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Sprout Social, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $102,638,000 from $85,532,000 in the same quarter the previous year. Subscription revenue contributed $101,813,000, while professional services and other revenue accounted for $825,000.
Cost of revenue for the quarter was $23,232,000, compared to $20,198,000 in the same quarter of the previous year. This increase is attributed to higher data provider fees and personnel costs.
The company reported a gross profit of $79,406,000 for the quarter, compared to $65,334,000 in the previous year.
Research and development expenses increased to $26,272,000 from $20,057,000, primarily due to higher personnel costs and stock-based compensation expenses.
Sales and marketing expenses rose to $47,499,000 from $44,499,000, driven by increased personnel costs and marketing initiatives.
General and administrative expenses decreased to $22,514,000 from $24,982,000, mainly due to lower acquisition-related costs.
Net loss for the quarter was $17,087,000, compared to $23,013,000 in the previous year. The loss includes stock-based compensation expense of $23,186,000.
Cash provided by operating activities was $8,952,000, while cash used in investing activities was $36,714,000, primarily due to proceeds from the maturities of marketable securities.
Sprout Social had a working capital of $178,518,000 as of September 30, 2024. The company continues to focus on expanding its customer base and enhancing its platform.
The filing also details the acquisition of Tagger Media, Inc., completed on August 2, 2023, for $144 million, funded through cash on hand and borrowings under the company's credit facility.
Sprout Social does not anticipate cash dividend payments to common stockholders in the near future.
The company identified risks related to macroeconomic conditions, including high inflation and interest rates, which may impact demand for its platform.
Sprout Social continues to focus on international expansion and product innovation to drive growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sprout Social Inc quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.