Sprout Social Announces CEO Succession Plan

Rhea-AI Summary

Sprout Social, Inc. announces CEO succession plan, with President Ryan Barretto set to become CEO on October 1, 2024, while current CEO Justyn Howard transitions to Executive Chair. Barretto, who joined in 2016, has played a key role in the company's growth from $30M ARR to over $385M in 2023.

President Ryan Barretto to be promoted to Chief Executive Officer, effective October 1, 2024; CEO Justyn Howard to transition to Executive Chair

CHICAGO, April 15, 2024 (GLOBE NEWSWIRE) -- Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced that President Ryan Barretto will become Sprout Social’s CEO, effective October 1, 2024. Co-Founder and current CEO Justyn Howard will step into the role of Executive Chair.

Barretto joined Sprout Social in 2016 as SVP of Global Sales & Success. In December 2020, he was promoted to President and was responsible for GTM operations including Marketing, Sales, Customer Success, and Partnerships. During his nearly 8 year tenure at the Company, Barretto has served as a trusted member of the executive team, helping scale the business from $30M ARR to more than $385M exiting 2023. Prior to joining Sprout, Barretto spent ten years with Salesforce in a variety of leadership roles as the company scaled from $180M to more than $7B in annual sales.

“Over the past 8 years Ryan has become the backbone of our company and the clear leader to take us through our next era of growth and innovation as we scale our business to $1B and beyond,” said Chairman and CEO, Justyn Howard. “It’s rare for a founder/CEO to work with someone who so clearly complements their strengths to make a transition like this possible, and we’re both thrilled about the value we believe this will create for the company. We wouldn’t be where we are today without Ryan’s leadership, integrity, accountability and commitment to our team and our customers.”

Over the next six months, Howard will work closely with Barretto to transition CEO responsibilities, ensuring a seamless transition of leadership. Then, as Executive Chair, Howard will continue to work alongside Barretto, and Sprout’s board of directors and executive leadership team, to further the Company’s most strategic objectives.

“Building this company together has been the highlight of my professional career. I am incredibly grateful to Justyn, our leaders and our board for their trust and confidence in me leading Sprout through our next era of growth and innovation,” said Barreto. “Our success has been rooted in a deep commitment to our people, our products and our customers. I’m excited to build upon that foundation as we execute against our vision and deliver more value to our team, our customers and shareholders in the years to come.”

About Sprout Social

Sprout Social is a global leader in social media management and analytics software. Sprout’s intuitive platform puts powerful social data into the hands of more than 30,000 brands so they can deliver smarter, faster business impact. Named the #1 Best Software Product by G2’s 2024 Best Software Award, Sprout offers comprehensive publishing and engagement functionality, customer care, influencer marketing, advocacy, and AI-powered business intelligence. Sprout’s software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” “intend,” “long-term model,” “may,” “might” “next era,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our $1 billion revenue target, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market and economic conditions, such as recession risks, effects of inflation, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and impacts of ongoing overseas conflicts, could adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; and changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024, as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current instability in market and economic conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting "Email Alerts" in the "Shareholder Services" section of Sprout Social's Investor website at https://investors.sproutsocial.com/.

Social Media Profiles:
www.twitter.com/SproutSocial
www.twitter.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact

Media:
Kaitlyn Gronek
Email: pr@sproutsocial.com
Phone: (860) 309-4550

Investors:
Jason Rechel
Twitter: @SproutSocialIR
Email: jason.rechel@sproutsocial.com
Phone: (312) 528-9166

FAQ

When will President Ryan Barretto become CEO of Sprout Social?

President Ryan Barretto will become CEO of Sprout Social on October 1, 2024.

Who is transitioning to the role of Executive Chair?

Current CEO Justyn Howard will transition to the role of Executive Chair.

How long has Ryan Barretto been with Sprout Social?

Ryan Barretto joined Sprout Social in 2016.

What was the company's ARR when Ryan Barretto joined?

When Ryan Barretto joined, the company's ARR was $30 million.

What was the company's ARR in 2023?

The company's ARR was over $385 million in 2023.