Investors must be able to afford the loss of their entire investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. The company has grown its customers at a 15% CAGR over the past two years, with growth of 36% total annual recurring revenue, seeing the value of those customers increase as Sprout moves up market and layers on premium products.Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. We are attracted to Sprout’s recurring SaaS model, which is 99% subscription, cash rich balance sheet, and strong returns on growth investments. Salesforce’s decision is a validation of the company’s platform development efforts and domain expertise and provides an installed base of 4,000 large customers for Sprout to convert over the coming years (end of life for Salesforce’s product is 2024). (CRM) recently decided to sunset its product and exit the market (following Adobe and Oracle), choosing Sprout as its preferred partner. The recent TikTok integration highlights the company’s speed to market and leadership in the space. Further, Sprout’s deep, integrated network relationships are hard to replicate, and provide the customer ease of use of the product without having to switch modules. Sprout customers typically spend four to five hours a day on the platform with an annual contract value of just around $7,000. Sprout’s home-grown, single-code base enables the company to innovate and deliver feature enhancements to all customers at once, a distinct advantage versus others with customized codes, heavy professional services requirements, and long sales cycles. Recent account wins include IBM Watson, Department of Labor, and Kraft Heinz (KHC). The company serves 32,000 customers across 100 countries, and 90% of the leads are inbound with a 30-day free trial, which highlights the value of the product. Sprout continues to differentiate its platform through its clean user interface, easy onboarding process, and single code base. Sprout is the solution to consolidate and centralize the complexity of social channels into an elegant, integrated platform that can be leveraged across an organization. Sprout’s industry-leading platform empowers businesses of all sizes to leverage social media–Facebook (META), Twitter (TWTR), Instagram, LinkedIn, Pinterest (PINS), and TikTok–for marketing, customer care, public relations, business intelligence, and collecting product feedback, among other use cases.īrands are increasingly going directly to consumers as more products are purchased online and through social platforms, and recent developments around first party/IDFA are likely to augment this trend. provides cloud-based social media management software. The following segment was excerpted from this fund letter. recently decided to sunset its product and exit the market (following Adobe and Oracle), choosing Sprout as its preferred partner. Sprout Social serves 32,000 customers across 100 countries, and 90% of the leads are inbound with a 30-day free trial, which highlights the value of the product. Baron Funds - Sprout Social: Recurring SaaS Model, Cash Rich, And Strong Returns
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