10 unchanged sentences
Any such determination will also depend upon our business prospects, results of operations, financial condition, cash requirements and availability, industry trends and other factors that our board of directors may deem relevant.
−Removed: Securities Authorized for Issuance Under Equity Compensation Plans
−Removed: The information required by this item with respect to our equity compensation plans will be incorporated by reference to our Proxy Statement for the 2020 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days of the year ended December 31, 2019 .
Recent Sales of Unregistered Securities
−Removed: Between January 1, 2019 and December 17, 2019, we issued an aggregate of 137,762 shares of our common stock upon the exercise of options issued under the Sprout Social, Inc.
−Removed: 2010 Amended and Restated Stock Incentive Plan at exercise prices ranging from $0.31 to $1.11 per share, for an aggregate exercise price of $69,433.77.
−Removed: Between January 1, 2019 and December 17, 2019 we granted to certain employees and directors an aggregate of 552,100 restricted stock units under the Sprout Social, Inc.
−Removed: 2016 Stock Plan (the “2016 Plan”), with grant-date fair values ranging from $6.96 to $14.98 per restricted stock unit.
−Removed: On June 9, 2019, we issued and granted an aggregate of 434,436 shares of fully vested restricted common stock to our chief executive officer, Justyn Howard under the Sprout Social, Inc.
−Removed: 2016 Stock Plan, of which 192,281 shares were net settled to satisfy federal and state tax withholding obligations, resulting in a net restricted stock issuance of 242,155 shares, with a grant date fair value of $12.20 per share.
−Removed: These 242,155 shares of our common stock were exchanged for 242,155 shares of our Class B common stock in connection with our IPO.
−Removed: Between October 29, 2019 and December 17, 2019, we granted to certain employees and directors an aggregate of 677,800 restricted stock units under the Sprout Social, Inc.
−Removed: 2019 Incentive Award Plan, with grant-date fair values of $14.98 per restricted stock unit.
−Removed: Unless otherwise stated, the sales of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act (or Regulation D or Regulation S promulgated thereunder), or Rule 701 promulgated under Section 3(b) of the Securities Act as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation as provided under Rule 701.
−Removed: The recipients of the securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed upon the stock certificates issued in these transactions.
Issuer Purchases of Equity Securities
−Removed: Use of Proceeds from Public Offering of Class A Common Stock
+Added: Use of Proceeds from Initial Public Offering of Class A Common Stock
On December 17, 2019, we closed our IPO, in which we sold 8,823,530 shares of Class A common stock at a price to the public of $17.00 per share.
16 unchanged sentences
The graph assumes an initial investment of $100 in our Class A common stock at the market close on December 13, 2019, which was our initial trading day.
−Removed: Data for the S&P 500 Index and the Nasdaq Computer Index
−Removed: assume reinvestment of dividends.
+Added: Data for the S&P 500 Index and the Nasdaq Computer Index assume reinvestment of dividends.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our Class A common stock.
7 unchanged sentences
Years Ended December 31,
+Added: 2020 2019 2018
( in thousands, except share and per share data )
Consolidated Statement of Operations Data:
+Added: Subscription $ 131,804 $ 102,243 $ 78,392
Professional services and other 1,145 464 421
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Cost of revenue (1) :
+Added: Subscription 34,196 27,862 20,726
Professional services and other 721 292 268
Total cost of revenue 34,917 28,154 20,994
+Added: Gross profit 98,032 74,553 57,819
Operating expenses:
Research and development (1)
+Added: 30,491 28,059 25,426
Sales and marketing (1)
+Added: 59,137 55,584 35,980
General and administrative (1)
+Added: 40,406 38,178 17,185
Total operating expenses 130,034 121,821 78,591
2 unchanged sentences
Interest income 617 307 35
+Added: Other income 223 490 442
Loss before income taxes (31,528) (46,741) (20,912)
2 unchanged sentences
Net loss per share attributable to common shareholders, basic and diluted (2)
+Added: $ (0.62) $ (2.54) $ (1.26)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (2)
51,368,737 18,438,695 16,593,258
+Added: _________________
(1) Includes stock-based compensation expense as follows (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Year Ended December 31, 2020 Compared to Year Ended December 31, 2019—Operating Expenses” for more information):
Years Ended December 31,
+Added: 2020 2019 2018
( in thousands )
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Total stock-based compensation expense
+Added: $ 11,079 $ 25,333 $ 53
(2) See Note 1 and Note 12 to our audited consolidated financial statements for more information regarding net loss per share.
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Consolidated Balance Sheet Data:
−Removed: Cash and restricted cash
+Added: Cash and cash equivalents $ 114,515 $ 135,310
Working capital (1)
+Added: 135,753 113,977
+Added: Total assets 239,669 189,591
Deferred revenue 43,762 29,775
−Removed: Convertible preferred stock (2)
−Removed: Total stockholders’ (deficit)/equity (2)
+Added: Total stockholders’ equity
152,099 128,130
+Added: ________________
(1) Working capital is defined as total current assets minus total current liabilities.
−Removed: Convertible preferred stock was automatically converted into Class A common stock immediately prior to our IPO on December 17, 2019.
−Removed: See Note 8 to our audited consolidated financial statements.
Key Business Metrics
4 unchanged sentences
Number of customers 26,718 23,693
+Added: Total ARR $ 158,268 $ 117,846
+Added: Organic ARR $ 157,182 $ 115,185
Number of customers contributing more than $10,000 in ARR
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Year Ended December 31,
+Added: 2020 2019 2018
( dollars in thousands, except per share data )
5 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.