Latest news with #Barretto
Yahoo
10-06-2025
- Business
- Yahoo
SPT Q1 Earnings Call: Enterprise Pipeline and AI-Driven Product Enhancements Take Focus
Social media management software company Sprout (NASDAQ:SPT) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 12.9% year on year to $109.3 million. Guidance for next quarter's revenue was better than expected at $110.8 million at the midpoint, 0.7% above analysts' estimates. Its non-GAAP profit of $0.22 per share was 48.4% above analysts' consensus estimates. Is now the time to buy SPT? Find out in our full research report (it's free). Revenue: $109.3 million vs analyst estimates of $107.6 million (12.9% year-on-year growth, 1.6% beat) Adjusted EPS: $0.22 vs analyst estimates of $0.15 (48.4% beat) Adjusted Operating Income: $12.54 million vs analyst estimates of $9.01 million (11.5% margin, 39.1% beat) The company slightly lifted its revenue guidance for the full year to $451.4 million at the midpoint from $450.6 million Management raised its full-year Adjusted EPS guidance to $0.73 at the midpoint, a 5% increase Operating Margin: -10.2%, up from -13.7% in the same quarter last year Customers: 9,381 Market Capitalization: $1.27 billion Sprout Social's first quarter results reflected increased enterprise adoption and focused product development as key drivers. CEO Ryan Barretto emphasized the company's momentum with large-scale brands, citing new strategic wins in industries such as medical devices, food and beverage, and hospitality. Management attributed growth to robust execution in its go-to-market team, with particular strength in expanding relationships with high-value customers. Notably, Sprout Social's updated influencer marketing platform and integrations with Salesforce and LinkedIn were highlighted as meaningful product advances. The leadership team also discussed continued resilience in customer retention, crediting improvements in onboarding, support, and a newly implemented customer success platform aimed at proactively identifying renewal risks and expansion opportunities. Looking ahead, Sprout Social's management outlined a measured but optimistic outlook, centered on continued enterprise expansion, multi-product adoption, and deeper integration with global partners. Barretto explained, "We're expanding our sales capacity this year and will continue to throughout the first half, which we believe will drive further momentum in our pipeline generation and enterprise coverage." The company expects elongated sales cycles and stable demand trends to persist through the year, but sees opportunities in cross-selling influencer marketing and customer care modules to both existing and new customers. CFO Joe Del Preto noted, 'We remain committed to growing operating leverage on a year-over-year basis, and will continue to evaluate our ability to drive greater profitability as the year progresses,' underscoring a focus on operational discipline as the company invests in its enterprise go-to-market strategy. Management credited the quarter's performance to targeted enterprise wins, expansion of AI-powered solutions, and enhancements in customer care and partnerships, despite a stable but cautious demand environment. Enterprise customer growth: Sprout Social secured several strategic deals with Fortune 500 companies across diverse sectors, leveraging its ability to consolidate social media management for large organizations. The expansion of $50,000+ annual recurring revenue (ARR) customers was driven by tailored solutions addressing complex enterprise needs. Influencer marketing platform rebrand: The company relaunched its influencer marketing product, incorporating AI-powered natural language discovery and advanced creator vetting features. This update was positioned to help brands quickly identify and engage creators, reflecting the company's response to the shift in consumer discovery trends toward social platforms. AI and automation enhancements: Recent releases included AI Assist for content generation, customer care features like Agentforce integration with Salesforce, and accessibility tools such as AI-driven alt text for images. These tools were designed to streamline workflows and improve inclusivity for both customers and end-users. Go-to-market and sales investments: Management increased sales capacity and implemented a new customer success platform, aiming to proactively manage renewals and expansion opportunities. The sales organization's focus on multi-product selling was supported by new compensation plans and account intent signals. Partnership and ecosystem expansion: The company made progress in global partnerships, particularly with Salesforce and AWS, and began building a network of international resellers to boost its presence in Europe and Asia-Pacific. These efforts were seen as long-term accelerators for pipeline growth and market access. Sprout Social's outlook is shaped by enterprise sales momentum, multi-product expansion, and ongoing investment in strategic partnerships, all while navigating a cautious macro environment. Enterprise pipeline expansion: Management anticipates that growing enterprise pipeline coverage, combined with increased sales capacity, will sustain revenue growth. The company is targeting higher-value customers and larger deals, with the expectation that enterprise adoption will drive average contract value upward. Product cross-sell and adoption: The company's push for multi-product adoption, particularly influencer marketing and customer care modules, is expected to increase both customer retention and wallet share. Leadership sees significant room to deepen penetration within the existing customer base and to upsell new customers at the point of sale. Macro stability and operational discipline: While Sprout Social does not expect the demand environment to improve in the near term, management is focused on maintaining operational flexibility and margin improvement through disciplined hiring and expense management. The company is also monitoring risks related to tariffs and federal spending cuts that could affect customer budgets. In the coming quarters, our analysts will focus on (1) continued growth in enterprise pipeline and conversion rates, (2) adoption rates of new AI-powered influencer and customer care products, and (3) the expansion of global partnerships, especially through new reseller channels in Europe and Asia-Pacific. Execution on multi-product cross-sell and sustained operational discipline will also be important markers. Sprout Social currently trades at a forward price-to-sales ratio of 2.7×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
04-03-2025
- General
- Yahoo
Hawaiian Electric commits $260K to local nonprofit combatting wildfires
Hawaiian Electric today announced a pact with the nonprofit Hawaii Wildfire Management Organization to help fund coordinators for its Firewise community programs. The company said it recently paid the first $50, 000 of a $260, 000 commitment to HWMO, a Hawaii-based nonprofit leading wildfire preparedness efforts across the state. HWMO locally administers the nationally recognized which helps communities organize, prepare, and take actions to protect their homes against wildfire threats. Currently, HWMO oversees 31 Firewise communities across three counties—from Kamilonui Valley on Oahu to Kula Meadows on Maui and Waikoloa Village on Hawaii island. The funding comes as the nonprofit's federal grants for these programs are ending, according to Nani Barretto, HWMO co-executive director. Since the deadly Maui wildfires occurred in August 2023, interest in the Firewise communities program has grown exponentially. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Barretto said within 10 months of the Maui wildfires, another 15 communities were added to the 15 that were already established as nationally recognized sites. Another 13 are in the application process. Firewise program coordinators help communities think through what projects will reduce risk, provide technical assistance and bring neighbors together to share resources, among other responsibilities. Some examples include bringing community groups together to create firebreaks in Kamilo Nui Valley, along with projects to remove invasive, fire-prone fountain grass from common areas at a Mauna Kea Resort community. Hawaiian Electric was also a sponsor of the Hawaii Wildfire Summit in Kona last week, which brought leaders from fire departments, emergency management, forestry, natural resources, utilities, insurance, and more to discuss wildfire preparedness and management in the state. HWMO hosted the summit in partnership with the state Division of Forestry and Wildlife and various fire departments. 'Our support of Hawaii Wildfire Management Organization is a valuable investment in strengthening community resilience across the five islands Hawaiian Electric serves, ' said Kurt Tsue, Hawaiian Electric director of community affairs, in a news release. 'Getting behind HWMO's community-driven wildfire mitigation efforts is critical as we work in parallel to upgrade our infrastructure to reduce the risk of ignition and protect our customers and communities.' 5 Comments By participating in online discussions you acknowledge that you have agreed to the. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our. Having trouble with comments ? .
