SPT - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Sprout Social's Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode.

We will conduct a question and answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Investor of Head Rechel, Relations. Jason Please go ahead.

Jason Rechel

and and earnings provisions call. operator, our which release closed can welcome investor on an results to XXXX quarter press today, market after third be Social's issued also We'll presentation, in released updated Sprout announced Thanks, we've our and be found the discussing statements, me Today's harbor call Barretto. are Justyn the which website. the Ryan made of Social's With to Howard; CFO, Litigation of contain forward-looking Securities President, CEO, Sprout Joe are pursuant Del Reform Preto; XXXX. Private will safe Act

and Forward-looking concerning performance words seek year our anticipate, can as be views upon our and today reflect expect, trends, plan, among as XXXX the at statements. duty intend, statements views will. financial any don't as our XXXX expected and These condition, of include, statements full be for guidance our or others, financial date, and to such update the only, by financial we and identified relied representing fourth undertake these statements shouldn't future any business quarter of business and believe, subsequent

actual to Forward-looking that cause uncertainties are materially. results statements to subject risks could differ address that matters and

XX, reports XX, could on the quarterly that filed other Commission risks future December SEC. a well to For of with current discussion actual Exchange important affect factors the as with and February results, annual on XXXX, we and fiscal the as Form ended the and year that report our Securities our refer please XXXX, any file XX-K for

turn and our in me our available on with call SEC at is are has over measures principles. the that, along Justyn. directly reconciliations GAAP accordance prepared measures, financial non-GAAP to the earnings investors.sproutsocial.com. financial we'll with measures During press let And which with the discuss to non-GAAP these the generally financial accounting furnished website accepted of not in which Definitions to comparable been most release, are call, included

Justyn?

Justyn Howard

Thank you, Thank everyone. joining Jason, us. you and for good afternoon,

XX% Our growth, public team fastest level, rate high report growth quarterly revenue at pleased to a execute continues our as to a company. and we're yet

side multiyear our more Following where to of front We a simply always, I'll our first and September, at IPO, we're ground never as outlined anniversary in the call and few billion We Day, positioned for cover Day as our comments a Ryan about And grateful $XXX keep prepare before we've believe the in partnership last, our X-year business lot so your highlights turning us. details. to opportunity cover to the support. been today. goals, Investor we on we I'll Joe the well shorter the my covered excited we're on capitalize of momentum. of to the Investor our and over

segments, our our quarter, which XXXX revenue secular go-to-market social tailwinds quarter collectively a platform. technology unique of heels XX% to growth records, and milestone the outsized of momentum enterprise XX%. This raise the mid-market revenue growth driven series to strategy XX% to our in differentiation by managed are media own of of our our the a Yet On of we this ARR. forecast and break again, now pleased approaching we're reinforces the management

$XX,XXX again rule the more than in QX, achieved contributing in more customers and a record eclipsed of we added of contributing added a XX consecutive for We quarter. flow, During number cash we positive customers a of free record than and number $XX,XXX second ARR ARR.

operationalize into of head Our accelerated further as Social. as growth end year, large efficiency increasing the our the quality, the underscoring growth and has customers customer durability we of momentum our

our our core strategic making press long-term and While differentiators, platform also on we opportunities. in continue we're foundational improve to rapidly investments

shift rapid we're how care social modern of commerce, of in the and in use tooling expanding and positioning business. and advocacy are of investments examples ourselves listening, social the Our cases ahead media

and segments, that these with allows because point, single-digit unique in across evolving the build capabilities opportunity our we and core penetration us of customer of has is our work we of these core XX,XXX emerging development their customer This million critical software various on also needs and than most more media that provide and estimate with with innovation align the aspect XXX industry as of way have opportunities. more for of social customers step improvements with market our to life We social grows still on coupled market the levels damage our opportunities We're adjacent to a X. The shape nearly deliberately speed sophistication competitive inform advantage to model verticals businesses strategy help our that balancing improve will a rely than every constantly cycle. rapidly. addressable

see to this thinking Earlier choice several the we've thinking with X down coming From continue our technology go-to-market well partner of growing also people organization the is need This only seamlessly perspective, to media the following us to the to an you'll year, than company is address quarters. team platform, excited delivering their emerging WhatsApp spent integrations be most team constantly business TAM full this over going going the really that recent team platform our about the integration example for still recognition We're mid-market rated to cases WhatsApp XXXX to the end into the latest on is utility to Our announced continue be in values messaging you commerce, significant We're Glassdoor and expand footprint social something the that globally, quickly. and integrate time, U.S. platform. work-life of strategy. seen the about. about our found the and same $XXX backdrop this channel always and the hard speaking social very unified specific of. XXXX customers, to the double of balance. we're those billion we're COVID highest social what shaped we're into we've to across company customers in our other on of the is new billion XX use further the to reviews will in for company Sprouts customers. across announced and for an the third what we data our to our by for on and a to that heading and more past during expand to across We'll the allow to quarters. the from planning, value use while opportunities and that's into approach this months our performance we're customers of cases expand have proud with more we'll in channels We're year we're Sprout that that able A us fast empower spectrum we're reach ambition momentum, with that Considering customers. ourselves today, enterprise success Sprouts shift of we've and messaging the and our and matter the bringing into positioning creates growing company. premium module past planning capabilities foundation to focus, only and estimated analysis the

value best to in of to continue company, years different build With that, While the for industry success of shareholders. to aspire we're the excited take our build putting the kind I people in Brian. a our to ahead. will over our software and first, and care our amazing on we'll We're build the turn customers call

Ryan Barretto

increasing our entry barriers rose and to is delivered quarterly Justyn. overdelivered of to Thanks, the in our opportunity market billion quarter. retain rapidly. this an fastest team the XX% to incredible Once a group lead to differentiated people. The our a front growing They believe us again, on and and as that our We what our platform company. of revenue more success be rising, public This growth, $XXX are help is opportunity our occasion us. will in market we attract, are capitalize teams just ability becoming is

against that has competitive of of our XXXX, win we primary our summer the shared rates During competitors. strengthened each

a and with expect software themselves We full evaluate era work contractual new year behavior new distributed than year before customers changed, and a of try commitment. are more has for is the data. a compelling making standard now into Buying to a

makers seen executives, quarter. lead to us enterprise win at increased again believe marketing I'm positioned has impact mid-market enables happy effectively shared all and to it to our on outbound market. access to we've the view segments the of this both both way decision our believe the of sales growth cohorts focus and of while and in constructed recent democratizing to terms could buy. to in XX-K our in organizations our and efficiently want We've percentages well always These against to software share acceleration opportunities our through dollars really inbound way be the taken of are XX,XXX significant Day, we us in our platform and the that and the these our The building each acceleration approach helped unique and that primary market the year-over-year software QX, customers efforts to And our of as continue As competitors. segments. we efforts prioritize in meeting net Investor seeing long record growth ACV. additions that and that customer industry-leading we competitive and they we drive as rates, that strategic deliver

ensure make to that to executing. the value maximizing our in onboarding continue investments are teams customers, to we're our way and opportunity I'm add these customer success and We proud of to big

each XXXX we As Justyn said, we're doubling down as planning. these move areas of into in

creating differentiator integration capitalizing drivers of from analytics growth. that listening in to The massive need collaborate on Our our premium our at and for is insights value platform build of are offerings, success different of growing our Sprout. number social and seamless use teams parts of a of users with cases a like organizations compelling large and

grew Atlassian, Instant Blue believe team software includes Park we help a LHAC Social become win. sample with sport, and Zscaler, teams Cross Properties, A best the Blue of these that of TrueCar, Shield to this quarter has equipped Group. TESSCO cross-functional the Brands, Michigan, and brands PLC, us we're Northland

everything was customer platform a opportunity valuable social our social Now platform. area to insights curation, digital and all-in-one partners. and understand this who up-level given emerging working natural the partners entertainment of trends consolidate shop reporting Vice We help delivered will to approach Social's They with for needs marketing in Digital a particular, a us President game of across is Director Suriti We to a said, Marketing, are had needed to has Zscaler and social fans publishing, engage us helped engagement, content and Sprout in one-stop partner, Also, begin on uncover brand. how the and Tucker Taylor Sharma, Sports our few for said transform fast-paced Harris media to new Sprout is identifying unified Digital us the efforts sports listening social. the with the been the quarter, managing Entertainment. sentiment a shifting stories. a Blitzer critical has feature X focused and business Zscaler these and fit, manage a ability highly has the Growth tagging and changer. In given Sprout dynamic has channels. they Marketing.

the performance measure with teams uptake that also social also this feedback campaign on commerce Our partner of pleased I'm these that of until customers we the can really to concepts quarter. proof begin remarkable new insights new with early more customer commerce social and very gaining capabilities. is the drive into now quickly deals. aggregate didn't early of while marketing the end Even and adoption new

direct an Social amazing Media Manager Social's quarter Baby, digital insight native this business. Baby. from of Sprout Taylor said began We Newton Newton functionality using Johnson, some Here's commerce

plan messages click button entire a significantly and from month. increased reply X,XXX X action July, product our by with to integration customers and our result to social's customer Smart use without or to Spread The to response empowering the directly Our products June has our is upgraded is customer per absolutely overall service to by per message upsell we generate Sprout nearly leaving platform. minutes XX% our time catalog team capability more. The while to inbox decreased saves volume service a XX%. rate message average the sales of Using

now, buy app We shared and offers later all-in-one a an also shopping study a retail which services experience. just new case Klarna, for for frictionless pay

marketing build provide helping been acting the intelligence. also source while global engage brand content business customer card manager has in shared. service key The a followers of as as Social program and awareness, company instrumental and creative

improve our primary their smooth how lives. goals daily must first, One can user understand grow is base, to of customers' our needs we our service using shopping but our and

message the together, to it getting record-breaking a all them. we customers insights Social asset engage another had huge is need the to we and for quarter. giving Touring us effectively

and and it and over excited pipeline while one opportunity XXXX. fourth our about run Our us up in teams the heading financials. our customers through are the for year very into strongly, has for for turn close to another faster the delivering I'll to With Joe Joe? us positioning the quarter momentum that, to

Joe Del Preto

through in was before fourth guidance full $XXX.X Revenue Ryan. I'll ARR detail you growth. the moving third XX% Thanks, XXXX. million, for year-over-year. now quarter walk up XX% quarter was $XX.X quarter million, representing QX exiting on third to year the for results our and year-over-year

to X,XXX quarter mix and percentage new for up XX% pleased for best-ever logo the are our see to with expansion We customers, in best healthy added healthy customers ever annual new business quarter finish QX and XX,XXX We our new retention year-over-year. quarter business net on contracts, activity.

high-quality new customers. We our leads enterprise customer remain and to our the QX. we and efforts direct always, high-value, continue against have very marketing deliver from leading As will yield forecast to We're focused during best our that mid-market teams we revenue pleased revenue as cohorts opportunity. quality on

quarterly Our opportunity future. reached contributing while yield us new than number a The from $XX,XXX number year give revenue healthy to up from for XX% customer top ARR, contributing also ago. than customers XXX, XX% ARR, ago. of reached X,XXX delivering than of foreseeable year optimize up funnel $XX,XXX X,XXX, in more in customers more a the to greater A additions the for continues net

record large accelerated year-over-year, As least of our represents growth additions expansion which a combined ACV net When efforts at new fastest result growth in the capabilities, with to these the rate customers cohorts, accelerated years. customer each once growth of in again. our XX% rate of X and ACV direct of our

that and basis a ACD as we positive In legacy expenses, We ability measured, to margin call. a lap simply on for and continuing references otherwise our growth. a and reconciled Day, drivers ago. is a of hosting the on Investor customer share gross a us discussing has results or impact $XX.X XX% gross operating and across at retention year success, benefits growth. results of costs are to statement, $XX.X accelerate down in basis revenue, that support compared were profit of teams. expenses sales points have which our gross our note XXX to which shared XX.X% unless that of stock-based I durable the year also our and stated, ago. of pace number income Sales to all and QX to to was more remainder see exclude afforded a press before margins gross growth As hiring have we support issued from both million the million, to marketing marketing We're invest just even expense XX% XX.X%, earnings please margin are this up count the In representing was GAAP non-GAAP release QX, compensation in to of

total for expense able the fifth investments marketing growth, accelerated the further and $X.X QX expenses a and year of down development or improve we're XX% a into our quarter of ago. Research from active in row, efficiency. sales to as for indicating growth durability were Even revenue, million XX% our

spending expanding $XX.X of a a an But had as of sequentially XX% expenses to for ago. continuing Rank as environment. expenses we're grow. administrative more asset Investor and headcount down revenue, R&D million normalized technology at substantially quarter we increased QX CTO, our meet Aaron set expenses XX% and to accelerate G&A scalability return hiring year we our as and or prove to opportunities. product as we Day, grew were efficiency this General from the Our of shared

nearly Non-GAAP points margin We as year XX% QX expenses This ago. percent negative or expect as a a of loss G&A a operating million we negative revenue X,XXX a to here. further of improvement operating decline an from basis for margin. with X.X% was scale is compared $X.X operating

was loss outstanding per on as average QX $X.X with Non-GAAP net million our for we're common pleased $X.XX based XX.X of stock per efficiency year we share outperformance. and for are scale $X.XX of to loss share a ago. compared to due We surpassing net revenue $X.X million weighted improving million net loss a primarily and of expectations a shares

of balance million to sheet quarter $XX.X cash approximately at with up and and totaled obligations, Turning XX% the QX $XX end QX Deferred at our cash, ended and in was million. at of the $XXX.X million, XXXX both the contracts, statement. and revenue performance QX marketable from cash securities, million end RPO, from of exiting flow billed the $XX.X approximately We $XXX.X million Look our or equivalent up remaining year-over-year. XXXX. unbilled

was recognize $X.X to approximately expect months. the QX negative over or We flow cash Operating XX million a cash flow million million cash free positive negative X% RPO and a compared year positive $X.X next for flow to margin million in flow Free of as revenue $X.X total ago. year cash in a XX% a ago. million $XX.X free positive was negative compared to a QX $X.X margin XX%

Our and on having multiyear contracts grow. as annual into positive they mix mid-market shift are ongoing free each cash the momentum impact towards flow a enterprise and

created offset many guidance. in with pleased optimized some unit year again cash we in have rule QX a of for the and with in terms modest flow economics. to Shifting for flow combination historically positive formal and The invoicing and future QX. our generation QX strong seasonal enterprise to that QX, accelerating attractiveness remain we headwinds has signed took business. of for mind cash the ongoing growth. To want reiterate seen customers margins with in keep I the models, quarter, underscoring above large free of beginning which XX free us revenue We our this cash are growth benchmark flow the of

XXXX, For a to million or of of growth expect we quarter million the rate range total $XX.X in the $XX.X fourth XX%. fiscal revenue of

the We basis investments margin grow, highlighting of as our expect loss operating of of operating improvement We're range efficiency anticipated an of aggressive negative compelling $X.X XXX our This we business improving in million the model. points an $X.X non-GAAP making across company, represents growth million. to X.X%, year-over-year. economics

outstanding. share approximately shares expect a per an between loss basic net stock of non-GAAP $X.XX, assuming $X.XX weighted and common We XX.X million of average

total fiscal is and $XXX.X full XXXX, expect XX%. overall range annual with rate the now For million. growth growth we expected reported of an of to year in This rate $XXX.X million revenue prior of our compared the XX% expected

XXXX, operating For non-GAAP $X.X operating better than improvement annual non-GAAP expect This loss points we now of to basis margin X.X%, prior the more X,XXX million. in $X.X and an of negative range our of nearly year-over-year. basis XXX a than guidance implies points million

per We believe growth now on positioned goals. are $X.XX to with expect $X.XX, of strongly share pleased we to are shares see stock multiyear In we even outstanding. our efficiency. greater non-GAAP XX.X between growth a loss million weighted average We common deliver and net assuming basic approximately summary, faster of

and growth I us investments Justyn, free in confidence Our flow of and cash make happy full rate, your compelling are strong to financial believe years our accelerated enable will and any take leverage that, optimized performance to ahead. Ryan Operator? the questions. achieve With quarters to gives we potential that us

Operator

line Raimo comes of Barclays. the You Instructions] first [Operator from Lenschow question from

open. is line Your

Frank Surace

another for on This Raimo. quarter. great is on Frank Congrats

to what adds particularly? strength users, that exactly large improving Anything enterprise So can came drove attach would strong customer Was better traction? again, there more you average speak that helpful. better be in rates, very

Ryan Barretto

and user across and lot It I took as continue across organization there. We're Social. of the handle in into mid-market of Ryan. question. folks departments having the can for front from customer for It we you various there's sell -- This that to was certainly a and marketing opportunities us. a seeing you. of more enterprise, for care those an of need most was combination things a Thanks answers our is

of of And data, analytics that been sophisticated exists. couple opportunity years, continuing one the functionality to things added the and those listening, more that have major seat insights products as be the and compelling of over the So we've that drivers premium that's with definitely really like then is important expansion from last organizations.

definitely X I those there. say things it's So

in and going our from execution And after just then market content done those and SEO job wonderful So marketing new enterprise these teams. has great on focusing through really a strategy. team sophisticated in our buyers

with And pipeline healthy us a opportunities. of so provided really big it's

Frank Surace

Congrats, again.

Operator

from We Baird. Oliver have Rob

open. line Your is

Rob Oliver

some Ryan, activities. in commerce Facebook. announcements my comes some And the question is a around on social of tape, also on you the you guys heels of and summer you. Obviously, I wanted to for of the WhatsApp on dig deal the bit little the put guys made Instagram related

And if had. upsell it an there mention of a of commerce. us a saw and update significant cross-sell that So momentum on strikes well. ramping are they we And hey and how as also, I'd driver some later contributor get those the guys you buying love a to were was the this of on and then quarter social also off call that's that, to the

I your So to just that. thoughts would love on hear

Ryan Barretto

Yes.

the on take the of here first we I'll lot in a say and -- terms opportunity Social most I'd of question and us. there generally, see of there's headroom of impact. So the front commerce in first

innovation of social their do lot from they've on to road we're and playing, these released about where within the market still think we Not Facebook that many we been if e-commerce we're is really have that success, for functionality, immediately but from those organizations already companies some and talking today. and I there's especially which saw Most had come. seeing about it benefits social Shops But good a a there. the maps. in Shopify, what think have commerce, networks of the just innovation perspective, product that

side that It's it's respond but of faster from it's opportunity had more to a within customers. it example a to that differentiator board came for additional making as leverage customer to their on that enabling quarter to much are in first them data to who and companies We're Newton able support experience us. functionality because the drive to vein the to adding we're customers because And And customer revenue the on today, we cost leverage this other of operation customer versus revenue. a Baby care There's center sofa. the standpoint coming company. social seeing of them rethink provide functionality of value the on today a organizations through an better so number generation cases, the monetizing better obviously they're see the have folks in commerce many customers not those

on that But certainly that as Klarna, nice journey. new again, example seen see a early on for through good study and around buy opportunity differentiator So organizations the driving as us. we've it came a functionality. a I'd the their say commerce it's within pay the board social still was then did customer now comment another just later pretty case revenue and with And I

Rob Oliver

then follow-up. one very And just quick

Just bounce and around these know bit. can I a little

in curious a customer You there. sequentially the I'm anything of there's out was here. growth down if of is. call just little in call guys overall I'm out just had curious there's phenomenal to anything bit. terms the But enterprise add terms if to traction that

Justyn Howard

Justyn. is This Yes.

there. So nothing call out to

we've I there, those particularly think see marketing deals. for in toward as this and both some the the enterprise we're resources, mid-market focused we're applying talked going to larger and sales about fluctuation continue, and past, in

shift of the saw that saw you in the mix shift around we large the volume this deal As quarter.

net the progress on and kind to focus revenue us, that fronts, both remains revenue the continue refine to and out them. the both on the for priority for of continue us on from yield and we'll nothing So to call adds opportunity see the to ads yield from the

Operator

Next, we have Parker Lane from Stifel.

open. is line Your

Parker Lane

those in they're in to that to level shifting your and to there. are cohort make on make from care up last with mid-market of I Sprout, investments more of fields enterprise, sure what and you're the that and more the seeing love some the base customers higher-level sure mean Justyn, of maybe receive? going measures answer just that, and same place pick are SMB to that putting innovation

Justyn Howard

just customers great and really about a our Yes. about with Yes, between it's some real it's solved that the strategy. some team of maybe past, the scale and we something and the and that to difference collaboration capabilities the mid-market core the bit average to But When has our do We've in needs, to that's enterprises more question, there the this still important and capabilities think were things recap. features but ton a a not in to needs, closed. do need. the a talked enterprise versus customer our ton work data sophisticated opinion. needs -- also that the the around of and customer are There's SMB need,

way well. continuous market. across in think up go-to-market focus in perspective, our through and the a from to and realized we lot A there that So of the that balance the marketing that SMB that the And when then about go balancing the And segments. in we've our able always we're we're making all SMB as that road enterprise got driving map value continuing that got deliver to so sure sure making them that's we're of invest we're we've we've value hand hand, right? other mid-market the the and least that segments of to to that continuing be we're not pockets all of and something quite that and nicely. way going going had business. take our going new we're making to with growth intention agency the there strategy that and opportunity our of segments the in enterprise relative that's and And It's there. performing are and to is progress SMB be in identify to that building the we're a those parts additive At give

Parker Lane

that there it Or is the add-ons, it investment areas sounds that improvement share modules going Yes, some incremental maybe in like customers future premium what going looking investing of makes sharing and to on today, in to terms us? there's comfortable be XXXX? insights you're quarters sense. you're something for some in are maybe And forward. into going of with Is something

Justyn Howard

Yes.

Something there. that we'll got more share kind is in firm of we've future quarters plans

rather our sophisticated can is sophistication We'll than past, the customers in modules. into come looking layer customer about and plug base. horsepower capabilities for entire we've trying and more that I out think the way in give lean reiterate those our that and another to the of these all them of the across which platform often just need the those core things talked of premium carving customers I us those some to into on primary

like those market. to things advocacy care, so those specific or the talked publishing of time we've and to get when we'll others customer some we're about, more nearing And that bring

Ryan Barretto

seeing day you every for And there, I'll quickly innovation. maybe add in customers just as terms our of this Parker, are the well, is

-- told so those into on from functionality listening picking product. of this a but reporting listening, And past quarter analytics couple premium of just lot a we've perspective, our a things,

for customer of strength customers to that make There coming enhanced reporting agents was those both powerful in, happening more by that's products there to how a So in it quickly. able of to how even activity we've care that. our see now, for but agents, volume that their be have responding are lot customers

it. but So make the those They evolve customers headlines all we're are seeing to it don't our feeling of some continuing things. and

Parker Lane

Congrats quarter, Ryan. on the

Operator

DJ we have Hynes Next, from Canaccord.

Your line is open.

Lucas Morison

on DJ. Luke This for is

revenue Commerce days KPIs to holiday the not success milestones or with in So it's understanding with watching you're Social we're material products, measure obviously the term? shopping there are that a your curious early corner, around near driver

Justyn Howard

Yes.

is bringing bringing the some is our going fold get for the opportunity the going us to holiday embedded for opportunity objectives adoption The a and are to set holiday opportunity for participate feedback and related great in who and and not focused that customers that's cycle, think to with can and catalyst there. But those volume those focused that is on on. customers of the something year as specific focus more an completeness into we're certainly customers. still getting next learning to map to But capabilities We're want further over bring really of much sort we can terribly that we're be and and to adoption as road as learning as things market we to there. crystallizing that the our and on we're adoption our the the holidays of metrics I volume be future So primary a internally. foreseeable future,

Ryan Barretto

up it prop. that on been sales terms Baby, And side in in then And add of that a commerce that be volume the is is to just speed customers. to response know of number be you've often maybe seeing value there's that is this going going customers and social. the Newton we think are social that the on there just certainly to We from of heard for

to be And in faster able our responding going to be their be huge. so customers, enabling is to to customers

we customers in And quarter so help this that's even effective holiday into fourth season. hope leading that how the during more be to

Operator

Piper Sandler. from we Clarke Next, Jeffries have

Your line open. is

Clarke Jeffries

channel. of to you're obviously, on each in I some my just from the think perspective commentary commerce wanted on what over very from social maybe GMV the time topical Shopify, the growth unpack just bullish two questions I a channels. around commentary of seeing

I like relation there this, trends are think announcement, platform a platform in to the WhatsApp versus very emerging WhatsApp. like across different Facebook

deployed different so for you just commerce some use is could cases. how being if wondering And I'm give social of examples

some are platform? on there think you how of the interesting sort developments happening And depending

Justyn Howard

Yes.

a I spirit the market, kind in of is the taking the bit approach. of a So think what with little consistent question is different everyone's which see we of

to in. And fleshed some customers along of participating and we further really there further those is Where any commerce our role than they're are platform for and standardize normalize efforts the across see our others. sort approaches of out that

out the centralized lot in so that going day, a requirements sort In that, the that The I our examples closer less participate is commerce allow the each in right the channel specifications be and toward that of the product to take they and exact are the agnostic social pretty the taking, win. is think your able across end the formats any are our at to of the we're strategy happen market common equation and a those with can conversations the customers to through case them are of products that's some to channels and various of different thinking and around of the because nuance, all that or denominators. extent and becomes relevant that networks place. lot choose have And to about goal to approach that's build different that are different toward that the a really of platforms a other. and the is businesses integrating mentioned, now them pre-sale those sale across and we objectives networks, bring building primary the one precise post confusion we to of of around strategy And

And front able as well. their be the so get approach to customers. that structure products approach fashion of to the customers in relationships hearing we're less that to is want end right customers exactly in the that the day, who's The the of that's of a in got our taking who the taking, specifics definitely, and we're At they market from with what or matter relevant they're context. timely and

that's but same to So And the more of the objective, ground about which trying channel. the to that solve the evolves. is have continue end to less are on how channel that the approach selling businesses see today, concerned really, we right day, where the to products, think from and at nuance

Clarke Jeffries

business of And definitely global WhatsApp to indication integration. announcement, it was it a then seem sort of angle product the made just there like the as

rest stages be still about is for today, to lot this social growth? is social commerce where of yourself can the is this domestic integrations happening, help investment of lot and thinking growth Just could the opportunity commerce maybe social to there but like happening opportunity global the kind capture the situations early, commerce of really a of the world of stretch the early commerce, an social a like using

Justyn Howard

think That's the taking is to possible, have When social around that's side activity our you of a lens domestic I commerce relates global past place of and specifically two our globally. to as for about to the opportunity broaden think kind ability the it's channel And growth. And things, sided that Yes. us it just more and pulling into But as positive, generally. is you opportunity, global going. is it's definitely restored this on view other us want market we've of thing, where the of a and support. a too the kind where as wide a

to he more globally but about usership both global business side, that also ton we're kind was channel what's that of and to some into solves So of of the core previously how used supported just one, had objectives are across as the going commerce markets. not meeting channels global two we our for a think happened the there

Operator

BTIG. comes next the Matt question from Our of from line VanVliet

Your line open. is

Matt VanVliet

I that mid-market that as and more we accounts guess around on enterprise teams any more you users? are going thinking seen are look how sales at broadly, here. in more widen team establishing go-to-market more and outbound focused lot focus direct Just you much kind of haven't the be after going to of that about you free maybe a about a thinking spending as aperture

Ryan Barretto

lot Yes. Well, news I us a not the motion. for changes our here is think positive with

this. heard touch You of on kind Joe

We continue marketing, more after to sales strategy. in both on capacity very see in organizations a make with going efforts well investments organization these an as buyers driving as to sophisticated the of differentiated. the focused continues still motion. of our and And great a in But and as adding our we marketing mid-market be is for huge our sales We're outbound lot SEO really enterprise product that our BDRs. content part

the we're even enterprise, that the every these in product. start quarter, And closing deals single in the customers with many of so

starting this product, We to contract, like analytics customer and in execution. sell it create for build set competitive data leveraging sign their get sales they And to typically so a much up rely really the know for that motion. it's products like premium demos cycles. even sets it our we And longer our and in to starting we us sophisticated workflow the listening on most before really us, on only and disruptive and and when great

in a We're and but just really to in marketing that to beginning in approach has mid-market at those. our the not the -- your of things of So change motion. mentioned doubling see today, lot as already lot doing you'll question continue a us current the those invest capacity, as down you well it's on

Matt VanVliet

and that to And But thought very priced? when commerce in platform, more as bit how -- into obviously, of morph you going over little volume-based maturity scales? a get you model? have time? Or expecting should be it the how social look how you about to a early. as monetization is more that's think kind happen you going a eventually to about of it's the Are Or still it we

Justyn Howard

Yes.

this think I So -- Justyn. is our

the -- additional the not a an our potentially from top Our as immediate around add-on. as robust, bring feature in table, opportunity focus of of there's immediate are it's is both opportunities all taking increase cetera. to can volume standpoint. immediate off revenue more et set monetize it to the based the not contribution but the We're plans. more thinking the funnel, seeds an part that becomes Those And

Operator

we Berg Next up, Scott Needham. have from

open. Your line is

John Godin

on is Scott. This John for

expansion, you departments, would there color of whether end in are Just where as expand far user. natural kind It fill of success, buyer as a And really be more of over the trending the across helpful. towards the kind what most how curious look the seeing any if on bit changing you're really quarters. you you to nature few little the one different still past be been could that as seeing or it marketing customer has

Ryan Barretto

your for John. question, Thanks Yes.

in amount In yes, seen certainly terms are getting buyer, of of across leaders Leaders those. the in we've an nature of the departments. the involved increase

side, you certainly You that experience. the customer it responsible marketing customer see see it folks with but on are for care,

from just see we from it on in executives are that really insights focused specifically data. social the Sometimes social,

with is So chain. further that. social and being more for the our the manager to team responsible people folks decision-making But just media selling for the more involved that not practitioner, up are

involved the practitioners the about and where themselves a product today and promising the social market. team companies it before of be us us. contract terms they meeting the highly gravity we like of to I about in executives I lot go-to-market this and amazing And their and their growth how But spend this been to of come where also the tells improving data think about front that is the of products just advantages users getting are in of and a things hands opportunity us that how going getting data more to just a of the in this really more that really we're and future going back to thinking There's of end to evolve and opportunity go for how provide the going the keyboard analytics, and It signed them going well well. about with their have the differentiated in is one be and great time. do think thinking to really work and we've think our that's And us. in way to of listening strategy some we for think insights if on with for strategy. go-to-market I the done is show to

Operator

have Turis KeyBanc we Next up, from Capital Markets. Michael

open. Your line is

Michael Turis

giving you. at expansion year. Thanks the for the range Question points Analyst Day the of to for for X margin of X

return extent, into look takes? puts as you you somewhat about some the one in as of the and some you could product office indirect next hand, have well investing you and As at some to On can year, are as impact. talk the least to

hand, the you're On more getting other efficient.

that So drive of how the do next Does to or year? end you things low those end high the range that play out?

Justyn Howard

range don't the I now. changing we're the question. right for Yes, think Michael, thanks

think end I of and we what we working. think year investments about to are as this the get

pockets of things. the base in of single still significant for software time couple or to working talked want to One a halfway flexibility And sales and why really If R&D investments for Ryan always then spent business. And think the in in investments are this that the is made we something we us I before those range we we drive build on to see our example, open if operating reason to allows the but show about see where we to the right? have I still a keep year and invest opportunities in after we can flexibility, and lot the marketing on. year front, quarter, we've that you I we first investing want think code is make is, we why continue way to here's maintain in keep that saw that those. us, good is quarter, because think through business I this that the make next the leverage really want and and the leverage, this

enterprise Every very teams what's we're what's how doing. are hey, work closely agency, mid-market the viewing, Our SMB, month, together. working

maintain we always flexibility, that so to want And Michael.

And And for out. as to about we'll that have probably so play keep like a talk those progress we through the investments while. as open that we'll more range year,

Ryan Barretto

marketing And some direction from one Have did department of your at of more centers sell then, Ryan, you with just together the in department the customer to you work as personas, competitors -- I lot a or customer follow-up. -- and we whether you care. a that that's got some or sales event, interest of certainly Could and as care well.

at So do target point? directly those personas more some you

Justyn Howard

and is going because also actually what today, and of is where that care customers. of need market the just businesses seeing today doing we're and product our their where it to we're Yes, take

think I get of our it in customer experience, customers are perspective to on the about want care a that front our customer of if social. from customers So

that and there. coming have current volume and aren't to that more they of is equipped so And solutions in help them more the

is built omnichannel CRM like on create businesses amazing customer we've that Zendesk that products or talked about within today. we with just customers our also the on base earlier, of call reliance the And on to things getting social Microsoft and social a high area. we experiences. form the prepared to engagement and back the Salesforce have many ensure of the desk customer done from built Service are agents work these care like customers We've into support there this and to Cloud actually in integrations that help so best remarks customer things ensure And and like that's these general, some in the to products their specifically position happening

them. getting cycles, sure map we're seeing today. we're of They're see us you'll turning naturally our So great in make to it sales being those involved to develop road that our folks care continue today. and We're

Operator

from next Instructions] of question comes Blair. from line [Operator Bhatia Arjun Your William the

is line open. Your

Arjun Bhatia

when drove it you that could And asking you whether Justyn, develop something to Apple WhatsApp latest there or was is what background others this in that more maybe add for? it's strategy for were you WeChat just future, you or customers the on announcement think space, messaging bit about others room Was further? and little or this hoping, of I as Chat the give Line us kind addition? Business a

Justyn Howard

Yes. Yes, good question.

and both as can these So over it's a we of time. combination our much customer integrations introducing of objective just as audience customers to our requests capture in

a it all be to feature footprint. set, to that's for about to be -- So consistent just certainly, others alongside And requested our the channel excited excited with manage able customers always something Sprout. that -- we're expanding our is And highly efforts with private that channels I like work the that an continue that ones and of Twitter messaging to develop with a the the your Facebook Instagram to lot done area point, you to before think it, channels around and specifically we're we've mentioned. and add going around that additional

just of increasingly for building That's that today as been in in there be participating and the the we be active we'll and the a we there customers. their are future. Our the both thesis and that market businesses as can. want of deciding have that there and building respond to be consumers channels, opportunity private we some the complete and where own our there ones messaging that has they're part to they the where And be capture always to to others are in footprint going to of support

a our behind there add channel size footprint well So consistent global that its excited that. certainly with the and given utility what's we're strategy to as as and

Arjun Bhatia

XXXX share that I there It's of versus that a anything added. you you your customers? or how have now we that those count in touch in want historical customer cohort Is terms And net year to of cohort of expansion now year or customers since retention on then accelerated. maybe of terms utilization new has a the can for full been performed XXXX cohorts data

Justyn Howard

Yes.

average seats generalities speaking, just across idea larger about as our all but past, to stickier the more products the higher more when land that generally purchased cohorts. grow. they that data, is are, gone just on maybe and the certainly in of the the supports they that we've been some price the they points, And have be they at cohorts tend -- also more with this years So Sprout, might have average, talked helpful, which on our on are both the

those further patterns that, have have things cohorts particularly, that tenured, more been into And and so back like nothing that the of versus comfortable see. points that you saying when price our newer characteristics general with we but if lower that behavior look about we're the are those some much true specific sharing, we cohort

Arjun Bhatia

Congrats on quarter. the

Operator

I'm would to question I to now Mr. at the you, turn Thank time. showing no conference this presenters, back like further

remarks. Howard for closing any Justyn Sir?

Justyn Howard

All Thank right. you. Awesome.

always, team. support. in Really Investor job Great with today, We're you. But quarter. reach thank to appreciated end answer all as the just again We've for and but the of out fantastic with all all year, We and into the we've the that Day to So the you momentum will we forward you if your the any. excited a look over your to we're thank there questions, an had. time, time that are soon. and for you not touch look with carrying conversations any staying forward chatting

Operator

and Ladies you. concludes all today's you Thank gentlemen, joining. for Thank that call. conference

may disconnect. now You

Sprout Social (SPT) 3 Nov 212021 Q3 Earnings call transcript