Slides
Page 1
Investor Presentation 3QFY26 1
Page 2
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” “future,” “intend,” “long-term operating model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q4 2026 and full-year 2026 financial outlook and performance against our multi-year financial framework, our medium to longer term goals, our plans and objectives for future operations, growth, initiatives or strategies, and share repurchases and other statements that are not historical facts. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: our workforce reduction plan may not achieve the anticipated benefits and could adversely affect our business, we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on midmarket and enterprise customers; price increases have negatively impacted and pricing and packaging changes may in the future negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms, or if we are unable to renew agreements governing access to the data provided by such APIs on terms acceptable to us or at all; if we are unable to attract potential customers through unpaid channels, or other sources of demand, including expansion opportunities from existing customers and outbound sales efforts, or convert prospective customers and expansion opportunities into paid subscriptions, our business and results of operations may be adversely affected; technological advances in AI may in the future disrupt the social media industry, which could significantly reduce the demand for our services or otherwise adversely impact our business or reputation if we are unable to keep pace and navigate this evolving environment; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and geopolitical conditions, such as recession risks, effects of inflation, tariffs and trade tensions, changes in government spending, labor shortages, supply chain issues, geopolitical instability and uncertainty, and fluctuating interest rates have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 7, 2026, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 to be filed with the SEC, as well as any subsequent reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic and geopolitical conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Cautionary statements made in this presentation, including those referencing risk factors in our SEC filings, also qualify any forward-looking statements made orally by our officers or other authorized persons in connection with this presentation. Use of Non-GAAP Financial Measures We have provided in this presentation certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that these non-GAAP financial measures are useful to investors as additional tools to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similarly titled measures presented by other companies and therefore may not be comparable. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included at the end of this presentation, and investors are encouraged to review these reconciliations. The Company cannot provide reconciliations between its forecasted non-GAAP measures and the most directly comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items include, but are not limited to, stock-based compensation expense, acquisition-related costs, amortization of acquired intangible assets, and restructuring charges, including any remaining costs associated with the Company's July 2026 workforce reduction plan. These items are not within the Company's control, may vary significantly between periods, and could have a material impact on future financial results presented in accordance with GAAP. Customer Metrics and Market Data This presentation includes useful customer metrics and other data, which are defined at the back of this presentation. Unless otherwise noted, information in this presentation concerning our industry, including industry statistics and forecasts, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. Projections, forecasts, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors. We have not independently verified the accuracy or completeness of the information provided by independent industry and research organizations, other third-parties or other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that information nor do we undertake to update such information after the date of this presentation. DisclaimerDisclaimer 2
Page 3
3Q FY2026 Results 3
Page 4
*All financial metrics are as of or for the quarter ended 9/30/26. Revenue and ACV growth represents year-over-year growth of Q3 2026 over Q3 2025. Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 Tens of Thousands Customers in 100+ countries 4 12% ACV Growth 8% Revenue Growth 99% Subscription Revenue 77% Gross Profit
Page 5
5 FY2026+ Growth and Profitability Plan Customer Segment Plans $30K ARR and Above Continue Investments in R&D & GTM Expand Customer Share of Wallet Below $30K ARR New Packaging and Product Approach Utilize AI & Automation to Improve LTV to CAC Rule of 40 Target 30% By 4Q 2027 Continued Focus on Growth Opportunities Opportunities To Drive Incremental Operating Leverage See appendix for definition of 30% Rule of 40 target.
Page 6
Q3 FY2026 Financial Overview See appendix for definitions of the metrics included on this slide. Non-GAAP Gross Margin, Non-GAAP Operating Margin and Non-GAAP FCF Margin are Non-GAAP financial metrics. See appendix for definitions of these Non-GAAP measures and reconciliations of these measures to their closest comparable GAAP measure. 6 Q3 FY2026 Q3 FY2025 Total Revenue $125.1M $115.6M Customers Contributing ≥$30k in ARR 3,925 3,711 Customers Contributing ≥$50k in ARR 2,155 1,947 Average Contract Value (ACV) $18,009 $16,064 RPO $393.9M $357.1M cRPO $280.2M $258.5M Non-GAAP Gross Margin 78% 79% Non-GAAP Operating Margin 21% 12% Non-GAAP FCF Margin 21% 9% Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 7
Revenue ($ Millions) 7 Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 8
Non-GAAP Operating Income (Loss) Non-GAAP Operating Income and Non-GAAP Operating Margin are Non-GAAP financial metrics. See appendix for definitions of these Non-GAAP measures and reconciliations of these measures to their closest comparable GAAP measures. 8 ($ Millions) Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 9
Average Contract Value (ACV) See appendix for a definition of ACV 9 Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 10
Broadening Customer Adoption 10 Recent Customer Highlights Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 11
11 Fortune 500 technology company selects Sprout to consolidate fragmented social stack Unifying social intelligence, employee advocacy and listening into one platform BENEFITS ⠀ Consolidate a fragmented social stack, unifying intelligence, advocacy and listening on one platform to end vendor sprawl ⠀ Reinvigorate a low-adoption advocacy program across thousands of seats with easy onboarding, role-based permissions and campaign reporting ⠀ Democratize listening so non-data-scientists can build topics, monitor competitors and surface sentiment without Boolean queries ⠀ Accelerate executive social management with secure authentication and automated reporting, without direct profile access WHY SPROUT ● Streamlined operational efficiency ● Precision cross-channel attribution ● Automated multi-platform delivery ● Unified infrastructure consolidation ● Enterprise-grade data integrity ● Reduced platform latency PURCHASED: Premium Analytics | Listening | Employee Advocacy | Trellis Plus | Premier Success USE CASE: Marketing DEAL TYPE: Land
Page 12
American entertainment company selects Sprout to accelerate publishing and prove influencer ROI Unifying publishing, influencer marketing and AI-powered community management across artist and label rosters PURCHASED: Trellis Plus | Influencer Marketing | Premium Analytics | Premier Success USE CASE: Marketing, Influencer DEAL TYPE: Land SPROUT ENABLES THIS COMPANY TO: ⠀ Accelerate enterprise publishing velocity across extensive artist and label rosters with a unified release calendar, mobile-first workflows and multi-tier approval gates that eliminate post failures ⠀ Quantify influencer program performance with structured creator databases and custom metadata fields, such as rates and artist affiliations, to streamline brand-safety vetting and prove direct ROI ⠀ Optimize content strategy through granular campaign tagging, enabling post-level performance audits, release-timing tests with A/B testing and follower-churn analysis ⠀ Centralize multi-profile community management with AI-powered inbox intelligence that automatically triages engagement, aggregates sentiment trends and surfaces core audience themes at scale BENEFITS ● High-volume publishing acceleration ● Fail-safe scheduling & governance ● Creator-level ROI attribution ● AI-driven inbox centralization ● Granular audience-retention analytics ● High-profile event scalability
Page 13
Global paper manufacturer expands Sprout from reactive tracking to predictive risk intelligence Adding NewsWhip, Trellis Plus and unified listening on one enterprise platform PURCHASED: Premium Analytics | Listening | Service Cloud | Trellis Plus | NewsWhip | Premier Success USE CASE: Marketing, Care, Crisis Monitoring DEAL TYPE: Expand SPROUT ENABLES THIS COMPANY TO: ⠀ Transition from reactive tracking to proactive risk mitigation with NewsWhip predictive analytics that forecast emerging media spikes up to 24 hours in advance with 80% accuracy ⠀ Track macro sustainability conversation trends across deforestation, recycling and carbon intensity with automated intelligence dashboards and AI-generated executive summaries ⠀ Scale enterprise AI analytics adoption across power users by deploying Trellis Plus seats and pre-configured Studio prompts to eliminate execution bottlenecks and credit limits ⠀ Consolidate market research and engagement infra onto a single enterprise platform, displacing incumbent tooling and unifying media intelligence, 30 listening topics and community care ⠀ BENEFITS ● Predictive media risk intelligence ● Automated sustainability narrative monitoring ● Scalable AI-insight capacity ● Unified listening & intelligence ● Seamless legacy vendor displacement ● Comprehensive historical data retention
Page 14
Approximate Annual Recurring Revenue Enterprise: Fortune 500 Financial Services Firm Customer Adoption Journey Premium Analytics Premier Success Additional users Additional profiles $309K Started with : Advanced Plan $28K Service Cloud Additional users Employee Advocacy Additional Users $226K $226K $262K Listening Annual Recurring Revenue: We define ARR as the annualized revenue run-rate of subscription agreements as of the last date of the specified period. ARR at time of first contract was $28K.
Page 15
Approximate Annual Recurring Revenue Enterprise: Global Auto Manufacturer Annual Recurring Revenue: We define ARR as the annualized revenue run-rate of subscription agreements as of the last date of the specified period. ARR at time of first contract was $130K. 15 Customer Adoption Journey Employee Advocacy Additional users Service Cloud Additional users Influencer Marketing Additional users $710K Started with : Advanced Plan Premier Success Premium Analytics Listening Additional users New geography
Page 16
Annual Recurring Revenue: We define ARR as the annualized revenue run-rate of subscription agreements as of the last date of the specified period. ARR at time of first contract was $30K. 16 Approximate Annual Recurring Revenue Midmarket: Consumer Pet Company Customer Adoption Journey Additional users Additional users Additional profiles Listening Premium Analytics Additional users Additional users Additional profiles Advanced Plan Started with :
Page 17
(Millions, except EPS) 4Q FY2026 FY2026 Total Revenue $124.2M - $125.2M $494.7M - $495.7M Non-GAAP Operating Income $21.4M - $22.4M $77.8M - $78.8M Non-GAAP Net Income Per Share $0.36 - $0.38 $1.29 - $1.31 Basic weighted average shares of common stock outstanding 59.0M 59.7M 17 Guidance
Page 18
Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers 18 We use Approximated TTM Subscription Revenue Contribution as an approximation of the trailing twelve month subscription revenue contribution for this customer cohort. This metric does not reflect the actual revenue contribution for this customer cohort and should not be viewed as a substitute for revenue or any other financial measure presented in accordance with GAAP. See the appendix for a full definition for this metric. Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 19
19 Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers as % of Total Subscription Revenue We use Approximated TTM Subscription Revenue Contribution as an approximation of the trailing twelve month subscription revenue contribution for this customer cohort. This metric does not reflect the actual revenue contribution for this customer cohort and should not be viewed as a substitute for revenue or any other financial measure presented in accordance with GAAP. See the appendix for a full definition for this metric. Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026
Page 20
Customer Health & Adoption Increasing our focus on customer health and driving improved onboarding and adoption behaviors. Partnerships & Ecosystem Continued partnering with companies like AWS and Salesforce who are able to bring Sprout into larger, strategic accounts. Improved Account Penetration Accessing additional budgets within existing accounts with premium modules and professional services. 20 Growth strategy Win the enterprise Driving increased pipeline creation and strategic logo wins in accounts over $50K in ARR.
Page 21
Empowering businesses to operationalize social Disruptive product led model and fast time to value Recurring SaaS model (99% subscription) Durable moats and barriers to entry Social system of record, intelligence and action Highly scalable single code base Experienced leadership team Large and rapidly growing TAM 21 Investment Highlights
Page 22
Driven by a world-class executive leadership team Ryan Barretto CEO Aaron Rankin CTO Crystal Boysen CPO, People Heidi Jonas General Counsel Scott Morris CMO Team background: Srinivas Somayajula CPO, Product Lori Jiménez CRO Colleen Geiselhart SVP, Customer Experience
Page 23
Long Term Operating Model Chart displays year over year growth. Non-GAAP Gross Margin, Non-GAAP Operating Margin and Non-GAAP FCF Margin are Non-GAAP financial metrics. See appendix for definitions of these Non-GAAP measures and reconciliations of these measures to their closest comparable GAAP measure. 2023 2024 2025 3Q26 Medium to Longer Term Goals Revenue Growth 31% 22% 13% 8% >$1B Non-GAAP Gross Margin 78% 79% 79% 78% >80% Non-GAAP Operating Margin 1% 7% 11% 21% >20% Non-GAAP FCF Margin 3% 7% 10% 21% 20-22% Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 23
Page 24
Corporate Overview Sprout System of Record and Action 24
Page 26
Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 26 Appendix
Page 27
Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 27 Appendix
Page 28
Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 28 Appendix
Page 29
Fin Reporting Signoff: NAME: Brian Flynn DATE: 11/1/2026 29 Appendix
Page 30
30 Appendix 30% target for a Rule of 40. We define this target as year-over-year revenue growth plus current quarter non-GAAP operating margin equal to 30%. Annual Recurring Revenue (ARR). We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period. Approximated TTM Subscription Revenue Contribution for ≥$30K ARR Customers. This metric depicts our approximation of the trailing twelve month subscription revenue contribution from customers contributing $30,000 or more in ARR. We calculate this metric by averaging the ARR of these customers as of the end of the applicable quarter and the immediately preceding quarter and dividing by four to derive a quarterly revenue contribution estimate for this customer cohort. This quarterly estimate is then summed over the preceding four quarters to approximate a trailing twelve month revenue contribution for this customer cohort, subject to minor adjustments for rounding. We believe that customers contributing $30,000 or more in ARR represent those customers that can benefit the most from our platform given their more sophisticated needs for social media management software as compared to customers below this spending threshold. We believe this metric is useful in measuring our success in serving this particular customer cohort. This metric does not reflect the actual revenue contribution by these customers over the trailing twelve month period, and should not be viewed in isolation as a substitute for revenue or any of our other financial measures presented in accordance with GAAP. We use this metric to approximate revenue contribution over a specified period because the historical data and account mapping is not available to present the actual revenue generated by this cohort of customers over a historical period. While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social's business, these metrics are necessary for an understanding of how we define number of customers contributing $30,000 or more in ARR and number of customers contributing $50,000 or more in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity. Average Contract Value (ACV). We define ACV as the ending period total ARR divided by the ending period total customer count. Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from the Tagger Media, Inc. (“Tagger”) and NewsWhip Group Holdings Limited (“NewsWhip”) acquisitions, and restructuring and related charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring and related charges, which are often unrelated to overall operating performance. Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue. Non-GAAP operating income. We define non-GAAP operating income (loss) as GAAP loss from operations, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration. We believe non-GAAP operating income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance. Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.
Page 31
31 Appendix Non-GAAP net income (loss). We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration. We believe non-GAAP net income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance. Non-GAAP net income (loss) per share. We define non-GAAP net income (loss) per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, acquisition-related expenses, amortization expense associated with the acquired intangible assets from the Tagger and NewsWhip acquisitions, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration. We believe non-GAAP net income (loss) per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, acquisition-related expenses, amortization expense, restructuring and related charges, non-cash (gains)/losses from lease modifications and terminations and changes in the fair value of contingent consideration, which are often unrelated to overall operating performance. Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities less expenditures for property and equipment, plus acquisition-related costs, interest payments on our revolving credit facility and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, acquisition-related costs, interest and payments related to restructuring charges, is available for strategic initiatives. Non-GAAP free cash flow margin (Non-GAAP FCF Margin). We define non-GAAP free cash flow margin as non-GAAP free cash flow as a percentage of revenue. Number of customers contributing $30,000 or more in ARR. We define number of customers contributing $30,000 or more in ARR as those on a paid subscription plan that had $30,000 or more in ARR as of a period end. We view the number of customers that contribute $30,000 or more in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base. Number of customers contributing $50,000 or more in ARR. We define number of customers contributing $50,000 or more in ARR as those on a paid subscription plan that had $50,000 or more in ARR as of a period end. We view the number of customers that contribute $50,000 or more in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base. Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. For purposes of the above metrics, we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.