Sprout Social is now a public company of December 13, 2019. This company basically feeds on the data firehoses of social media companies to provide insights to customers. As previously reported here, Sprout Social will essentially be at the mercy of continual access to proprietary, non-public data to keep its business flourishing. The company’s opening day IPO closed 2.4% down, after initially spiking as high as 8%.
A very likely reckoning to come will be the pressure to become profitable – a reality now hitting many high-growth tech companies. Sprout Social reported revenue of $74.5 million in the first 9 months of 2019, but also a loss of $21 million.