Sprout Social (NASDAQ: SPT) reported Q3 EPS of ($0.09), $0.03 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $33.7 million versus the consensus estimate of $33.03 million.

Third Quarter 2020 Financial Highlights

Revenue

• Total revenue was $33.7 million, up 27% compared to the third quarter of 2019.
• Organic revenue (excluding the impact of legacy Simply Measured revenue) was up 34% compared to the third quarter of 2019.
• Total ARR was $141.9 million, up 30% compared to the third quarter of 2019.
• Organic ARR was $140.6 million, up 35% compared to the third quarter of 2019.

Operating Loss

• GAAP operating loss was ($6.9) million, compared to ($5.1) million in the third quarter of 2019.
• Non-GAAP operating loss was ($4.4) million, compared to ($5.1) million in the third quarter of 2019.

Net Loss

• GAAP net loss was ($7.0) million, compared to ($5.0) million in the third quarter of 2019.
• Non-GAAP net loss was ($4.4) million, compared to ($5.0) million in the third quarter of 2019.
• GAAP net loss per share was ($0.13) based on 51.9 million weighted-average shares of common stock outstanding, compared to ($0.30) based on 16.9 million weighted-average shares of common stock outstanding in the third quarter of 2019.
• Non-GAAP net loss per share was ($0.09) based on 51.9 million weighted-average shares of common stock outstanding, compared to ($0.30) based on 16.9 million weighted-average shares of common stock outstanding in the third quarter of 2019.

GUIDANCE:

Sprout Social sees Q4 2020 revenue of $35.8-35.9 million, versus the consensus of $35.08 million.

Sprout Social sees FY2020 revenue of $131.4-131.5 million, versus the consensus of $129.98 million.

For the fourth quarter of 2020, the Company currently expects:

• Total revenue between $35.8 and $35.9 million, or overall growth of 27%. We expect that our organic growth rate will exceed our reported growth rate by a mid single digit percentage point range.
• Non-GAAP operating loss between ($6) million and ($5.5) million.
• Non-GAAP net loss per share of between ($0.11) and ($0.10) based on approximately 53.1 million weighted average basic shares of common stock outstanding.

“We delivered strong results that underscore the attractiveness of our business model,” said Joe Del Preto, CFO. “We’re pleased to raise our expectations for 2020 and we continue to make smart, targeted investments that we believe will deliver durable long term growth.”

For the full year 2020, the Company is raising and narrowing guidance to reflect the following:

• Total revenue between $131.4 to $131.5 million, or overall growth of 28%. We expect organic growth of approximately 35%.
• Non-GAAP operating loss between ($23.6) and ($23.1) million.
• Non-GAAP net loss per share of between ($0.45) and ($0.44) based on approximately 51.8 million weighted average basic shares of common stock outstanding.

The Company’s fourth quarter and 2020 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control, including the impact of COVID-19 on our financial performance and customer demand. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to non-GAAP operating loss, or net loss per share, the most directly comparable GAAP measure to non-GAAP net loss per share, and similarly cannot provide a reconciliation between its forecasted non-GAAP operating loss and non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

For earnings history and earnings-related data on Sprout Social (SPT) click here.