Lucas Saraceno

Lucas Saraceno asked about the adoption trends of AI Assist across Sprout Social's larger customer cohorts and any early impacts observed on customer retention or expansion behavior. He also inquired about how the increasing mix of multi-year contracts (nearing half of the total) is affecting forward growth visibility.

Answer

Ryan Barretto (CEO, Sprout Social) reported positive trends for AI Assist, particularly with Trellis in listening, noting over 1,000 users and its effectiveness in generating insights from unstructured data. He expects this to drive value and adoption across the platform. Regarding multi-year contracts, Mr. Barretto stated that as these deals increase, the current remaining performance obligations (CRPO) will become a more accurate indicator of future revenue growth, with the numbers converging over time.

Lucas Saraceno asked how the increasing proportion of multi-year contracts, now nearing half of the contract mix, should influence expectations for Sprout Social's forward growth visibility.

Answer

Ryan Barretto, CEO, indicated that as multi-year deals become more prevalent, the current remaining performance obligations (CRPO) and revenue growth figures will converge, making CRPO a stronger indicator of future growth. He noted that while not fully converged yet, significant progress is being made.