin reaching 7%, up from -1% in Q3 2023, and non-GAAP free cash flow margin at 9%, compared to -4% in the prior year. Remaining Performance Obligations (RPO) totaled $311.5 million, an increase from $228.7 million in Q3 2023.
For the fourth quarter of 2024, Sprout Social expects revenue between $106.3 million and $107.1 million, with non-GAAP operating income projected between $8.7 million and $9.5 million. Full-year 2024 revenue guidance was set between $405.1 million and $405.9 million, with non-GAAP net income per share expected to be between $0.46 and $0.47.
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