Sprout Social Sees FY23 EPS $0.12-$0.13 Vs $0.08 Est.; Revenue $330.6M-$330.7M Vs $328.78M Est.
Portfolio Pulse from Benzinga Newsdesk
Sprout Social has updated its FY23 guidance, expecting total revenue between $330.6M and $330.7M, higher than the estimated $328.78M. The company also anticipates a non-GAAP net income per share between $0.12 and $0.13, surpassing the $0.08 estimate. The implied ARR growth rate for 2023 is projected to be around 30%, up from the previous estimate of 28-29%. However, the company's services revenue is expected to be lower than 2022 levels.
November 02, 2023 | 9:18 pm
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Sprout Social has raised its FY23 guidance, which could positively impact its stock. The company expects higher total revenue and non-GAAP net income per share than previously estimated. However, a decline in services revenue could offset some of these gains.
The raised guidance indicates that the company is performing better than previously expected, which could lead to an increase in its stock price. However, the expected decline in services revenue could be a concern for investors and may limit the stock's upside potential.
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