Sprout Social Inc. is preparing to go public with the goal of raising $100 million.
Founded in 2010, the Chicago-based company provides a platform for businesses to manage social media engagement, publishing and analytics. It has raised a total of $111.5 million in funding over seven rounds, according to Crunchbase. However, it has incurred net losses since inception, according to paperwork filed with the U.S. Securities and Exchange Commission.
“We incurred net losses of $21.9 million and $20.9 million in 2017 and 2018, respectively, and incurred net losses of $17.0 million and $21.0 million for the nine months ended September 30, 2018 and 2019, respectively,” states the form. “As of December 31, 2018 and September 30, 2019, we had an accumulated deficit of $68.6 million and $89.5 million, respectively. We have never achieved profitability on an annual or quarterly basis and we do not know if we will be able to achieve or sustain profitability.”
Sprout Social reported to the SEC that it has experienced rapid revenue growth in recent years and has grown from nearly 19,000 customers in 2017 to more than 23,000 customers across 100 countries, as of the end of September.
“In 2018, our revenue was $78.8 million, an increase of 76% as compared to our revenue of $44.8 million in 2017,” the form states. “For the nine months ended September 30, 2019, our revenue was $74.6 million, an increase of 32% as compared to revenue of $56.5 million for the nine months ended September 30, 2018.”
The company added: “We are still early in the global adoption curve for social media solutions, which presents a large opportunity to capture market share in an underserved and growing market. As we invest in acquiring new customers, we expect to continue to develop our presence in international markets, such as Europe, Australia and New Zealand, to address this large opportunity.”