Sprout Social (SPT) 10-Q 2 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Jul. 26, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-39156
Entity Registrant Name	SPROUT SOCIAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2404165
Entity Address, Address Line One	131 South Dearborn St.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60603
City Area Code	(866)
Local Phone Number	878-3231
Title of 12(b) Security	Class A Common Stock, $0.0001 par value per share
Trading Symbol	SPT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001517375
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		50,419,689
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6,660,638

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 80,873	$ 49,760
Marketable securities	12,333	44,645
Accounts receivable, net of allowances of $2,232 and $2,177 at June 30, 2024 and December 31, 2023, respectively	58,614	63,489
Deferred commissions	16,196	27,725
Prepaid expenses and other assets	15,067	10,324
Total current assets	183,083	195,943
Marketable securities, noncurrent	0	3,699
Property and equipment, net	11,236	11,407
Deferred commissions, net of current portion	44,190	26,240
Operating lease, right-of-use assets	7,844	8,729
Goodwill	121,315	121,404
Intangible assets, net	24,941	28,065
Other assets, net	992	1,098
Total assets	393,601	396,585
Current liabilities
Accounts payable	9,799	6,933
Deferred revenue	148,323	140,536
Operating lease liabilities	4,003	3,948
Accrued wages and payroll related benefits	15,407	18,362
Accrued expenses and other	9,584	11,260
Total current liabilities	187,116	181,039
Deferred revenue, net of current portion	940	920
Operating lease liabilities, net of current portion	13,071	15,083
Other Liabilities, Noncurrent	351	351
Total liabilities	241,478	252,393
Commitments and contingencies (Note 7)
Stockholders’ equity
Additional paid-in capital	511,887	471,789
Treasury stock, at cost	(36,861)	(35,113)
Accumulated other comprehensive loss	(29)	(77)
Accumulated deficit	(322,879)	(292,412)
Total stockholders’ equity	152,123	144,192
Total liabilities and stockholders’ equity	393,601	396,585
Line of Credit
Current liabilities
Revolving credit facility	40,000	55,000
Class A common stock
Stockholders’ equity
Common stock	4	4
Class B common stock
Stockholders’ equity
Common stock	$ 1	$ 1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Allowance for doubtful accounts	$ 2,232	$ 2,177
Class A common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized value (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	53,322,896	52,133,594
Common stock, shares outstanding (in shares)	50,399,375	49,241,563
Class B common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized value (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	6,887,582	7,201,140
Common stock, shares outstanding (in shares)	6,680,638	6,994,196

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Total revenue	$ 99,396	$ 79,315	$ 196,180	$ 154,527
Cost of revenue
Total cost of revenue	22,402	18,234	44,830	35,109
Gross profit	76,994	61,081	151,350	119,418
Operating expenses
Research and development	25,126	18,956	48,895	36,832
Sales and marketing	46,194	39,307	90,734	76,212
General and administrative	22,187	17,735	41,521	33,224
Total operating expenses	93,507	75,998	181,150	146,268
Loss from operations	(16,513)	(14,917)	(29,800)	(26,850)
Interest expense	(972)	(35)	(2,018)	(63)
Interest income	1,053	2,140	2,088	4,160
Other (expense) income, net	(257)	(148)	(663)	(357)
Loss before income taxes	(16,689)	(12,960)	(30,393)	(23,110)
Income tax expense	203	125	74	227
Net loss	$ (16,892)	$ (13,085)	$ (30,467)	$ (23,337)
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.30)	$ (0.24)	$ (0.54)	$ (0.42)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares)	56,699,148	55,499,399	56,521,490	55,331,151
Subscription
Revenue
Total revenue	$ 98,498	$ 78,690	$ 194,287	$ 153,432
Cost of revenue
Total cost of revenue	22,078	17,972	44,283	34,605
Professional services and other
Revenue
Total revenue	898	625	1,893	1,095
Cost of revenue
Total cost of revenue	$ 324	$ 262	$ 547	$ 504

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net loss	$ (16,892)	$ (13,085)	$ (30,467)	$ (23,337)
Net unrealized gain (loss) on available-for-sale securities, net of tax	19	(103)	48	(25)
Comprehensive loss	$ (16,873)	$ (13,188)	$ (30,419)	$ (23,362)

Condensed Consolidated Statem_3

Condensed Consolidated Statements Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Voting Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated other comprehensive loss
Beginning balance (in shares) at Dec. 31, 2022		55,023,343		3,057,448
Beginning balance at Dec. 31, 2022	$ 142,337	$ 5	$ 401,419	$ (32,733)	$ (225,985)	$ (369)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		30,000
Exercise of stock options	29		29
Stock-based compensation	30,080		30,080
Issuance of common stock from equity award settlement (in shares)		640,205
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				23,565
Taxes paid related to net share settlement of equity awards	(1,369)			$ (1,369)
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,427		1,427
Stock Issued During Period, Shares, Employee Stock Purchase Plans		36,360
Other Comprehensive Income (Loss), Net of Tax	(25)					(25)
Net loss	(23,337)				(23,337)
Ending balance (in shares) at Jun. 30, 2023		55,729,908		3,081,013
Ending balance at Jun. 30, 2023	149,142	$ 5	432,955	$ (34,102)	(249,322)	(394)
Beginning balance (in shares) at Mar. 31, 2023		55,376,548		3,074,749
Beginning balance at Mar. 31, 2023	144,768	$ 5	415,123	$ (33,832)	(236,237)	(291)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		30,000
Exercise of stock options	29		29
Stock-based compensation	16,376		16,376
Issuance of common stock from equity award settlement (in shares)		287,000
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				6,264
Taxes paid related to net share settlement of equity awards	(270)			$ 270
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,427		1,427
Stock Issued During Period, Shares, Employee Stock Purchase Plans		36,360
Other Comprehensive Income (Loss), Net of Tax	(103)					(103)
Net loss	(13,085)				(13,085)
Ending balance (in shares) at Jun. 30, 2023		55,729,908		3,081,013
Ending balance at Jun. 30, 2023	149,142	$ 5	432,955	$ (34,102)	(249,322)	(394)
Beginning balance (in shares) at Dec. 31, 2023		56,235,759		3,098,975
Beginning balance at Dec. 31, 2023	144,192	$ 5	471,789	$ (35,113)	(292,412)	(77)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		25,000
Exercise of stock options	27		27
Stock-based compensation	38,833		38,833
Issuance of common stock from equity award settlement (in shares)		778,447
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				31,490
Taxes paid related to net share settlement of equity awards	(1,748)			$ (1,748)
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,238		1,238
Stock Issued During Period, Shares, Employee Stock Purchase Plans		40,807
Other Comprehensive Income (Loss), Net of Tax	48					48
Net loss	(30,467)				(30,467)
Ending balance (in shares) at Jun. 30, 2024		57,080,013		3,130,465
Ending balance at Jun. 30, 2024	152,123	$ 5	511,887	$ (36,861)	(322,879)	(29)
Beginning balance (in shares) at Mar. 31, 2024		56,537,262		3,122,058
Beginning balance at Mar. 31, 2024	147,350	$ 5	489,969	$ (36,589)	(305,987)	(48)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	27
Stock-based compensation	20,653		20,653
Issuance of common stock from equity award settlement (in shares)		476,944
Issuance of common stock from equity award settlement	0
Taxes paid related to net share settlement of equity awards (in shares)				8,407
Taxes paid related to net share settlement of equity awards	(272)			$ 272
Stock Issued During Period, Value, Employee Stock Purchase Plan	1,238		1,238
Stock Issued During Period, Shares, Employee Stock Purchase Plans		40,807
Other Comprehensive Income (Loss), Net of Tax	19					19
Net loss	(16,892)				(16,892)
Ending balance (in shares) at Jun. 30, 2024		57,080,013		3,130,465
Ending balance at Jun. 30, 2024	$ 152,123	$ 5	$ 511,887	$ (36,861)	$ (322,879)	$ (29)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (30,467)	$ (23,337)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software	1,866	1,512
Amortization of line of credit issuance costs	103	0
Amortization of premium (accretion of discount) on marketable securities	(325)	(1,889)
Amortization of acquired intangible assets	3,124	738
Amortization of deferred commissions	7,411	12,171
Amortization of right-of-use operating lease asset	885	723
Stock-based compensation expense	38,664	30,032
Provision for accounts receivable allowances	741	860
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable	4,134	(7,196)
Prepaid expenses and other current assets	(4,713)	(4,133)
Deferred commissions	(13,832)	(16,560)
Accounts payable and accrued expenses	(213)	3,003
Deferred revenue	7,806	20,364
Lease liabilities	(1,957)	(1,710)
Net cash provided by operating activities	13,227	14,578
Cash flows from investing activities
Expenditures for property and equipment	(1,585)	(644)
Payments for business acquisition, net of cash acquired	(1,409)	(6,432)
Purchases of marketable securities	0	(63,085)
Proceeds from maturity of marketable securities	36,385	47,252
Proceeds from sale of marketable securities	0	5,538
Net cash provided by (used in) investing activities	33,391	(17,371)
Cash flows from financing activities
Repayments of line of credit	(15,000)	0
Proceeds from exercise of stock options	27	29
Proceeds from employee stock purchase plan	1,238	1,427
Employee taxes paid related to the net share settlement of stock-based awards	(1,748)	(1,369)
Net cash (used in) provided by financing activities	(15,483)	87
Net increase (decrease) in cash, cash equivalents and restricted cash	31,135	(2,706)
Cash, cash equivalents and restricted cash
Beginning of period	53,695	79,917
Cash and cash equivalents	80,873	74,365
Restricted Cash	3,957	2,846
End of period	$ 84,830	$ 77,211

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Sprout Social, Inc. (“Sprout Social” or the “Company”), a Delaware corporation, began operating on April 21, 2010 to design, develop and operate a web-based comprehensive social media management tool enabling companies to manage and measure their online presence. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. The Company’s fiscal year end is December 31. The Company’s customers are primarily located throughout the United States, and a portion of customers are located in foreign countries. The Company is headquartered in Chicago, Illinois. Principles of Consolidation and Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2023, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of August 2, 2024, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 1 - “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. There have been no significant changes to these policies during the six months ended June 30, 2024, except as noted below. Sales Commissions Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit. The Company has historically estimated such period of benefit to be three years. On an annual basis, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors. Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the condensed consolidated financial statements. For the three and six months ended June 30, 2024, the change in amortization period resulted in a $3.9 million and $8.1 million reduction to sales and marketing expense, respectively, or an increase of $0.07 and $0.14 per share basic and diluted, respectively. The effects of this change in estimate were calculated based on the carrying value of deferred commissions as of December 31, 2023.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region in Note 8 - “Segment and Geographic Data” of the Notes to the Financial Statements (Part I, Item 1 of this Quarterly Report) and based on the subscription versus professional services and other classification on the condensed consolidated statements of operations, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size. The amount of revenue recognized during the three months ended June 30, 2024 and 2023 that was included in deferred revenue at the beginning of each period was $67.4 million and $50.2 million, respectively. The amount of revenue recognized during the six months ended June 30, 2024 and 2023 that was included in deferred revenue at the beginning of each period was $101.9 million and $71.1 million, respectively. As of June 30, 2024, including amounts already invoiced and amounts contracted but not yet invoiced, $295.1 million of revenue is expected to be recognized from remaining performance obligations, of which 72% is expected to be recognized in the next 12 months, with the remainder thereafter.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Operating Leases	Operating Leases The Company has operating lease agreements for offices in Chicago, Illinois; Seattle, Washington; Santa Monica, California; and Dublin, Ireland. The Chicago lease expires in January 2028, the Seattle lease expires in January 2031, the Santa Monica lease expires in January 2025, and the Dublin lease expires in June 2025. These operating leases require escalating monthly rental payments ranging from approximately $14,000 to $280,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above. The following table provides a summary of operating lease assets and liabilities as of June 30, 2024 (in thousands): Assets Operating lease right-of-use assets $ 7,844 Liabilities Operating lease liabilities 4,003 Operating lease liabilities, non-current 13,071 Total operating lease liabilities $ 17,074 The following table provides information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 686 $ 649 $ 1,374 $ 1,297 Variable lease expense 856 893 1,712 1,786 Within the condensed consolidated statements of operations, operating and variable lease expense are recorded in General and administrative expenses. Cash payments related to operating leases for the six months ended June 30, 2024 and 2023 were $4.1 million and $4.1 million, respectively. As of June 30, 2024, the weighted-average remaining lease term is 4.5 years and the weighted-average discount rate is 5.5%. Remaining maturities of operating lease liabilities as of June 30, 2024 are as follows (in thousands): Years ending December 31, 2024 $ 2,436 2025 4,494 2026 4,298 2027 4,392 2028 1,277 Thereafter 2,326 Total future minimum lease payments $ 19,223 Less: imputed interest (2,149) Total operating lease liabilities $ 17,074

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for interim periods is generally determined using an estimate of the Company’s annual effective tax rate, excluding jurisdictions for which no tax benefit can be recognized due to valuation allowances. The Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to a valuation allowance related to the Company’s federal and state deferred tax assets. There is no provision for domestic income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. For the six months ended June 30, 2024, the Company recognized an immaterial provision related to foreign income taxes. The Company assesses all available positive and negative evidence to evaluate the realizability of its deferred tax assets and whether or not a valuation allowance is necessary. The Company’s three-year cumulative loss position was significant negative evidence in assessing the need for a valuation allowance. The weight given to positive and negative evidence is commensurate with the extent such evidence may be objectively verified. Given the weight of objectively verifiable historical losses from operations, the Company has recorded a full valuation allowance on its deferred tax assets. The Company may be able to reverse the valuation allowance when sufficient positive evidence exists to support the reversal of the valuation allowance.

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Revolving Line of Credit	Revolving Line of Credit On August 1, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the banks and other financial institutions or entities party thereto as lenders and MUFG Bank, LTD. as administrative agent and collateral agent. The Credit Agreement provides for a $100 million senior secured revolving credit facility (the “Facility”), maturing on August 1, 2028. Borrowings under the Facility may be used to finance acquisitions and other investments permitted under the terms of the Credit Agreement, to pay related fees and expenses and for general corporate purposes. At June 30, 2024, the Company had an outstanding balance of $40.0 million under the Facility. Borrowings under the Facility may be designated as SOFR Loans or ABR Loans (each as defined in the Credit Agreement), subject to certain terms and conditions under the Credit Agreement, and bear interest at a rate of either (i) SOFR (subject to a 1.0% floor), plus 0.10%, plus a margin ranging from 2.75% to 3.25% based on the Company’s liquidity or (ii) ABR (subject to a 2.0% floor) plus a margin ranging from 1.75% to 2.25% based on the Company’s liquidity. The Facility also includes a quarterly commitment fee on the unused portion of the Facility of 0.30% or 0.35% based on the Company’s liquidity. For the six months ended June 30, 2024, the borrowings under the Facility were designated as SOFR Loans and the weighted average interest rate in effect for the outstanding balance was approximately 8.18%. Debt issuance costs associated with the Facility were recorded to Other assets, net within the condensed consolidated balance sheets and are being amortized as interest expense on a straight-line basis over the term of the Facility.

Incentive Stock Plan

Incentive Stock Plan	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Incentive Stock Plan	Incentive Stock Plan Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 906 $ 857 $ 1,831 $ 1,358 Research and development 6,036 4,327 11,486 7,929 Sales and marketing 8,189 7,206 15,565 13,776 General and administrative 5,467 3,986 9,782 6,969 Total stock-based compensation $ 20,598 $ 16,376 $ 38,664 $ 30,032

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company has non-cancellable minimum guaranteed purchase commitments for primarily data and services. Material contractual commitments as of June 30, 2024 that are not disclosed elsewhere are as follows (in thousands): Years ending December 31, 2024 $ 4,546 2025 6,498 2026 2,366 2027 378 2028 — Thereafter — Total contractual obligations $ 13,788 Legal Matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. Beginning on May 13, 2024, the Company and certain of its executives were named in two putative securities fraud class action cases filed in the United States District Court for the Northern District of Illinois asserting claims under Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5. The first action, captioned Richard Munch v. Sprout Social, Inc., et al. (the “Munch Action”), was filed on May 13, 2024 and alleges that the defendants made false or misleading statements and omissions of fact relating to the Company’s business, operations and prospects, including (i) purported integration challenges arising from the Company’s August 2023 acquisition of Tagger Media, Inc., (ii) the Company’s ability to service (and the viability of its strategic plan to focus on) the enterprise market, and (iii) as a result, the Company’s financial guidance. The plaintiff in the Munch Action seeks damages and costs on behalf of a putative class of Company stockholders and alleges a class period beginning on November 3, 2023 and ending on May 2, 2024. The second case, captioned City of Hollywood Police Officers’ Retirement System v. Sprout Social, Inc., et al. (the “City of Hollywood Action” and, together with the Munch Action, the “Securities Actions”) was filed on July 2, 2024. It asserts claims under the same statutory provisions based on substantially similar allegations of misconduct as the Munch Action, but alleges a class period beginning on November 3, 2021 and ending on May 2, 2024. On July 12, 2024, three purported Company stockholders, including the named plaintiffs in the Securities Actions, filed motions to consolidate the Securities Actions and for appointment as lead plaintiff under the Private Securities Litigation Reform Act of 1995. Those motions remain pending. Based on a scheduling order entered by the Court in the first-filed Munch Action, the appointed lead plaintiff will have sixty days following a ruling on these motions to file a consolidated amended and/or consolidated complaint, after which Defendants will have sixty days to respond. The Company intends to vigorously defend against the claims asserted in the Securities Actions. The outcomes of these actions are subject to inherent uncertainties, and the actual defense and disposition costs will depend upon many unknown factors. The Company could be forced to expend significant resources in the defense of these actions and may not prevail. The Company currently is not able to estimate the possible cost from these matters, as these actions are currently at an early stage, and the Company cannot be certain how long it may take to resolve these actions or the possible amount of any damages that the Company may be required to pay. Such amounts could be material to the Company’s financial statements. The Company has not established any reserve for any potential liability relating to these actions. It is possible that the Company could, in the future, incur judgments or enter into settlements of claims for monetary damages. Indemnification In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors, and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. There were no material obligations under such indemnification agreements as of and for the period ended June 30, 2024.

Segment and Geographic Data

Segment and Geographic Data	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segment and Geographic Data	Segment and Geographic Data The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis. As the Company operates as one operating segment, all required segment financial information is found in the condensed consolidated financial statements. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of June 30, 2024 and December 31, 2023, there were no significant long-lived assets held by entities outside of the United States. Revenue by geographical region is determined by location of the Company’s customers. Revenue from customers outside of the United States was approximately 27% and 28% for each of the six months ended June 30, 2024 and 2023, respectively. Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Americas $ 78,830 $ 62,312 $ 155,500 $ 121,423 EMEA 15,646 13,054 31,017 25,554 Asia Pacific 4,920 3,949 9,663 7,550 Total $ 99,396 $ 79,315 $ 196,180 $ 154,527

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of outstanding shares of common stock for each period. Diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options and restricted stock units. Because the Company incurred net losses each period, the basic and diluted calculations are the same. Basic and diluted net loss per share are the same for each class of common stock, as both Class A and Class B stockholders are entitled to the same liquidation and dividend rights. The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net loss attributable to common shareholders $ (16,892) $ (13,085) $ (30,467) $ (23,337) Weighted average common shares outstanding 56,699,148 55,499,399 56,521,490 55,331,151 Net loss per share, basic and diluted $ (0.30) $ (0.24) $ (0.54) $ (0.42) The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. June 30, 2024 2023 Stock options outstanding 2,010 27,010 RSUs outstanding 4,763,867 3,651,744 Total potentially dilutive shares 4,765,877 3,678,754

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 11,535 $ — $ 11,535 U.S. agency securities — 798 — 798 Total assets $ — $ 12,333 $ — $ 12,333 December 31, 2023 Level 1 Level 2 Level 3 Total Marketable Securities: Commercial paper $ — $ 33,287 $ — $ 33,287 Corporate bonds — 9,906 — 9,906 U.S. Treasury securities — 495 — 495 U.S. agency securities — 4,289 — 4,289 Asset-backed securities — 367 — 367 Total assets $ — $ 48,344 $ — $ 48,344 Marketable securities are classified within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market. The carrying amounts of certain financial instruments, including cash held in banks, cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. For the periods presented, the Company held investment-grade marketable securities which were accounted for as available-for-sale securities. As of June 30, 2024 and December 31, 2023, there was not a significant difference between the amortized cost and fair value of these securities. The gross unrealized gains and losses associated with these securities were immaterial in the periods presented. The following table classifies our marketable securities by contractual maturity (in thousands): June 30, 2024 December 31, 2023 Due in one year or less $ 12,333 $ 44,645 Due after one year and within two years — 3,699 Total $ 12,333 $ 48,344

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Business Combinations Tagger Media, Inc. On August 2, 2023, the Company completed its acquisition of all the outstanding equity of Tagger, an influencer marketing and social intelligence platform. The Company acquired Tagger in order to expand into the influencer marketing category. Tagger’s platform enables marketers to discover influencers, plan and manage campaigns, analyze competitor strategies, report on trends and measure return on investment. The Company acquired Tagger for a total final purchase consideration of $144 million in cash, which incorporates the impact of various customary adjustments such as working capital, cash and indebtedness. The Company funded the purchase consideration with a combination of cash on hand and $75 million borrowed under the Facility further described in Note 5 - “Revolving Line of Credit” of the Notes to the Financial Statements (Part I, Item 1 of this Quarterly Report). The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expanded market opportunities from integrating the acquired developed technologies with the Company’s offerings. The goodwill is not deductible for income tax purposes. The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The allocation of fair value of purchase consideration was finalized in the second quarter of 2024. The following table summarizes the fair values of assets acq uired and liabilities assumed as of the date of acquisition (in thousands): August 2, 2023 Cash and cash equivalents $ 4,648 Accounts receivable 2,979 Other current and noncurrent assets 932 Intangible assets 27,800 Accounts payable, accrued expenses and other liabilities (1,758) Deferred revenue (3,243) Net assets acquired, excluding Goodwill 31,358 Goodwill 112,405 Total consideration $ 143,763 Cash and cash equivalents acquired (4,648) Cash paid for acquisition of business, net of cash acquired $ 139,115 The Company engaged a third-party valuation expert to aid its analysis of the acquired identifiable intangible assets. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation expert for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party. The fair values of the acquired technology and the trademark identified intangible assets were determined utilizing the relief from royalty method under the income approach. The fair values of the customer relationships were valued using the multi-period excess-earnings method. The Company applied judgment which involved the use of assumptions with respect to revenue growth rates, customer attrition rate, discount rate, royalty rate, obsolescence rate and total operating expenses. Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date: Fair Value Expected Useful Life Customer Relationships $ 12,400 7 years Acquired Technology 14,100 5 years Trademark 1,300 5 years $ 27,800 The Company has included the financial results of Tagger in its condensed consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Tagger have not been presented as the effect of this acquisition was not material to the Company’s financial results. Repustate, Inc. On January 19, 2023, the Company completed the acquisition of all the outstanding equity of Repustate, Inc. The acquisition has increased the Company’s power, breadth and automation of social listening, messaging, and customer care capabilities with added sentiment analysis, natural language processing (NLP) and artificial-intelligence (AI). The total final purchase consideration for the acquisition was $8.3 million, consisting of approximately $6.8 million in cash paid at the closing of the acquisition and a holdback of $1.5 million in cash to be paid as purchase consideration after the one-year anniversary of the closing of the acquisition, assuming no claims by the Company against the holdback amount for post-closing purchase price adjustments or indemnification matters. The purchase price holdback was paid in full in January 2024. The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expected post-acquisition synergies from integrating the technology into Sprout’s platform. The goodwill is not deductible for income tax purposes. The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The allocation of fair value of purchase consideration was finalized in the fourth quarter of 2023. The following table summarizes the fair values of assets acq uired and liabilities assumed as of the date of acquisition (in thousands): January 19, 2023 Cash and cash equivalents $ 366 Intangible assets 1,800 Deferred tax liability (477) Other net tangible assets and liabilities assumed (4) Net assets acquired, excluding Goodwill 1,685 Goodwill 6,611 Total consideration $ 8,296 Deferred consideration related to holdback (1,498) Cash and cash equivalents acquired (366) Cash paid for acquisition of business, net of cash acquired $ 6,432 The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date: Fair Value Expected Useful Life Customer Relationships $ 200 1 year Acquired Technology 1,600 5 years $ 1,800 The Company has included the financial results of Repustate in its condensed consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Repustate have not been presented as the effect of this acquisition was not material to the Company’s financial results.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (16,892)	$ (13,085)	$ (30,467)	$ (23,337)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2023, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.
Principles of Consolidation	All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of August 2, 2024, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates.
Sales Commissions	Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit. The Company has historically estimated such period of benefit to be three years. On an annual basis, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors. Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the condensed consolidated financial statements. For the three and six months ended June 30, 2024, the change in amortization period resulted in a $3.9 million and $8.1 million reduction to sales and marketing expense, respectively, or an increase of $0.07 and $0.14 per share basic and diluted, respectively. The effects of this change in estimate were calculated based on the carrying value of deferred commissions as of December 31, 2023.
Deferred Revenue	Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size.

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Summary of operating lease assets and liabilities	The following table provides a summary of operating lease assets and liabilities as of June 30, 2024 (in thousands): Assets Operating lease right-of-use assets $ 7,844 Liabilities Operating lease liabilities 4,003 Operating lease liabilities, non-current 13,071 Total operating lease liabilities $ 17,074
Schedule of lease cost	The following table provides information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 686 $ 649 $ 1,374 $ 1,297 Variable lease expense 856 893 1,712 1,786
Schedule of remaining maturities of operating lease liabilities	Remaining maturities of operating lease liabilities as of June 30, 2024 are as follows (in thousands): Years ending December 31, 2024 $ 2,436 2025 4,494 2026 4,298 2027 4,392 2028 1,277 Thereafter 2,326 Total future minimum lease payments $ 19,223 Less: imputed interest (2,149) Total operating lease liabilities $ 17,074

Incentive Stock Plan (Tables)

Incentive Stock Plan (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of stock-based compensation expense	Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 906 $ 857 $ 1,831 $ 1,358 Research and development 6,036 4,327 11,486 7,929 Sales and marketing 8,189 7,206 15,565 13,776 General and administrative 5,467 3,986 9,782 6,969 Total stock-based compensation $ 20,598 $ 16,376 $ 38,664 $ 30,032

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of contractual commitments	Material contractual commitments as of June 30, 2024 that are not disclosed elsewhere are as follows (in thousands): Years ending December 31, 2024 $ 4,546 2025 6,498 2026 2,366 2027 378 2028 — Thereafter — Total contractual obligations $ 13,788

Segment and Geographic Data (Ta

Segment and Geographic Data (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of revenue by geographical region	Revenue by geographical region is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Americas $ 78,830 $ 62,312 $ 155,500 $ 121,423 EMEA 15,646 13,054 31,017 25,554 Asia Pacific 4,920 3,949 9,663 7,550 Total $ 99,396 $ 79,315 $ 196,180 $ 154,527

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share	The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net loss attributable to common shareholders $ (16,892) $ (13,085) $ (30,467) $ (23,337) Weighted average common shares outstanding 56,699,148 55,499,399 56,521,490 55,331,151 Net loss per share, basic and diluted $ (0.30) $ (0.24) $ (0.54) $ (0.42)
Schedule of shares excluded from the calculation of diluted net loss per share	The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive. June 30, 2024 2023 Stock options outstanding 2,010 27,010 RSUs outstanding 4,763,867 3,651,744 Total potentially dilutive shares 4,765,877 3,678,754

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of financial assets measured at fair value	The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total Marketable Securities: Corporate bonds $ — $ 11,535 $ — $ 11,535 U.S. agency securities — 798 — 798 Total assets $ — $ 12,333 $ — $ 12,333 December 31, 2023 Level 1 Level 2 Level 3 Total Marketable Securities: Commercial paper $ — $ 33,287 $ — $ 33,287 Corporate bonds — 9,906 — 9,906 U.S. Treasury securities — 495 — 495 U.S. agency securities — 4,289 — 4,289 Asset-backed securities — 367 — 367 Total assets $ — $ 48,344 $ — $ 48,344
Investments Classified by Contractual Maturity Date	The following table classifies our marketable securities by contractual maturity (in thousands): June 30, 2024 December 31, 2023 Due in one year or less $ 12,333 $ 44,645 Due after one year and within two years — 3,699 Total $ 12,333 $ 48,344

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of assets acq uired and liabilities assumed as of the date of acquisition (in thousands): August 2, 2023 Cash and cash equivalents $ 4,648 Accounts receivable 2,979 Other current and noncurrent assets 932 Intangible assets 27,800 Accounts payable, accrued expenses and other liabilities (1,758) Deferred revenue (3,243) Net assets acquired, excluding Goodwill 31,358 Goodwill 112,405 Total consideration $ 143,763 Cash and cash equivalents acquired (4,648) Cash paid for acquisition of business, net of cash acquired $ 139,115 The following table summarizes the fair values of assets acq uired and liabilities assumed as of the date of acquisition (in thousands): January 19, 2023 Cash and cash equivalents $ 366 Intangible assets 1,800 Deferred tax liability (477) Other net tangible assets and liabilities assumed (4) Net assets acquired, excluding Goodwill 1,685 Goodwill 6,611 Total consideration $ 8,296 Deferred consideration related to holdback (1,498) Cash and cash equivalents acquired (366) Cash paid for acquisition of business, net of cash acquired $ 6,432
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date: Fair Value Expected Useful Life Customer Relationships $ 12,400 7 years Acquired Technology 14,100 5 years Trademark 1,300 5 years $ 27,800 The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date: Fair Value Expected Useful Life Customer Relationships $ 200 1 year Acquired Technology 1,600 5 years $ 1,800
Schedule of Goodwill	The changes in the carrying amount of goodwill during the six months ended June 30, 2024 were as follows (in thousands): Goodwill balance as of December 31, 2023 $ 121,404 Purchase price allocation adjustment (Tagger) (89) Goodwill balance as of June 30, 2024 $ 121,315

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Sales and marketing	$ 46,194	$ 39,307	$ 90,734	$ 76,212
Reduction in sales and marketing expense	$ 3,900		$ 8,100
Benefit to Net Loss Per Share	$ 0.07		$ 0.14

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognized previously deferred	$ 67.4	$ 50.2	$ 101.9	$ 71.1
Revenue expected to be recognized	$ 295.1		$ 295.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized, percentage	72%		72%
Revenue, remaining performance obligation, period	12 months		12 months

Operating Leases - Narrative (D

Operating Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Monthly rental payments	$ 686	$ 649	$ 1,374	$ 1,297
Payments related to operating leases			$ 4,100	$ 4,100
Weighted-average remaining lease term	4 years 6 months		4 years 6 months
Weighted-average discount rate	5.50%		5.50%
Minimum
Lessee, Lease, Description [Line Items]
Monthly rental payments			$ 14
Maximum
Lessee, Lease, Description [Line Items]
Monthly rental payments			$ 280

Operating Leases - Summary of o

Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease, right-of-use assets	$ 7,844	$ 8,729
Operating lease liabilities	4,003	3,948
Operating lease liabilities, net of current portion	13,071	$ 15,083
Total operating lease liabilities	$ 17,074

Operating Leases - Lease cost (

Operating Leases - Lease cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Monthly rental payments	$ 686	$ 649	$ 1,374	$ 1,297
Variable lease expense	$ 856	$ 893	$ 1,712	$ 1,786

Operating Leases - Remaining ma

Operating Leases - Remaining maturities of operating lease liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
2024	$ 2,436
2025	4,494
2026	4,298
2027	4,392
2028	1,277
Thereafter	2,326
Total future minimum lease payments	19,223
Less: imputed interest	(2,149)
Total operating lease liabilities	$ 17,074

Revolving Line of Credit (Detai

Revolving Line of Credit (Details) - USD ($)		3 Months Ended	6 Months Ended
	Aug. 01, 2023	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000,000
Debt Instrument, Maturity Date, Description	August 1, 2028
Line of Credit Facility, Covenant Terms		115
Line of Credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Covenant Terms		30
Minimum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.35%
Maximum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Debt Instrument, Floor Interest Rate	1%
Debt Instrument, Basis Spread on Variable Rate	0.10%
Line of Credit Facility, Interest Rate During Period			8.18%
Secured Overnight Financing Rate (SOFR) | Maximum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Base Rate
Line of Credit Facility [Line Items]
Debt Instrument, Floor Interest Rate	2%
Base Rate | Minimum | Line of Credit
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Base Rate | Maximum | Line of Credit
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Line of Credit
Line of Credit Facility [Line Items]
Revolving credit facility		$ 40,000,000	$ 40,000,000	$ 55,000,000
Line of Credit Facility, Covenant Terms	30 million
Line of Credit | Secured Overnight Financing Rate (SOFR) | Minimum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.75%

Incentive Stock Plan (Details)

Incentive Stock Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 20,598	$ 16,376	$ 38,664	$ 30,032
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	906	857	1,831	1,358
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	6,036	4,327	11,486	7,929
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	8,189	7,206	15,565	13,776
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,467	$ 3,986	$ 9,782	$ 6,969

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 4,546
2025	6,498
2026	2,366
2027	378
2028	0
Thereafter	0
Total contractual obligations	$ 13,788

Segment and Geographic Data (De

Segment and Geographic Data (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Disaggregation of Revenue [Line Items]
Total revenue	$ 99,396	$ 79,315	$ 196,180	$ 154,527
Americas
Disaggregation of Revenue [Line Items]
Total revenue	78,830	62,312	155,500	121,423
EMEA
Disaggregation of Revenue [Line Items]
Total revenue	15,646	13,054	31,017	25,554
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,920	$ 3,949	$ 9,663	$ 7,550
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of the United States
Disaggregation of Revenue [Line Items]
Concentration risk percentage			27%	28%

Net Loss per Share - Basic and

Net Loss per Share - Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (16,892)	$ (13,085)	$ (30,467)	$ (23,337)
Weighted average common shares outstanding (in shares)	56,699,148	55,499,399	56,521,490	55,331,151
Net loss per share, basic and diluted (in dollars per share)	$ (0.30)	$ (0.24)	$ (0.54)	$ (0.42)

Net Loss per Share - Shares exc

Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	4,765,877	3,678,754
Stock options outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	2,010	27,010
RSUs outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares (in shares)	4,763,867	3,651,744

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 12,333	$ 48,344
Marketable securities	12,333	44,645
Marketable securities, noncurrent	0	3,699
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	12,333	48,344
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		33,287
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		33,287
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	11,535	9,906
Corporate bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Corporate bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	11,535	9,906
Corporate bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
US Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		495
US Treasury Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
US Treasury Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		495
US Treasury Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
US Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	798	4,289
US Agency Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
US Agency Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	798	4,289
US Agency Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		367
Asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
Asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		367
Asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		$ 0

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands			6 Months Ended		14 Months Ended
	Aug. 02, 2023	Jan. 19, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Aug. 01, 2023
Business Combination, Separately Recognized Transactions [Line Items]
Payments for business acquisition, net of cash acquired			$ 1,409	$ 6,432
Line of Credit
Business Combination, Separately Recognized Transactions [Line Items]
Revolving credit facility			$ 40,000			$ 55,000
Tagger Media
Business Combination, Separately Recognized Transactions [Line Items]
Business Acquisition, Date of Acquisition Agreement			Aug. 02, 2023
Business Combination, Consideration Transferred	$ 144,000
Revolving credit facility							$ 75,000
Payments for business acquisition, net of cash acquired	$ 139,115
Repustate Inc.
Business Combination, Separately Recognized Transactions [Line Items]
Business Combination, Consideration Transferred		$ 8,300
Payments for business acquisition, net of cash acquired		6,800			$ 6,432
Deferred Consideration Related to Holdback		$ 1,500			$ (1,498)

Business Combinations - Fair Va

Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands			6 Months Ended		14 Months Ended
	Aug. 02, 2023	Jan. 19, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]
Net assets acquired, excluding Goodwill	$ 31,358	$ 1,685
Goodwill			$ 121,315			$ 121,404
Payments for business acquisition, net of cash acquired			$ 1,409	$ 6,432
Tagger Media
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]
Cash and cash equivalents	4,648
Accounts receivable	2,979
Other current and noncurrent assets	932
Intangible assets	27,800
Accounts payable, accrued expenses and other liabilities	(1,758)
Deferred revenue	(3,243)
Goodwill	112,405
Total consideration	143,763
Cash and cash equivalents acquired	(4,648)
Payments for business acquisition, net of cash acquired	$ 139,115
Repustate Inc.
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]
Cash and cash equivalents		366
Intangible assets		1,800
Deferred tax liability		(477)
Other net tangible assets and liabilities assumed		(4)
Goodwill		6,611
Total consideration		8,296
Deferred Consideration Related to Holdback		1,500			$ (1,498)
Cash and cash equivalents acquired					(366)
Payments for business acquisition, net of cash acquired		$ 6,800			$ 6,432

Business Combinations - Intangi

Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Aug. 02, 2023	Jan. 19, 2023
Tagger Media
Business Acquisition [Line Items]
Fair Value	$ 27,800
Tagger Media | Customer Relationships
Business Acquisition [Line Items]
Fair Value	$ 12,400
Expected Useful Life	7 years
Tagger Media | Acquired Technology
Business Acquisition [Line Items]
Fair Value	$ 14,100
Expected Useful Life	5 years
Tagger Media | Trademark
Business Acquisition [Line Items]
Fair Value	$ 1,300
Expected Useful Life	5 years
Repustate Inc.
Business Acquisition [Line Items]
Fair Value		$ 1,800
Repustate Inc. | Customer Relationships
Business Acquisition [Line Items]
Fair Value		$ 200
Expected Useful Life		1 year
Repustate Inc. | Acquired Technology
Business Acquisition [Line Items]
Fair Value		$ 1,600
Expected Useful Life		5 years

Business Combinations - Changes

Business Combinations - Changes in Goodwill (Details) - Tagger Media $ in Thousands	Aug. 02, 2023 USD ($)
Acquired Indefinite-Lived Intangible Assets [Line Items]
Purchase price allocation adjustment (Tagger)	$ (89)
Goodwill balance as of June 30, 2024	$ 112,405