Sprout Social (SPT) 1 Aug 242024 Q2 Earnings call transcript

Thank you for standing by. My name is Meg, and I will be your conference operator today. At this time, I would like to welcome everyone to the 2024 Q2 Sprout Social, Inc. Conference Call. [Operator Instructions]

to conference like to now would turn over the Mr. I Relations. Vice President Rechel, of Jason Investor Please ahead. go

Ryan Thank Preto; Welcome announced are With Call. and which We'll Howard; release you, can XXXX Justyn after Sprout have be and Quarter operator. issued Joe Barretto. on updated CFO, discussing Social's to also Sprout be released CEO, the investor closed found me results market in President, an press Second our Del today Social's presentation, Earnings website. our

relied Today's Securities will which All be today to business can opportunity plans seek, views will. made Act and expect, as future call include, of forward-looking contain update by and are date, These any others, views such objectives and provisions and XXXX. only these plan, do looking. statements among pursuant statements, should as expected harbor as financial safe identified anticipate, statements historical not performance of reflect duty we to forward believe, our fact statements intend, be of undertake Litigation and the at other any These upon our than of representing the subsequent are statements statements. Private Reform our or words concerning not

that matters to could cause differ risks are actual address statements and Forward-looking results materially. to subject uncertainties that

the filed please For the our most June a ended with results, quarterly XX-Qs. well could XX-Ks to as refer discussion be XX-Q quarter and actual of to the our our for risks on and as that other important recently XX, affect factors SEC filed report XXXX, Form

second accepted financial to GAAP investors.sproutsocial.com. on earnings furnished most along our press SEC which prepared discuss to been are we'll with the of at the our are these comparable release, is quarter non-GAAP non-GAAP which call, measures, not During website and Definitions in directly measures in generally available accordance with principles. measures, has included accounting financial reconciliation the the financial

over call me turn that, with to the Justyn. And let

Thank today. what to to everyone for Chair into as you, us off you on be Executive Jason, will last stepping joining honored earnings am the us before role. I my and thank kick CEO

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work partner the solutions API. Sprout as brand excited scale product innovative for customer leadership, positioned member than Threads and lead to new Meta's network have operationalize before media and better differentiated to ever what to bring and to of define partner and Social partners a a our social technology strategy. partnerships beta for our a with believe including As adtech both We brands customers, sophisticated Sprout to program, we're meant is

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looking and into the our step we towards collectively create value and role the scale multiyear for a CEO few we'll I'm to energized shareholders all partners, officially grateful as now, employees customers, to from months and I'm goals. forward our

And financials. I'll run to through over with Joe? to it the that, Joe turn

through now Thanks, results and run I'll financial Ryan. guidance. our

quarter growth. that XX% number was for ARR year-over-year. grew XX% Services XX% The we're million, second ago. The Revenue outlined of customers contributing customers more $XX.X revenue in revenue representing year-over-year. ago. than $XX,XXX in XX% pleased $XX,XXX year more tracking million, grew up up year-over-year XX% We're May. plan contributing was was Subscription from a ARR from the a of than $XX.X year million, of rise number the in $X.X ahead

year-over-year. up $XX,XXX, XX% was ACV QX

rates, attach influencer continue We rapidly and by expect over growth shifting customer driven ACV enterprise care. marketing strong module term, medium strengthening mix, to the premium

non-GAAP QX, revenue, for $XX.X non-GAAP million, XXX million was a In marketing or XX% were margin of a ago. points gross of down ago. Non-GAAP gross up sales year XX.X%, basis representing expenses profit $XX.X year a from XX% from and QX

compared amortization Our ago. commission change and in by reduced marketing with deferred a year expenses $X.X sales million

$XX.X up for XX% ago. development expenses a and XX% of research QX Non-GAAP year from were million revenue, or

to care. continue We investments make AI social in customer and multiyear targeted

of Non-GAAP XX% down or and for expenses ago. general year XX% administrative from QX a $XX.X million were revenue,

expect We revenue G&A percent moving leverage as consistent deliver of to forward. a

to common per net for million of income based $X.XX stock was million of a on share income for X.X% non-GAAP $X.XX XX.X compared ago. and or weighted Non-GAAP income non-GAAP margin. of share operating year QX million $X.X net for $X.X outstanding was $X.X QX net non-GAAP per income average a operating Non-GAAP a shares million

Turning at down cash in $XXX.X quarter is cash, the and from $XX.X million. ended and Deferred with marketable end equivalents This the million sheet of revenue the was cash QX We statement. balance to end QX. of the million $XX.X flow securities. at

up Looking unbilled in up from totaled year-over-year. billed XX% and RPO million as at contracts, QX and million, both $XXX.X our $XXX.X

expect We implying million XX $XXX.X XX% RPO XX% next recognize over of revenue a of to months, year-over-year. of cRPO the total rate growth

from of was million, towards $X.X was million flow down $X.X time. that cRPO $X.X ago. cash our million a are QX believe year million, flow indicators free ago. cash converging in down Non-GAAP over from $X.X continue a Operating year We all leading to

formal to guidance. Shifting

of range growth For of $XXX.X in million for of million the a third fiscal than we to XX%. the quarter XXXX, expect revenue rate more $XXX.X

of to in non-GAAP operating the non-GAAP at record represents $X.X midpoint. $X.X expect income million. X.X% of a the margin We million range operating This

$X.XX. of and income a shares expect between XX.X common weighted average net We outstanding. million non-GAAP per $X.XX share This stock basic assumes

accelerated XX% For Tagger greater the subscription growth than of we $XXX.X full to organic the in revenue are systems million XXXX, year continue million. The expect revenue range revenue Sprout and to $XXX.X growth.

basis non-GAAP range annual For $XX year This $XX operating roughly XXXX, XXX million. income to improvement the million full operating of we margin non-GAAP implies the expect in of points.

average non-GAAP $X.XX, of common We shares income net per XX.X between and $X.XX weighted expect assuming outstanding. basic million share stock

that, are any take your Justyn, With and I to of happy questions. Ryan Operator?

Your from [Operator the first question line Instructions] comes Raimo Lenschow. of

Raimo. an to quarter. now get want on Frank I that just see update regards and last follow-up. and Could macro of the you the seeing on we last to a some issues from quarter? I had on double-click you're in what for is This in the could specifically just pipeline And if those fronts evolves to field relative how

I similar here. in It's really Thanks, This in does question. Yes. Frank. environment of it. things highlighted what some that the QX, a mirror appreciate prepared It's very the to saw I remarks we is Ryan. the

buyers those of on itself cycles. longer manifesting terms pressures are in there's in investments, generally, just things new think and some sales I

these seeing the for time from as steps process involved they're to, of in buyers you're longer folks what new and changing that decision-making processes stakeholders many So periods decision-making. are used in between

in -- we the to success job turn trajectory $XX,XXX building said team the $XXX,XXX. see the QX been Having and and of has a nice in that I it more we going execution, pipeline. and and the think progress that, up having really out could here the continued we've and the showed in data that you on the as And $XX,XXX done terms and the as

longer, our while and amount a we're to value we're serving customers the sales so products see healthy in for And for demand that are of today. with products us, cycles continuing

for maybe Joe. then And

Studio off there's in shot guide in half Just past, second that you if want we larger Social that. embedded I in have as to closer clock anything for QX. about up being the guys grabs talked ask ads for just to potentially going the get

Frank, or As we the see there? to where specifically, like related headed for what business are far looking as, color that guidance, you

you guys of the embedding the Right. in to what guide guidance, Studio. Specific for Social just are sort

Yes.

there's So really Frank, Studio. fall-out side, coming into out for similar strong like called on We're kind out very of we the guide What as is that haven't QX. of that you momentum know, especially say we historically seeing separate a I could But any built had Social the Service we and on gave I we had year Cloud guide what seeing the would Ryan coming Frank, out in he's change when in side, kind front material of on let QX. chime what I'll in the say full line. on not in baked

Yes.

about of I think quarter, in and and the into front in in that the bit see on with of Service things Studio webinar good the newer and the execution we'll a around Salesforce opportunities customers with announcements only Cloud, for here, partnership overall Head right thing partnership, specifically good progress some was with on I'd this last and morning, the seen working more even on us add introduced really talking and that head is some with had the we Cloud. progress opportunity a this now of Dreamforce. little into Product XXX to of work to have as we're about healthy visibility Service amount pipeline Actually a I continue we the Social we're that

next question the of Your from Hynes. comes David line

compares in question the about I ask kind that I perhaps the coverage QX. coming the would you a into of answer. could glean QX, of year. I you year look, and But we bit ratios prior half to this how little can is out another normally Ryan, heading what talk expect back of mean, really pipeline was about hoping the turbulence or to given bookings

it's get your case. to in thoughts. I'd love think this I fair

question. the No, Yes. appreciate I

seen the pipeline things. ratios created the we've coverage highest to We more the pipeline of some than sales ever ever everybody are And quarter. better, with we've be we've environment I think had. pressure today here, times and the the cycle great within in actually ratios is on created this some Our seeing need

initiatives I go the time our great the job customers customer-facing to give sales and our make They've of organization. front amount building that increasing organization we strong increasing we're credit done folks a the to sure of that in have in of and and a out marketing really lot demand.

way before, And pipeline is the confidence of had we've so with to half about this around us a we're larger than lot expecting half best heading think which the team. a the back back we're ever into that gives from this performance

Yes.

talk 'XX Okay. had pricing model And was of then late chance cohort you maybe one Look, as in uplift think just escalation. the be been introduced a to feedbacks of I new price assume customers layering the you've about customer How under that What Anything those of do renew annual in elements renewal? of terms. there? Can along would you helpful. the the a going price lines the were kind realized small growth follow-up. aiding that that about those forward? of at have you

probably I is our about point just with Yes. just we bit it performance little -- to I a remarks, retention. mean talked our back revenue gross prepared think in there I'd

continue We think us. getting are of in renewals and customers. certainly even which to trajectory those that really on many lapped to I there the this of We've strength the see customers market, annual speaks our from the good our value products

the the customers were majority of were we the actual digit on especially typically. increase through, those that went for annual folks again, And single that contracts, the

experiencing. terms were in there what they So increases are of not material

of nothing So out terms in variation there. call to

in is those and well decisions. the contemplating that you you're pricing we value market a move the we're think something that those delivering. uplift this is we looking things that As forward, constantly -- make we in we're when have in But at where with that making a as aligned pricing about just it's generally higher like certainly sure

move it we're how there So nothing we else share as to forward. about thinking in

the comes of from Lane. Parker line question next Your

I of any Ryan, changes that feel on those last verticalization to piece, particular you some talked quarter, that changes strength there one to you this the teams. the do How year? to those market, specifically the areas being know about seeing? is And you made guys that business impacted of verticalization point go through have of you're

financial No, customers public I sector. mean talked could The the that been helpful The it those for of reps ramping changes services some question. see nicely. about today across the appreciate represent health are care we I have and Yes. and that us. in verticals you

language The biggest learning in wins us of in nuance and the and nuance specific that cases groups from need exciting been possible you and to you're position just and to thing the I'd the make oftentimes, terms highlight associations some the of best for aside is the in logo the very that's sure the pipeline align to build and the use that execute. with

we've done forward similar progress opportunity and pipeline to really so nice pipeline back And the on seen our has there. a And commentary the we're in of again, that to building bunch against. a some executing job the building really half, team good looking

Got the a to then maybe makes bit back it. to dig pipeline And circle little sense. deeper. That and

potential it If areas? pipeline be is case, across Or by that influencer the it still those PR, marketing, level it, there pretty any marketing, care, use particular you call seeing down break you're subsegment different there is strongest?

most We've of demand seen a healthy across amount those of areas.

if rate. if up to one the was But continued it's customers example. so products, that the came this was module that much sophisticated the premium us, customers of socially you think the I leading about care success these many that are that are pick probably a consuming in and attach is they're perfect because our way, our fit so customer And for of within

able X respond nature, that's about when to for things things pressure that, or public and have make it your these lot And those looking on, to are customers viral. of of comments to to those When all your your it, before Facebook that brands sure tends and intensity of in up social and Reddit they're your it's care it. -- or a quickly pile in are others or becomes where on you around something a over there's first that it they're support, be Instagram on lot go very and think one on customer logical be is

we're That's more of them their amount and there. top on On customers more social. to of engage of customers that, happening and customers just where their seeing with volume a significant expect these having are,

value for working the highlight I'd So cases fantastic of done that use delivering. a have innovation product terms that's job really, The product been teams us. in of have the we're as that that one successful that on the been just really and

last to is there's about very I that, in to is a on, one critically because needs social It intuitive. learn Maybe been lot DNA that's that be on aligned is customers. that needs especially to in why Sprout, that which product, perfectly being is, that think really for so important here end of customers. the product customer And it's that responding users be important think is the easy you ramp if just you point to be care, to with up very at fast and and need and appealing care,

from comes question next Bhatia. Your of line Arjun the

right whether other consider, up for that priority might one can terms as market just you're it's you've others, if it's with. their buyers list. customers or any towards outpacing of service start out at well. you, what and a curious whether curious this that how budgets domain of in core in how now and moving terms CMOs plate to the application you out if social have here. is of year social play on of think there's I'm certainly end their the to the seen and point of down presence over I'm But lot rest prioritizing of kind certain whether are I I and your change observing the Ryan, know

Yes. Arjun. Thanks,

a is responsible have this. And we in cares social environment, this, of and on for not, of about in need a Flavor who's But case you marketing care. and experience one profiles which or you touching whether be to there. care customer you're there's pretty terms if the engage on there lot think much leaders you. flavors to that. volume what social is your just customers customer is anybody couple going with social, this on the interaction And to I be for are are to everybody, your about of customer and trying

a to And that it all those has capture need places these fast. in interactions Reddit able expect you to to enable your respond And to customers oftentimes Sprout the and CRM, programmatically like to example. different to for platform ability like minutes. And be leverage you to responses

is And out. one definitely so that's thing standing that

paid, From last having stood these use marketing organic, a they're i.e., you case, budgets think campaigns and we're out when that of have better cut just social And you value they're In staff for areas, in one many that paid performance about of really in you're seeing like the over the marketers, social cut and It's and looking the really channels the the right? organic. creative about things certain spend. that's against. executing so is when places, while the little of on a

certainly making spending and which campaigns that the customer on perspective see and data business they value that reporting working. the the from really we're customers are So new get sure perspective, in a a true

our might And that then gives campaigns in have we have the that well. more might doing what's organic really boosting, so mean putting performing That on paid been campaigns of be it. you paid your working more can mean you're well again, you're amplify or that really it behind dollars you're might some platform organic even ability reporting because reducing to see and though you both you Sprout,

And are Tagger on then one last that highlight So just a couple those of things I'd marketing. there. and influencer one maybe

idea influencer But types new we growth. think another think think of example and years people of flavor celebrities it's -- more we that. and endorsing a where the products, years and I and is of certainly been this if as of a the area about for is years it who of

don't what audience. we've from very overlap influencers the perfect lot with their And is oftentimes customers of have our a seen expensive so

They're need. amount return getting of and they budget spending a the that not significant

do your spend more conversations you of optimize a been lot influencer how campaigns strategy. So having your a and we've around localized with

can group I'd returns ROI you, it's So you're that highlight about better making. across on cases, many this drive all investments how the and in

kind activity from Sprout change you social if That's out happening maybe any were X concentrated value what's when about customers, at your whether Perfect. another social kind of then that. your X getting was with networks, across all the know are which one, just super zoom in of obviously, unify you is position landscape. there's I hear right? ago I the to helpful. us and in active to networks proposition at And I that But If they more changes would are more any seeing or curious be activity there, look years all? than and think

customers vertical you the much so It about really working dependent if every And globally. with think industry we're and -- the is pretty it, on the XX,XXX-plus that brand across and business with. it's we have benefit working of

that of LinkedIn. different social that lean organizations is many they these BXBs will be into. networks so on what means so And have more

You'll to that see tend be more Instagram. retailers on

who folks on see are TikTok. You'll

type of to it are. customers that tends their highlight brand the actually be and I'd where So dictated by

TikTok. more Threads, And as well. recently, been that's of see continue been like our things gravity that's we something to with introduction the really of Certainly, for around lot customers a interesting

that For us, is it though, strategy. -- they with you're when unification opportunity prop value know the Like all have complexity Sprout, the comes in to customers ability individual the invest to their right. and that against they the the the for these execute of things,

Your next Hotchkiss. the from of Adam comes line question

you being around much at turnaround your up team? about you learned factors? just I maybe about as just I'd view a the talk And do come last previously. follow earlier just versus growth sales the the some reps more on know you those here could called of bit needs question. an sales to of want your control some what team to over the think on how macro-driven little changes just I pipeline macro, Ryan, you've on what when But look how the growth turning and X or you've versus just on you you've out just Great. through be these issues. side reevaluated ramping months curious as in

Thanks, the think here I control, we lot a -- I that your few lot. question us, Yes. in there's is internally for controlling we is a think mean that controlling about Sprout, about right? can which wrap-up what at things a something Adam. we talk And

think for our about customers. just overdelivering we One,

which So showing more up showing the in think about knowledgeable, faster, differentiate. thinking we about up ways we

rates this from especially to pace clearly So customers. our has us for been it to our has be have products new us helped differentiated that of a new we problems these win accelerated position, something and with and with has innovation able product in put solve that us

certainly Getting been larger. has us need closer the to theme for pipe know a ratios in be well. to that today's We environment, coverage as customers

been going perspective So been evolve of amount initiatives organization. we from the to in be front the also a opportunities time. And really to that biggest sales have pipe getting continuing and across gen customer-facing increasing we've maker. is We've of those marketing our the difference

up in ever $XXX,XXX. the the showing they us, are single sign our these before chance higher. know And gross to And every look so in contract and in getting as the feedback. customers the team a been with interact us, great to It's for the get we're level of it's with our things, it's better efforts And we day, that our not products been is providing then a feedback. continuing oftentimes we just at in retention never that $XX,XXX,

innovation of the sure differentiating pace then the making continued ourselves in show customer-facing when market. continued underline, that really time terms I'd just and up, on else in we from everybody yes, increase we're product, of So

on they you business we I relationship. just helpful side? versus How about the And could touch Okay. Great. go-to-market should coming being if would broader of how direct? guess are helpful. That's really then through think I the And the mix on love Salesforce partner

Yes. partnership be that The grateful and really something we're to enjoying. continues really for we're

focused today I webinar on Cloud, was Service with Head As this Ryan XXX had AI. on Service and we Sprout was our at Cloud customers of mentioned joined that and morning, had and that very Nichols, in I the Product

base. deals to We've in value integrate been Salesforce our still sure entire would make nature. the team. getting find direct are to support these going ton lot with customer of a the in opportunities continuing of adding and across products consider a very jointly Salesforce I We're that

in we're our signing team, Salesforce own go we paper. When on with the

other, we each We are are helping individually, these closing but accounts.

platform, got this us, And other integrations customers. and add we've grow great reinforces example, to Tableau have with certainly able be their product we and in integrations we of for of like Salesforce the one to share ones to products value go where and those together, person it, through it it's to Salesforce some so their the where for Service it's Cloud. When oftentimes Slack, more wallet of enables these combination

the And it adds to customer getting view. in more value that XXX-degree

and as So our sharing it's been customers to joint with continued going will positive. together. really little we're about those more the see made the be there, that Dreamforce that And more have at well, then about a that us sharing product you'll for progress we've innovation bit

next Your question from Ader. the comes Jackson of line

the both have on X Great. changes. they're actually go-to-market questions and I

decision-making of settle environment pace is slower the helping macro actually that actually sprint? in, new maybe you giving changes you're full-on in these in while a to possible in that roles, people that on it the is sense verticals quarter people just needing than due time is, to the it's the made rather new the geographies first The changes or make to in first new

that's in we some probably the QX before talked control I well. thing, that of also can combination things of bit important little on us a was wanted worked impacted had and things just a not think last quarter. and to enablement. don't And mean we that what the and this this clear highlight really mean term. QX in folks of first then I quarter the that the felt things on I so we investments as controlling those talked I some of accountability of but terms many to the vertical would No, changes the we really about be Jackson. But for long out we in our really in that into year, strategy about with shared so. coming I tied some think I as

And as macro helpful the don't I'd characterize so changes. lower that I to know environment those

Yes.

pipeline, would you've Okay. of the third the ink kind might we on where a of year the as that that to the but fourth get that right, paper so quarter. changes start be come you -- just and highlight That how build, we as then What this sense. into made a quarter are you to help fourth good makes actually of some kind head the all-important that it's the for first close first pipeline will to time follow-up, as thing, And the enterprise?

the got for the across certainly, just while, than is, of more Fortune named executed the even we've think I had we've this I logos. past, some lot selling I a customers And pipeline of team has we've quarter. been them we created If calls here today we've thing these pipeline But about more a think before into a bunch we Yes. well. logos first right? that XXX in the on incredible about have as talked these we mean

constantly we're things it's and right our that our are and pipe But that sure things the AEs in in activity of before, progression that sure in in the that leaders. I dynamics the in make that have we're in stages at the at way constantly pipeline of customer-facing for velocity enough that to the we executing looking we're that there's pipeline to referred changing the focused ensuring field on across looking really that us, direction. seeing the making terms the well, really, happening time movement and between We're right and and heading

those for The that and us to side us just sure organizations. team, piece having time to continue our and amount for customer about a pressure lot to have at healthy both connectivity right a other we've certain side good is for make think on sponsorship, outside intention customer close reasons that to the our period. within and executive importantly, the is continue of making sure right right? we're We velocity, then but the the And sure the we inside just on making got that more

for value product product backdrop the is fit. prove trial, us, of the a helpful that the of and another so we're for to perfect thing And the example, the and having help customers in

team things we're year is the that go executing strong. to all are into going that and So that making sure the those finish ingredients

comes of Elizabeth line Porter. the question next from Your

the at And I year-over-year Great. that is at to wanted looking of cRPO-based growth. suggests that it for And kind dig when and look mid-teens both QX. cRPO-based cRPO metric number, growing bookings on we XQ bookings growth. in another that has been

confidence bridge And some I in rate grow what we're what be bookings on the the hoping So growth drives could those growth low of making revenue the faster revenue? to what factors seeing of was get on a side? XXs to kind than cRPO-based

this is Elizabeth, Yes, Joe. question. the Thanks for

the the the to and out I balance RPO think, were were of reflect cRPO in first, the with call kind know, just of consistent of you quarter. made last accounts. just we these what our amortization of -- that I the numbers line of want metrics expectations, these And sheet seasonality primarily guidance as

you As year. we to in to going in QX, these in added saw And become that the heavily enterprise so last more metrics QX, most naturally weighted value you're see right?

and that continue anything very in the would And in seen so back to change we dynamic end. contributions haven't that see healthy this expect you'll XXXX

in couple of the of dynamic this a this then up going see quarters, the over half. just how it's amortizes back first pick to you're and think I So

and How around versus Got those it. larger a much greenfield But the sense a And environment a with then it wanted competitive logo displacement to I you're expanding get at is as little noted as Or switched much to competitive larger it great for increasingly follow-up. just greenfield? customers. just opportunity? looking more as still the portfolio of wins. bit displacements? customers, a is is You some

healthy now. I I balance say balance. would Yes. It's it's mean healthy a a right

in about talked this early on within past this we so Just are call. still the generally, market, and it we've

customers that and shared they platform the of we've Sprout many have these a that are like So things before didn't logos invested.

use opportunities all today. might sudden, or things that are the platform in and that their been in find to on Oftentimes, a manually department and that they is that hitting them of including go of a and we'll a complexity to and a into not the because then like-sized coming customers or get also volume where win trying level we'll needed. and they've a even social needs, case And there's do be also a other bigger enterprise, of even bunch are division solution having are

those -- opportunities. it's So see both as big really we

Certainly, that the perspective gets from team is something excited a competitive displacement about.

team the team that better can serve best product We in our and market, customers. is are strong the one believers and #X that the our is

the just of So of proud really we've seen a this we execution lot that the saw team. quarter, from in opportunity

of line Your next Matt the question from VanVliet. comes

than on kind retention drivers? on usage, it? just you is channels at that forward. beta, think going talked on that more you're how then of I how curious newer you How when that much of net into rather or we that's tying about look Just you more whether should Reddit TikTok, guess also this stickiness the as a monetizing of about supporting, revenue balance some about think these Threads or

add value it's come really as monetize dealing Yes. new with. the a is value indication I in this We they much directly of usage real the customers. We -- networks complexity of for in, see do for as but an appreciate the don't very and customer it's that the question. terms and adoption us

respond stitch might of platform. on their them the the what The people able give to be it for all customers harder they that seeing to more to and able manage. need coming them, to Sprout data. this And ability understanding saying are they things on are to to do and them together that networks something to the engage be really customers to the with like information are there's where these siloed, be a is all And to because platform

maybe understanding It'd be to that competitors their exist, differentiate. understanding are what doing opportunities may

something much So see we usage and more that very and adds as it adoption value.

for so we've over that teams, valuable really so with the And way years that partnership up. the are specifically relationships and networks really many shown And developed product our teams we've us. the the these us, have XX-plus of for been of proud

first actually the products. at front customer full that line for comes typically of We our one the are or these and base with that are out, any companies goes typically across live beta of we alpha the

feedback great we've because from social and differentiator massive that for networks a just of is customers got at time the to over that execute ability so our scale. And

or mentioned you year-over-year it's actually of sort that's based then an is right And helpful. Tagger ARR on rates Curious now. basis? fastest-growing Very sort if product right. growth All the added of just percentage on

new on And you're then seeing versus sale first or of seeing that that down expansionary customers rate attach maybe of the net the more you're sort of buying importantly, being kind road? Tagger what's the second

but in continue percentage, say how I -- that's strongly for Today, of in. first given our if is time, the modules think most or us, added it's I see would it's to we'll Yes. terms just over product second, product, that of just would interesting. be one that imagine important growing I pretty it well being compete as it's

that might Sprout And be touched going we this a core the and seeing or little we the we're script. reverse of are opportunity accounts, kind third on necessarily they've have customers as the turn into certainly in had, to well. customers first into But not in additional it bit And it product as fourth. the these oftentimes, Tagger

us have So there's these a conversations able lot around Tagger. of in terms for to of being optionality

in most because on companies something doing that just or all execute they're like it, if platform enable to a manually. And area you scale, this on it's you we they're aren't And the it have to and able a going able need if doing seeing want an to interest ton Sprout be today, you very together then it doing are efficiently. strategy influencer that need of to you at data and to be pull that's scale to programmatically execute

question comes the Brian Schwartz. next of Your from line

it what ask between between versus logos everyone to guess that at days. the sales I you're cycles the just question But these Ryan, cycles about all Yes. new vary expansion elongated wanted a seeing the I with business? does sales is seeing you

expansion mean new the I time, would. business to at it generally, on Yes, the take than any side. Yes. longer tends

when say relationship a those be typically of to while. with from current many a expansion sense standpoint, tends for would for it so it, we've that I longer them into an had dig that there. And customers our make And you in

using lot of it. They've products are seen success, success the that typically a from

analytics turned have PLG-type example, see got day, within or we've for but might, don't Sometimes it approaches the product. platform in on. the every listening They

probably less to awareness credibility opportunities trust are time. education and then those over build So there's and and where

would is faster new I on versus it business. that generally say So expansion

those wanted the difficult terms then Maybe where today the out is the to is it's today ask to headwinds because in that are company ago? question a in where ask started that or a go-to-market of macro the I there. But been you've you follow-up business go-to-market just question optimizing terms on. feel of that of transition about that company you Okay. And the is the do changes embarking you year

made changes customers? sophisticated Brian, focus a you year our we execution the ago, just specific on say when And to more and

or to a don't more Yes, optimize but just analogy. market. not and on moving much initiative that side up. much up, there's kind it of be I'm how how will on and the if product the you mark side, move more up further wondering the know side sales think just I distribution the baseball

make changes products. enabling are new talked a it. bit we Got One make so mentioned I the I I of want business, changes year. sure given things are just QX And got thing many that helping Yes, clarify to any well. but Yes. in into be as And on we a about on would there earlier little that that or verticalization today, it. go whether scale

we've seen, passing we've The that been move into the of because of with doing accounts opportunity for those a the of and year, that because right behind the in enterprise years. our quite is exists still investing Certainly, growth opportunity and the the few each we've something front seen of of with a degree we've been that us, to high see certainty opportunity within win. we that

told do day. that we're and better have that. will history and this grow to you You hear we time, you I get always quarter-on-quarter, of we every have optimize, single me think the about and to expect to to through room say if continuing Even would

We continue on our to innovate initiatives.

people our coaching adding we're that up talent. ensure to continue and We great

team time. I'd execution we've over that So this great us, from seen for say

We to is going and this have continue more deliver. capacity behind it, and we out team go fully to expect that

the from comes of Thind. next line Your question Surinder

the terms to full new of of people we just -- kind see productivity? should the you think run a as sales we How able look expect of up do out? Obviously, performance sales responsibilities. following of force prior kind are quickly should of be go-to-market and to in When positions, the terms to around shifted about we rate of should new they How questions where the we on the get you've force? into in perspective strategy. Just set productivity

back course in we going ramp positive very of by enterprise faster to in half. reps how the increased mean and so tend expect time, to be investments deals the that that but much the into natural close associated from And pipeline do that we're the to that heading much to Yes. and productivity back we've reps, segments over the year. are productivity quicker the than sales has the to segment. here enterprise have the much made that see we've I cycles Certainly, anticipate built. changes half with We productivity changes a in perspective

point sales force? what within does head At guess count, capacity I count, then think perspective? about And you accelerating those kinds the it. do changes from what head a that of Got mean

to us, capacity. marketplace, determine in front great opportunities feel pipeline in that the win we if front in of the equation at rep about look investments we're the we're we at addressable we right that mean of that about I at the When constantly we seeing to Yes. the we're data great make that that the we're sure we that the looking have to us, looking have see we feel making, constantly of type market productivity.

myself finance metrics and go-to-market from we're about on this invest be -- we Our opportunities how the pause the between and investment. typically, productivity more But across happens an our organizations Joe and might looking to see constantly, there are feel planning organizations, to where or perspective. annual and

to the year see the we've fluid things we investments as we we're good in that back the going anticipate here these that our increase made business. and through are productivity that that think And So really and capacity feel are half. we pretty we about this about have, the that

and with and like go-forward on the So steady you've depending of state basis it pipeline are terms made the wins how year-end, and then the all kind you'll from metrics to it's on reevaluate perspective, forth. so a a in shaking changes sounds maybe out planning closer of

fair of a generally as go Yes, assessment we goes execute and how how planning that's we'll 'XX. our into

there Mr. questions, more over will no turn the now conference Since are to back I

Howard Please closing ahead. remarks. Justyn go for

so and Yes. much. all discussion. Thank you of questions I the appreciate

to to moving grateful our talk very this perspective are the be able We through progress and on forward. business

our have the that busy we're making. great time progress I evening. I I is We'll time. spend in for this hope coming a days has a know you We the job, want more in for have particularly team every in done we're specifically our a day customers and to thank team -- to now, and show conditions done and continuing the up weeks. deliver that seeing tremendous I all you And to and appreciate all. evening with for has and everyone everyone's

concludes that gentlemen, all and for Thank Ladies you joining. call. today's

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