Executive Summary

Q2 2025 delivered steady top-line and stronger profitability: revenue $111.8M (+12% YoY) with non-GAAP operating margin 9.2% (~+400 bps YoY) and non-GAAP EPS $0.18 . Revenue and EPS were above S&P Global consensus, driven by enterprise mix and premium module attach; cRPO and total RPO both rose 18% YoY to $251.6M and $347.0M, respectively .
Management raised FY25 guidance on the back of the NewsWhip acquisition and execution, while introducing Q3 guidance: Q3 revenue $114.4–$115.2M; FY25 revenue $452.9–$455.9M; FY25 non-GAAP EPS $0.71–$0.75 .
Strategic catalysts: acquisition of NewsWhip (cash $55M plus up to $10M earnout) to add predictive media intelligence and AI agents; CFO modeled ~5 months of contribution with a prudent ~$2.5M revenue assumption and near-term rep productivity headwind during integration .
Qualitative updates: strong enterprise wins (e.g., Honda, Cigna, Kimberly-Clark; several 7-figure and ~$900K expansions) and new products (Guardian, AI enhancements in Care and Influencer) reinforce ACV growth (+14% YoY to 15,321) and stickiness .
Post-quarter 8‑K reaffirmed Q3/FY25 guidance alongside CRO transition (through Q3 close), mitigating execution risk signals .

What Went Well and What Went Wrong

What Went Well

Enterprise momentum and mix shift: customers >$50K ARR grew 18% YoY to 1,826; >$10K ARR grew 6% to 9,517, supporting ACV +14% YoY to 15,321 and non-GAAP operating margin expansion to 9.2% .
Strategic product and AI roadmap: launched Guardian for trust/compliance and AI-driven Care and Influencer upgrades; acquired NewsWhip to bring predictive media intelligence and AI agents, with early interest among large enterprises (70%+ agent adoption among brand customers within a month) .
Large customer wins underpin enterprise thesis: cited wins/expansions with brands like Honda, Cigna, U.S. Department of Transportation, Kimberly‑Clark, a global brand manager (7‑figure consolidation), and an ~900K expansion at a global health tech company leveraging Salesforce Service Cloud integration .

Selected quote: “We reported second quarter results with revenue of $111,800,000… and non‑GAAP operating margin expansion of almost 400 basis points… We landed strategic wins with global brands like Honda, Cigna, Kimberly Clark…” .

What Went Wrong

RPO sequential downtick: total RPO fell from $360.2M in Q1 to $347.0M in Q2 (still +18% YoY); management attributed the sequential step‑down to seasonality as larger renewals skew to 2H .
Continued GAAP losses: GAAP operating loss ($12.3M) and GAAP net loss ($12.0M) persisted despite non‑GAAP profitability, reflecting stock-based comp and amortization impacts .
Near-term go-to-market friction: management flagged temporary rep productivity pressure during NewsWhip integration and enablement, partially offset by raised FY guide given prudent revenue contribution modeling .

Financial Results

P&L Snapshot (Oldest → Newest)

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$99.4	$107.1	$109.3	$111.8
GAAP Net Loss ($M)	$(16.9)	$(14.4)	$(11.2)	$(12.0)
GAAP EPS	$(0.30)	$(0.25)	$(0.19)	$(0.21)
Non-GAAP Net Income ($M)	$4.9	$10.7	$12.5	$10.7
Non-GAAP EPS	$0.09	$0.19	$0.22	$0.18

Q2 2025 Actual vs S&P Global Consensus*

Metric	Consensus*	Actual	Surprise
Revenue ($M)	$110.94*	$111.78	+$0.84
Non-GAAP EPS	$0.151*	$0.18	+$0.03

*Values retrieved from S&P Global.

Profitability, Cash Flow, and Mix (Q2 2025 unless noted)

Non-GAAP operating income: $10.3M; non-GAAP operating margin: 9.2%
Non-GAAP free cash flow: $5.2M (vs. $2.5M in Q2’24)
Subscription revenue: $111.11M (+13% YoY); Professional services & other: $0.67M

Bookings & Customer KPIs (Oldest → Newest)

KPI	Q4 2024	Q1 2025	Q2 2025
Total RPO ($M)	351.5	360.2	347.0
cRPO ($M)	249.4	255.8	251.6
Customers >$10K ARR	9,327	9,381	9,517
Customers >$50K ARR	1,718	1,766	1,826

Note: Management commentary cited 18% YoY growth for cRPO and RPO in Q2; a transcript reference to “80%” cRPO growth appears inconsistent with the press release figures and is likely a misspeak/transcription error .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q3 2025	N/A	$114.4–$115.2	New
Non-GAAP Operating Income ($M)	Q3 2025	N/A	$9.3–$10.3	New
Non-GAAP EPS	Q3 2025	N/A	$0.15–$0.16 (59.0M shrs)	New
Revenue ($M)	FY 2025	$448.9–$453.9	$452.9–$455.9	Raised
Non-GAAP Operating Income ($M)	FY 2025	$40.7–$45.7	$43.1–$45.1	Raised (low end)
Non-GAAP EPS	FY 2025	$0.69–$0.77	$0.71–$0.75 (58.7M shrs)	Narrowed

Context: Raised FY outlook primarily reflects early NewsWhip revenue contribution (~$2.5M for the last five months) and ongoing execution; teams expect near-term go-to-market training to transiently weigh on rep productivity .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
AI & Predictive Intelligence	Expanded AI solutions; influencer rebrand; recognized by IDC; cRPO growth	Acquired NewsWhip (predictive media intelligence, AI agents); 70%+ agent adoption among brand customers within a month; integration roadmap outlined	Accelerating
Multi‑product strategy (Care, Influencer, Guardian)	New AI natural language in Influencer; enterprise focus	Guardian launched for trust/compliance; AI-driven Care workflows; brand safety and creator vetting in Influencer	Broadening
Demand environment / Macro	Steady backdrop; enterprise focus	Demand unchanged; pipeline healthy; renewal/GRR improving; seasonality in RPO acknowledged	Stable
Salesforce/Service Cloud & Care	Enterprise and partnerships emphasized	Deep SFDC Service Cloud integration cited (90K monthly cases for a customer) driving Care adoption	Deepening
International	Global opportunity highlighted	Mix stable QoQ; early innings but growing pipeline; leveraging global deals	Steady
Regulatory/Compliance	N/A specific	Guardian addresses data masking, blocked words, secure forms; EU hosting option for regulated customers	Enhancing compliance posture

Management Commentary

Strategic rationale, NewsWhip: “NewsWhip’s AI powered predictive media intelligence can help identify which stories and narratives are about to go viral… enabling early crisis detection to seamlessly flow to customer care teams working in the Sprout platform” .
Product innovation: “For Influencer Marketing… advanced AI‑driven capabilities… brand safety solution… new creator vetting… In Care, we introduced… Cues… bot integrations and AI enhancements…” .
Enterprise wins & attach: “7‑figure new business deal… consolidation… an almost $900,000 expansion… switched from a competitor due to overly complex workflows” .
Financial discipline: “Non‑GAAP operating margin of 9.2%… we remain committed to growing operating leverage on a fiscal year basis” .
Go-to-market/enablement: “We expect some near term pressure on rep productivity as we train teams, align our go to market motion…” .

Q&A Highlights

NewsWhip contribution & integration: Guidance assumes ~$2.5M revenue contribution over the final five months; the team is in early enablement, with product integration phased over the next few quarters and NewsWhip’s CEO now GM of Listening .
RPO/cRPO seasonality: Sequential RPO downtick tied to seasonality with larger renewals in Q3/Q4; management anticipates dollars “tick up” in 2H .
Demand and macro: Environment “hasn’t materially changed”; focus on ROI value propositions (social search, Care, enterprise multi‑year deals) with improving gross retention .
Premium attach / multiproduct: Building multi‑product pipeline (Guardian, NewsWhip, Influencer, Care) to land larger and expand within ~30K customers; significant headroom for attach .
Care & Salesforce: Example customer managing ~90K social support requests/month through Service Cloud integration, highlighting depth in Care use cases .
Influencer ROI: Management cited 5–6x ROAS for influencer marketing as brands offset higher paid search costs and SEO disruption .

Estimates Context

Q2 2025 beats vs S&P Global consensus*: Revenue $111.78M vs $110.94M*; Non‑GAAP EPS $0.18 vs $0.151*; 11 revenue and 13 EPS estimates contributed to the consensus .
Forward consensus snapshot*: Q3 2025 revenue estimate $114.86M*, EPS $0.165*; Q4 2025 revenue estimate $118.68M*, EPS $0.158* (for context vs company Q3 guide and FY raise).