Q2 2024 Sprout Social Inc Earnings Call Transcript
Key Points
- Sprout Social Inc (SPT) reported a 25% year-over-year growth in net revenue for Q2 2024.
- Subscription revenue increased by 25% year-over-year, reaching $98.5 million.
- The company saw a 64% year-over-year increase in customers spending more than $150K in ACV.
- Sprout Social Inc (SPT) achieved a non-GAAP gross margin of 79.1%, up 100 basis points from the previous year.
- The company continues to be recognized as a leader in multiple categories by G2, including social customer service and social media analytics.
- The buying environment remains challenging, with longer sales cycles and new approval processes affecting decision-making.
- Operating cash flow in Q2 was $2.1 million, down from $6.3 million a year ago.
- Non-GAAP free cash flow decreased to $2.5 million from $6.0 million a year ago.
- Deferred revenue at the end of the quarter was $149.3 million, down from $290.0 million in Q1.
- The company is facing pressures on buyers, leading to lengthier evaluation cycles and increased steps in the decision-making process.
Thank you for standing by. My name is Meg, and I will be your conference operator today. At this time, I would like to welcome everyone to the 2024 Q2 Sprout Social Inc. conference call. (Operator Instructions)
I would now like to turn the conference over to Mr. Jason Russell, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and welcome to Sprout Social Second Quarter 2024 earnings call. We'll be discussing the results announced in our press release issued after market close today and have also released an updated investor presentation, which can be found on our website. With me are Sprout Social CEO, Justyn Howard; CFO, Joe del Prado and President, Ryan Barretto.
Today's call will contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward looking. These include, among others, statements
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