- Social Sprout has a deep moat in the social media management space, effectively deterring even the well-resourced competitors.
- It has not only fast-growing but also high-quality revenue. 99% of revenue is subscription-based, with 41% organic growth.
- Growth will slow down to ~25% this year. However, we think that the continuing investment in go-to-market will reaccelerate growth beyond 2020.
In our view, Sprout Social (SPT) presents an interesting investment opportunity due to its deep moat in the social media management space. Alternatively, we also view Sprout Social as a social media CRM (Customer Relationship Management) play. Founded in 2011, the company has expanded its offering and acquired a strong brand reputation globally over time. In this first coverage, we take a closer look at Sprout Social’s competitive positioning and revenue model, in conjunction with its go-to-market.
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