CHICAGO - Sprout Social, Inc. (NASDAQ: NASDAQ:SPT), a prominent provider of cloud-based social media management software, has announced a leadership change set to take effect on October 1, 2024. Ryan Barretto, who currently serves as the company's President, will be stepping up as the new Chief Executive Officer.
The announcement comes as Justyn Howard, the co-founder and current CEO, prepares to transition into the role of Executive Chair.
Barretto, who joined the company in 2016, has been pivotal in scaling the business's annual recurring revenue from $30 million to over $385 million by the end of 2023. His previous experience includes a decade at Salesforce (NYSE:CRM), where he held various leadership roles while the company grew from $180 million to over $7 billion in annual sales.
Howard, in his statement, praised Barretto's leadership, integrity, and commitment, crediting him with being integral to Sprout Social's success and growth. As Executive Chair, Howard will continue to work closely with Barretto and the company's board of directors and executive leadership team to advance the company's strategic objectives.
Barretto expressed his gratitude for the opportunity and underscored his commitment to the company's people, products, and customers. He aims to build upon the existing foundation to deliver increased value to the team, customers, and shareholders.
Sprout Social has established itself as a global leader in social media management and analytics software, serving over 30,000 brands. The platform, which offers a suite of services including publishing, engagement, customer care, and AI-powered business intelligence, was recently named the #1 Best Software Product by G2's 2024 Best Software Award.
This leadership transition is part of Sprout Social's long-term growth strategy. The company has made it clear that the information provided in this announcement is based on a press release statement.
InvestingPro Insights
As Sprout Social, Inc. (NASDAQ: SPT) gears up for a leadership transition, the company’s financial health and market performance remain critical for investors. With a market capitalization of $3.12 billion, Sprout Social is trading at a high revenue valuation multiple, reflecting investors' confidence in the company's growth prospects.
The company's impressive gross profit margin of 77.14% over the last twelve months as of Q4 2023 demonstrates its ability to convert revenue efficiently into gross profit.
Still, the profitability of Sprout Social has been a concern, as the company has not been profitable over the last twelve months, with an operating income margin of -19.48%. Moreover, the company is trading at a high Price / Book multiple of 21.54, which suggests that the market has high expectations for future growth.
Analysts are optimistic, predicting that the company will turn profitable this year, which could be a pivotal point for the company's financial trajectory.
InvestingPro Tips indicate that while Sprout Social operates with a moderate level of debt, which could offer some leverage for growth, nine analysts have revised their earnings downwards for the upcoming period, signaling potential challenges ahead.
For investors seeking a deeper dive into the company's performance and prospects, there are additional tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/SPT. Use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of insights to make informed investment decisions.
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