What changed in this filing

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Item 1. Business

2023-02-22 compared with 2022-02-23 · 91 added, 77 removed, 427 unchanged (28% of the section changed)

Sprout Social — Powering the Evolution of Customer Experience

With more than 3.9 billion global users consuming and sharing billions of posts per day, social media has fundamentally changed the entire customer experience.

Social media is becoming mission-critical to the way organizations reach, engage and understand their target audience and customers.

With more than 4.5 billion global users consuming and sharing billions of posts per day, social media has fundamentally changed the customer experience.

Social media has become mission-critical to the way organizations reach, engage and understand their target audience and customers.

Sprout Social is a powerful, centralized platform that provides the critical business layer to unlock the massive commercial value of social media.

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Billions of users are sharing their interests, opinions and values with their social networks every day and are using social media to communicate with and about businesses, organizations and causes on an unprecedented scale.

Virtually every aspect of business has been impacted by social media, from marketing, sales and public relations to customer service, commerce, product and strategy, creating a need for an entirely new category of software and an entirely new system of record.

Virtually every aspect of business has been impacted by social media, from marketing, sales, commerce and public relations to customer service, product and strategy, creating a need for an entirely new category of software and an entirely new system of record.

We offer our customers a centralized, secure and powerful platform that can scale horizontally across an organization to drive maximum business value.

Introduced in 2011, our cloud software brings together social messaging, data and workflows in a unified system of record, intelligence and action.

Operating across major networks, including Twitter, Facebook, Instagram, Pinterest, LinkedIn, Google, Reddit, Glassdoor and YouTube, and commerce platforms Facebook Shops and Shopify, we provide organizations with a centralized platform to manage their social media efforts across stakeholders and business functions.

Operating across major networks, including Twitter, Facebook, Instagram, TikTok, Pinterest, LinkedIn, Google, Reddit, Glassdoor and YouTube, and commerce platforms Facebook Shops, Shopify and WooCommerce, we provide organizations with a centralized platform to manage their social media efforts across stakeholders and business functions.

Our platform is easy-to-use and can be deployed rapidly by new customers without direct engagement from our sales or services teams.

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Relative to our primary competitors, our platform is the top user-rated social media management software across all major categories and customer segments according to G2, reinforcing our leading market position and brand.

We have proven success in the SMB, Mid-market and Enterprise segments, a healthy agency business and have balanced revenue and growth in each.

We have proven success in the SMB, Mid-market and Enterprise segments.

Each of our segments is growing, but we expect that our current and future growth will likely be driven by outsized contributions from Mid-market and Enterprise.

We estimate that less than 5% of the millions of businesses on social media have adopted software solutions to centrally manage their social media efforts, providing a large, nascent opportunity to drive significantly increased market adoption of our solution and continued growth across all customer segments.

We have a highly efficient, product-driven go-to-market strategy that has enabled us to scale rapidly, attracting more than 34,000 current customers from small businesses to global brands as well as marketing agencies and government, non-profit and educational institutions.

The strength of our brand and content marketing resulted in the majority of our inbound trials generated through unpaid marketing.

In 2022, the strength of our brand, content marketing, and search engine optimization resulted in the majority of our inbound trials generated through unpaid marketing.

The scale of these trials allows us to rapidly test, adapt and optimize our go-to-market approach for sustained, capital-efficient growth.

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Our platform is licensed on a per-user basis with numerous upsell opportunities through additional users and product modules.

As social becomes a critical channel for all aspects of the customer experience, including brand awareness, customer acquisition, social customer care, commerce, advocacy and reputation management, we expect that our customers will increase adoption of our platform across departments.

As social becomes a critical channel for virtually all aspects of the customer experience, including brand awareness, customer acquisition, social customer care, commerce, advocacy and reputation management, we expect that our customers will increase adoption of our platform across departments.

With our efficient go-to-market model and over 99% of our revenue in 2022 from software subscriptions, we have experienced strong unit economics across all customer segments as we continue to grow and refine our sales and marketing efforts.

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A significant number of purchasing decisions are originating from, influenced by or transacted through social media.

According to Creating Connection, 76% of consumers are more likely to buy from a brand that they are connected with on social media.

Additionally, Lyfe Marketing states that consumers report spending 20% to 40% more on brands that have interacted with them on social media.

According to our report, Social Shopping in 2022:

Consumer Behaviors in the Social Shopping Cart, 40% of consumers find products via organic social posts from the brand and 34% of consumers research products using social media.

• Consumer expectations are high .

Consumers demand that brands be present and responsive across social networks, with more than 80% anticipating a response to a social media message within 24 hours according to Altitude.

Author Jay Baer found that 39% of consumers who complain on social media expect a response within one hour and, according to The Sprout Social Index, 23% of consumers have indicated they would boycott a brand after a negative social interaction.

Consumers demand that brands be present and responsive across social networks, with more than 76% anticipating a response to a social media message within 24 hours and more than 90% expecting a response within 48 hours, according to The 2022 Sprout Social Index.

According to the same report, when brands take too long to respond, 36% of consumers say they’ll share that negative experience with friends and family, 31% say they won’t complete their purchase, and 30% say they will buy from a competitor instead.

• All aspects of business communication are shifting to social .

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• Diverse customer base with a highly efficient go-to-market strategy .

We successfully serve a large number of customers across industry and customer segments.

With our self-serve, inside and field sales strategies, we efficiently provide each customer segment with an exceptional experience and efficient scalability.

We serve a large number of customers across industry and customer segments.

With our self-serve, inside and field sales strategies, we seek to efficiently provide each customer segment with an exceptional experience and efficient scalability.

• Minimal time to value .

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• Network relationships.

We have built strong relationships with major social media networks, including Twitter, Facebook, Instagram, Pinterest, LinkedIn and Google, among others.

We have built strong relationships with major social media networks, including Twitter, Facebook, Instagram, TikTok, Pinterest, LinkedIn and Google, among others.

We work together closely with these networks to address the evolving needs of our customers and to bring new ideas and innovation to market.

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We offer live customer support to each customer regardless of spend, and customer success has always been deeply rooted in our DNA.

As a result, we have the highest-rated customer support of any platform in the industry according to G2 when compared to our primary competitors.

As a result, we have been recognized on G2’s 2023 list of the Highest Satisfaction Products, defined as products that "leave the most positive impact on their users"

• Large and growing barriers to entry.

Due to the technical complexities on the back end of social media, required network relationships and rising customer emphasis on security, compliance & data privacy, we believe the barriers to entry in our market have risen materially over the past several years.

Due to the technical complexities on the back end of social media, required network relationships and rising customer emphasis on security, compliance and data privacy, we believe the barriers to entry in our market have risen materially over the past several years.

• World-class culture .

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This is evidenced by our top user rating on G2 and 4.3 rating and 92% CEO approval rating on Glassdoor.

Glassdoor has recognized us as one of the “Best Places to Work” in 2017, 2018, 2020, 2021 and 2022 and as having a “Highest Rated CEO” in 2017, 2018 and 2019.

In 2020, we were also recognized as one of Fortune’s 100 Best Small and Medium Workplaces, one of Fortune’s 25 Best Small and Medium Workplaces for Women, and we were selected as a recipient of the 2020 Tech Cares Award from TrustRadius, awarded to tech companies that went above and beyond to support their clients and communities during the COVID-19 pandemic.

We were also recently ranked #3 on Battery Venture's 25 highest rated public cloud computing companies to work for during the COVID crisis.

Glassdoor has recognized us as one of the “Best Places to Work” in 2017, 2019, 2020, 2021, 2022 and 2023.

In 2022, we were also recognized by Great Place to Work and PEOPLE magazine on the 2022 PEOPLE Companies that Care list, which is based on data from companies representing more than 6.1 million U.S.

In that survey, 96% of employees said Sprout Social is a great place to work, which is 68% higher than the average U.S.

Sprout was also recognized as the #6 Best Workplace in Chicago and #9 Best Workplace for Parents by Great Place to Work.

This strong employer brand allows us to continue to attract high-quality talent and deliver a premium experience for our customers.

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(ii) utilized internal data and estimates to estimate the number of such businesses that require a social media management platform (the “Target Businesses”);

(iii) calculated the average of our ACV and our estimate of our primary competitors’ ACVs in each segment;

(iii) calculated the average of our annual contract value (ACV) and our estimate of our primary competitors’ ACVs in each segment;

and (iv) multiplied the estimated average segment ACVs by the estimated number of Target Businesses in each segment.

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We intend to aggressively pursue new customers with increasing efficiency in our go-to-market approach while expanding our sales capacity.

Although many new customers adopt our solution during their first engagement with us, we intend to drive higher conversion of new trials through various sales, marketing and product initiatives as one component of our customer acquisition strategy.

Although many new customers adopt our solution during their first engagement with us, we intend to drive higher conversion of product demonstrations and new trials through various sales, marketing and product initiatives as one component of our customer acquisition strategy.

• Further penetrate our existing customer base .

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It has also introduced a high level of complexity and the need for a centralized platform to manage these efforts across the organization.

Our platform brings all of the necessary tools together for organizations to expertly and efficiently manage this new channel and create compelling experiences for their audience.

Our platform brings all of the

necessary tools together for organizations to expertly and efficiently manage this new channel and create compelling experiences for their audience.

Our powerful, easy-to-use cloud platform allows organizations of all sizes to create stronger relationships through social media, create and publish effective content, measure and improve performance and better understand their markets and customers.

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We believe our competitive advantage is partly due to the relationships we have built with the social networks over the past nine years.

These relationships have enabled us to actively collaborate in lockstep with their respective product and engineering teams to roll out new features for our customers.

These relationships have enabled us to

actively collaborate in lockstep with their respective product and engineering teams to roll out new features for our customers.

Components of our Platform

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Customers choose a core plan and license the platform per-user.

Customers add users, social profiles and use-cases, which increases spend.

Customers add users, social profiles, and use-cases.

Customers add product modules (e.g., Listening) for an additional monthly rate depending on their needs.

We have a highly diverse base of over 34,000 current customers across SMBs, Mid-market companies, Enterprises and marketing agencies, as well as government, non-profit and educational institutions.

We have been increasingly focused on the Mid-market and Enterprise segments.

We expect that our current and future growth will likely be driven by outsized contributions from Mid-market and Enterprise.

Aligning to this focus, we announced a price increase in November 2022, which values our software consistent with the expectations of these segments of the market.

As a result, our total number of customers or the number of net new customers we add each quarter may decrease even if the average spend of each new customer increases over time.

Sales and Marketing

Our go-to-market approach is driven by the effectiveness and innovation of our platform and unpaid customer demand.

Our model is focused on a product driven strategy, where potential customers are led to our website and sign up for a free trial of our products.

Our model is focused on a product driven strategy, where potential customers are led to our website to sign up for a free trial or to request a demonstration of our products.

A subscription is designed to be easily purchased.

A substantial number of our customers subscribe without any interaction from our sales team.

This approach allows us to cost-effectively drive strong lead generation, upgrade free trials to paying customers and achieve growth of our platform within organizations of all sizes.

We make our products available for free online trials, which facilitates rapid and widespread adoption of our software.

This approach allows us to cost-effectively drive strong lead generation, upgrade free trials to paying subscription customers, drive strong conversion of demonstration requests and achieve growth of our platform..

As an organization realizes the strength of our platform, adoption of our products increases across the organization.

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Our marketing team is focused on generating awareness of our social media management platform and on inbound marketing through our industry leading blog and other social content, including our own large social media following.

The majority of inbound trials are generated from unpaid marketing, allowing us to rapidly test, adapt and optimize our go-to-market for sustained growth.

The majority of inbound trials and demonstration requests are generated from unpaid marketing, allowing us to rapidly test, adapt and optimize our go-to-market for sustained growth.

As of December 31, 2022, our sales and marketing department had 599 employees.

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We believe we compete favorably on all of these factors.

We primarily face competition from other social media management companies such as Sprinklr, Khoros and Hootsuite, as well as a range of independent point solutions.

We primarily face competition from other social media management companies such as Hootsuite, Khoros and Sprinklr, as well as a range of independent point solutions.

In order to compete, we work tirelessly to innovate and improve our products, while at the same time, preserving our unique culture.

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patent applications pending.

We also have one pending European patent application.

We intend to pursue additional patent protection to the extent we believe it would be beneficial and cost-effective.

We actively pursue registration of our trademarks, logos, service marks and domain names in the United States and in other key jurisdictions.

We are the registered holder of a variety of domain names that include the term “Sprout Social” and similar variations.

We are the registered holder of a variety of domain names

that include the term “Sprout Social” and similar variations.

We also own numerous trademarks, trade names, service marks, logos and design marks, including SPROUT SOCIAL and our leaf logo.

In addition to our registered intellectual property, we rely on trade secrets and confidential information to develop and maintain our competitive position.

We seek to protect our trade secrets and

confidential information through a variety of methods, including confidentiality agreements with employees and third parties who may have access to our proprietary information.

We seek to protect our trade secrets and confidential information through a variety of methods, including confidentiality agreements with employees and third parties who may have access to our proprietary information.

We also require most employees to sign agreements, pursuant to which such they assign to us any inventions, developments and other technology generated by them on our behalf.

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In the ordinary course of our business, we may process personal data.

Accordingly, we are, or may become, subject to numerous data privacy and security obligations, including federal, state, local, and foreign laws, regulations, guidance, and industry standards related to data privacy, security, and protection.

Such obligations may include, without limitation, the Federal Trade Commission Act, the California Consumer Privacy Act of 2018 (“CCPA”), the Canadian Personal Information Protection and Electronic Documents Act, Canada’s Anti-Spam Legislation, the European Union’s General Data Protection Regulation 2016/679 (“EU GDPR”), and the EU GDPR as it forms part of United Kingdom (“UK”) law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (“UK GDPR”).

In addition, several states within the United States have enacted or proposed data privacy laws.

For example, Virginia passed the Consumer Data Protection Act, and Colorado passed the Colorado Privacy Act.

The CCPA and EU GDPR are examples of the increasingly stringent and evolving regulatory frameworks related to personal data processing that may increase our compliance obligations and exposure for any noncompliance.

For example, the CCPA imposes obligations on covered businesses to provide specific disclosures related to the business’s collection, use, and disclosure of personal data and to respond to certain requests from California residents related to their personal data (for example, requests to know of the business’s personal data processing activities, to delete the individual’s personal data, and to opt out of certain personal data disclosures).

Also, the CCPA provides for civil penalties and a private right of action for data breaches which may include an award of statutory damages.

In addition, the California Privacy Rights Act of 2020 (“CPRA”), which becomes effective on January 1, 2023, will expand the CCPA.

The CPRA will, among other things, give California residents the ability to limit a business’s use of certain sensitive personal data, establish restrictions on personal data retention, expand the types of data breaches that are subject to the CPRA’s private right of action, and establish a new California Privacy Protection Agency to implement and enforce the new law.

Such obligations may include, without limitation, the Federal Trade Commission Act, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020 (“CPRA”) (collectively, the “CCPA”), the Canadian Personal Information Protection and Electronic Documents Act, Canada’s Anti-Spam Legislation, the European Union’s General Data Protection Regulation 2016/679 (“EU GDPR”), and the EU GDPR as it forms part of United Kingdom (“UK”) law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (“UK GDPR”).

In addition to the CCPA, several other states within the United States, such as Virginia and Colorado, have passed comprehensive privacy laws and similar laws are being considered in several other states, as well as at the federal and local levels.

For example, the CCPA imposes obligations on covered businesses to provide specific disclosures related to the business’s collection, use, and disclosure of personal data and to respond to certain requests from California residents related to their personal data (for example, requests to know of the business’s personal data processing activities, to delete or correct the individual’s personal data, and to opt out of certain personal data disclosures).

the CCPA provides for administrative fines and a private right of action for certain data breaches which may include an award of statutory damages.

In addition, the CPRA’s recent amendments to the CCPA established a new regulatory agency to implement and enforce the law.

European data privacy and security laws (including the EU GDPR and UK GDPR) impose significant and complex compliance obligations on entities that are subject to those laws.

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Culture and Workforce

Sprout Social was named a Best Place to Work in 2022 by the Glassdoor Employees' Choice award, marking the fifth time in six years that we have received this recognition.

In the third quarter of 2022, Great Place to Work and PEOPLE magazine named Sprout Social to the 2022 PEOPLE Companies that Care list, which is based on data from companies representing more than 6.1 million U.S.

In that survey, 96% of employees said Sprout Social is a great place to work, which is 68% higher than the average U.S.

Sprout Social was also recognized as the #6 Best Workplace in Chicago and #9 Best Workplace for Parents by Great Place to Work in 2022.

As of December 31, 2022, we had a total of 1,141 full-time employees, including 206 employees located outside the United States.

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We have not experienced any work stoppages, and we consider our relations with our employees to be good.

Our commitment to our employees is to foster a culture that enables every member of the Sprout team to do their best work in the most fulfilling way possible.

We strive to honor this commitment by prioritizing employee engagement and development;

diversity, equity and inclusion (DEI);

and employee benefits and wellness.

Our commitment to our employees is to foster a culture that enables every member of the Sprout Social team to do their best work of their career and have fun along the way.

At Sprout Social, we aspire to create a world-class flexible-first hybrid experience that enables exceptional work, fosters belonging, and transcends location.

Our employees choose where they perform best - whether that’s from home, the office, or a mix.

We default to digital collaboration and async communication norms to stay connected and work effectively to solve hard problems, and also taking great care in creating meaningful connections while physically apart.

We equally see the value of in-person, human connection and prioritize opportunities that bring our distributed teams together to strengthen the bonds within our global community, and will continue to create community and engagement around our offices.

In 2022, we gathered our global team in Chicago for a ‘Midyear Meetup’ focused on building connection and rapport.

We also hired a leader of distributed work to continue to develop these targeted investments and improve hybrid work operations, reinforce trust, and lay the groundwork for the future.

Employee Engagement & Development

• To ensure an active feedback loop, we field employee inclusion and engagement surveys.

In 2021, topics included the remote work environment, talent development needs, and our culture of feedback.

The feedback we received regarding remote work continues to inform and shape our strategy for our future as a distributed and hybrid work environment as well as our performance-focused culture.

• We have developed programs designed to ensure Sprout is a career accelerator for employees of all backgrounds, including introducing our comprehensive leadership development program known as GOLD (Growth Oriented Leadership Development).

GOLD consists of three targeted programs.

Ignite focuses on new leaders including those new to the role of leadership itself or to leadership at Sprout.

Evolve is tailored towards experienced managers and directors, and Amplify (launching in 2022) is designed for our most senior leaders including members of our executive team.

In addition, our Grow@ digital and on-demand platform provides education and development opportunities through internal programs and third party vendors.

We listen to our employees and use their feedback to shape our employee experience priorities.

Based on results from our internal employee survey, our employee engagement in 2022 remained above our industry benchmark.

Our commitment to leadership development and developing careers at Sprout Social continues to be a key focus area.

We continue to invest in leadership development at Sprout Social through our GOLD (Growth Oriented Leadership Development) program.

The program consists of ‘Ignite,’ which focuses on new leaders including those new to the role of leadership itself or to leadership at Sprout Social, ‘Evolve,’ which is tailored towards experienced managers and directors, and ‘Amplify’ (launched in 2022) which is designed for our most senior leaders.

This year we also launched a DEI Leadership Accelerator Program, a four-month experience aimed at supporting the continued growth and retention of our United States-based BIPOC employees through a series of professional development, leadership and peer coaching, and networking opportunities.

In addition to supporting our leaders, in late 2022 we created and launched The Career Studio, our first ever career development resource center for all employees.

This is an approachable virtual hub of career development tools designed to empower all employees to take ownership of their career journey at Sprout Social.

We continue to invest in our Grow@ digital and on-demand platform, which provides education and development opportunities through internal programs and third party vendors.

Diversity, Equity and Inclusion

• In August 2021, we released our second demographic report to provide transparency into where we stand, where we’ve progressed and where we need to improve in the areas of DEI.

We intend to continue to report our progress against the initiatives identified on an ongoing basis.

• We focused our sourcing efforts on underrepresented backgrounds and held our Recruitment Team accountable to prospecting diverse talent.

• To ensure our employees support and help drive our DEI efforts, all new hires participate in unconscious bias training as part of their onboarding.

• We encourage our employees to attend our monthly, employee-led DEI Guild meetings to discuss relevant topics such as centering marginalized voices within the queer community, ableism, and elevating women in the workplace.

We avoid scheduling any other meetings during this time so employees can prioritize DEI education.

• Our Community Resource Groups (CRGs), such as Black@, LGBTQ@, Women@, and Accessibility (A11y), provide space for team members to connect with those who share a common identity.

CRGs are centered around common identities and life experiences.

These volunteer-led groups work to serve the unique needs of their community members and foster a sense of belonging through connection, support and empathy.

Each group works with an executive sponsor and presents their strategic plans to our Executive Team.

In 2021, we added two new CRGs, Veterans@ and Interfaith@, bringing the total number of CRGs to ten.

• Our Always Be Growing Enrichment Program is a leadership-sponsored program focused on investing additional instruction, education, and support to our Black, Indigenous, and People of Color employees who are individual contributors.

• We partner with community organizations like re:work to improve hiring, retention and promotion of underrepresented talent.

We continue to provide public transparency into where we stand, where we’ve progressed and where we need to improve in the areas of DEI through our DEI Demographic report.

Our most recent report was published in February 2023, and we intend to continue to report our progress against the initiatives identified on an ongoing basis.

We established a company-wide workforce diversity vision focused on increasing the representation of women globally and BIPOC employees in the United States through targeted hiring and retention efforts.

We regularly track, report progress and identify targeted interventions to support this vision.

We focus our sourcing efforts on underrepresented backgrounds including investing in strategic partnerships such as re:work training and held our Recruitment Team accountable to prospective diverse talent.

We actively recruit from Historically Black Colleges and Universities and Hispanic Serving Institutions, including partnering with student organizations that serve traditionally underrepresented groups in tech.

In 2021, we partnered with the United Negro College Fund (UNCF) to create a scholarship program for Black/African American software engineering students.

Compensation, Benefits, and Employee Wellness:

To recruit and retain the best talent in the marketplace, we routinely refresh our total rewards program:

• In addition to competitive salaries, stock-based compensation awards, and flexible healthcare and insurance benefits, we offer the following programs, which vary by country/region:

paid time off, family leave, flexible work schedules and 401(k) matching.

• As part of our progression towards a true hybrid work environment, we reopened our offices in 2021 on a voluntary basis to provide options to those who prefer or need an office based setting.

Numerous safety protocols were implemented to create a safe environment for those wishing to work within our office spaces.

We continue to provide a stipend to all new employees to ensure an optimal home setup.

In addition to providing employees tools through platforms like Modern Health and our Employee Assistance Program, in October 2021, our DEI Guild meeting topic was “Work Reset:

Redefining our Work Environment” providing employees the opportunity to hear from a best-selling author and psychotherapist on building resilience and combating burnout.

In addition, we continued our scholarship program with the United Negro College Fund to provide scholarships for Black/African American students majoring in software engineering.

Scholarship recipients were also given the opportunity to interview for our Associate Software Engineering Program.

We run a formal DEI learning curriculum to increase DEI awareness and ensure employees support and help drive our DEI efforts.

This includes unconscious bias training for all new hires as part of their onboarding.

We also encourage employees to attend our company-wide DEI Guild meetings to discuss relevant topics such as faith inclusion in the workplace, the impact of COVID-19 on the disability community and the exploration of black hair history and culture.

We avoid scheduling any other meetings during this time so employees could prioritize this experience.

We have ten Community Resource Groups (CRGs), which are volunteer led groups centered around common identities and life experiences that work to serve the unique needs of their community members, foster a sense of belonging through connection, support and empathy.

Each group works with an executive sponsor and receives an annual budget to support their initiatives and our CRG co-leads are compensated for their efforts.

Social Impact

Our Sprout Social Serves Mission is to promote the equity and social justice of historically marginalized communities through advocacy, access to quality education and technology for good.

Last year, we donated approximately $500,000 to support these causes through various not-for-profits.

Total Rewards

We strive to evolve our reward programs to be market competitive and comprehensive to cover employees at every stage of their personal and professional path and are focused on keeping wellness as the foundation for all employees globally.

To recruit and retain the best talent in the marketplace, we routinely review and refresh our total rewards program and we rely on employee feedback to shape and evolve our offerings.

We strive to offer options that are competitive, locally relevant and provide the resources needed to live fully, healthily, and balanced in work and life.

Our benefits include comprehensive healthcare, a global parental leave program with an equal length of time for all parents, a generous PTO policy, retirement programs and additional resources to support employees' overall mental health and well-being.

We also offer a family planning benefit of $5,000 USD towards surrogacy and adoption.

We continue to provide a stipend to all new employees to ensure an optimal home setup and provide a Wi-Fi reimbursement to all employees to support them in our hybrid work environment.

In addition to competitive salaries that are reviewed bi-annually against market-based data, we are committed to pay equity and perform a global pay equity analysis on an annual basis.

We also offer stock-based compensation awards for every new employee, regardless of role, eligible to receive annual equity grants (in addition to new hire equity awards), and an Employee Stock Purchase Plan (currently United States only) to provide the opportunity to purchase Sprout Social stock at a discounted price to further benefit from the financial success and growth of the company.

Our Website and Availability of SEC Reports and Other Information

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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.

What changed 10-K

Item 1. Business