Sprout Social, Inc. reported a revenue of $405.9 million for the fiscal year ending December 31, 2024, marking a 22% increase from $333.6 million in 2023. This growth follows a 31% increase from 2022, when revenue was $253.8 million. Despite the revenue growth, the company continued to experience net losses, reporting a loss of $62.0 million in 2024, slightly improved from a loss of $66.4 million in 2023. The losses were attributed to significant stock-based compensation expenses, which totaled $84.3 million in 2024, up from $67.7 million the previous year.
In terms of operational metrics, Sprout Social's customer base included approximately 30,000 customers across more than 100 countries. The company saw an increase in its high-value customer segments, with the number of customers contributing over $10,000 in annual recurring revenue (ARR) growing by 7% and those contributing over $50,000 in ARR increasing by 23%. The dollar-based net retention rate for 2024 was 104%, down from 107% in 2023, indicating a slight decline in revenue growth from existing customers.
Strategically, Sprout Social made significant acquisitions in 2023, including Tagger Media for $144 million and Repustate for $8.3 million. These acquisitions were aimed at enhancing the company's capabilities in influencer marketing and social listening, respectively. The integration of these platforms is expected to bolster Sprout Social's offerings and drive future growth. The company also reported a restructuring plan initiated in November 2024, which resulted in a reduction of approximately 50 roles to improve operational efficiency.
Geographically, 27% of Sprout Social's revenue in 2024 came from international customers, consistent with the previous two years. The company continues to focus on expanding its presence in international markets, supported by teams in various countries. As of December 31, 2024, Sprout Social had $86.4 million in cash and cash equivalents, alongside $25 million in outstanding debt under a revolving credit facility, which matures in 2028. The company anticipates continued investment in research and development and sales and marketing to drive future growth, despite the expectation of ongoing net losses in the near term.
About Sprout Social, Inc.
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