Sprout Social Inc (NASDAQ:SPT) stock dropped over 25% after reporting quarterly financials that missed Wall Street expectations.
The social media management software provider reported $96.8 million of revenue, which increased 29% year-over-year, but was short of analyst forecasts pitched at $97.4 million.
It also downgraded its full-year revenue guidance with a new range of $405 million to $406 million, from its previous level of $425.3 million to $425.5 million.
Sprout reported a first quarter net loss of $13.4 million, versus $10.3 million this time last year, and on a per share basis that equated to 24 cents versus 19 cents.
Incoming chief executive Ryan Barretto, in a statement, gave an assertive view of Sprout’s competitive marketplace.
“This will be a winner take most market and I believe Sprout is best positioned to be that winner in a growing market,” he said.
“We intend to drive excellence in everything we do. And we believe that further re-drawing our focus around our best customer cohorts will allow us to scale a durable, efficient upmarket land & expand motion.”
Co-founder Justyn Howard last month announced his move to executive chair whilst promoting Ryan Barretto to chief executive.
Howard, meanwhile, commented: “As partners in this company’s success to date and strategic direction moving forward, Ryan and I had an opportunity to re-draw our roles to best position us to accelerate beyond our $1bn target.”
“We've always embraced change as a catalyst for growth.”
Barretto is slated to officially take the reins as CEO in October 2024.