Yahoo Finance Sprout Social (NASDAQ:SPT) shareholder returns have been , earning 29% in 1 year
Sprout Social, Inc. (NASDAQ:SPT) shareholders might be concerned after seeing the share price drop 11% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. Looking at the full year, the company has easily bested an index fund by gaining 29%.
Since the stock has added US$882m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
View our latest analysis for Sprout Social
Given that Sprout Social didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Sprout Social grew its revenue by 41% last year. That's a fairly respectable growth rate. While the share price performed well, gaining 29% over twelve months, you could argue the revenue growth warranted it. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Sprout Social is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Sprout Social in this interactive graph of future profit estimates.
A Different Perspective
Sprout Social boasts a total shareholder return of 29% for the last year. We regret to report that the share price is down 11% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for Sprout Social (1 is potentially serious!) that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
