Operator

Hello, everyone. Thank you for joining us, and welcome to Sprout Social First Quarter 2026 Earnings Call. [Operator Instructions]

I will now hand the conference over to Lexi Johnson, Investor Relations. Lexi, please go ahead.

Alexis Johnson

Thank you, and welcome to Sprout Social’s First Quarter 2026 Earnings Call. We will be discussing the results announced in our press release issued after market close today and have also released an updated investor presentation, which can be found on our website. With me are Sprout Social’s CEO, Ryan Barretto; and Vice President of Investor Relations and Corporate Development, Alex Kurtz.

Today’s call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking. These include, among others, statements concerning our expected future financial performance, including our Q2 and 2026 outlook and business plans and objectives and can be identified by words such as expect, anticipate, intend, plan, believe, seek, opportunity, target or will.

These statements reflect our views as of

Businesses often see cameras as simple tools for catching bad actors. Modern tech turns lenses into powerful eyes for your daily business flow. It is a shift from simple security to deep operational insight.

The change transforms a reactive cost into a proactive investment. Better data helps teams make smarter choices every single day. Clearer pictures of what happens on site lead to better results for everyone.

Shifting Perspectives On Modern Security

Old security setups mostly sat idle until something went wrong. Managers spent hours scrolling through grainy footage after a theft had happened. The manual work costs companies time and money that they could never get back.

Today, smart systems work constantly to provide real-time updates. Modern tools like video management software help leaders keep a pulse on their entire site. High-resolution feeds make it easy to see small details from anywhere.

The move toward active monitoring changes how companies think about their hardware. Cameras are no longer just static guards on the wall. They are now data collection points that feed into a larger business strategy.

Lowering Long-Term Maintenance Costs

Managing hardware across a large campus is often a logistical nightmare. Technicians spend too much time traveling between sites for simple repairs. Travel costs add up quickly over a few months.

A report on campus safety found that moving to cloud platforms cut maintenance costs by 20%. Systems allow for remote updates and health checks without sending a truck. Most glitches get fixed with a few clicks from a central office.

Reducing the need for physical visits keeps the system running longer. It frees up staff to focus on more complex technical needs. It is a more efficient way to handle a large network of devices.

Boosting Retail Sales Through Layout Data

Floor space is expensive for any store owner. Knowing how customers move through aisles is the key to better profits. Small changes in shelf placement can have a huge impact on the bottom line.

A popular retail news outlet shared that using video data to fix floor layouts leads to a 10% to 12% jump in sales per square foot. It happens when hot spots are identified and filled with high-value items, and it helps owners put the right products on the right path.

Managers can spot where people linger or where they get stuck. Fixing small friction points makes shopping much smoother for everyone. It turns a frustrating visit into a quick and easy trip.

Speeding Up Loss Prevention Efforts

Theft remains a major drain on revenue in the retail world. Catching issues early saves thousands of dollars over a year. Standard security often misses the subtle signs of internal problems.

One loss prevention publication noted that linking cameras with sales data helps find theft patterns 3 times faster than manual checks. Automated alerts flag suspicious register activity the moment it happens. It allows for a fast response before the damage grows.

Speed lets teams stop losses before they snowball into bigger problems. It takes the guesswork out of auditing hundreds of transactions. Staff can focus on real issues instead of chasing ghosts.

Streamlining Warehouse Workflow Efficiency

Logistics hubs rely on speed and accuracy to stay competitive. Even small delays in packing can ruin a delivery schedule. Video tech helps managers see where the bottlenecks are hiding.

Placing cameras at key hand-off points reveals where boxes pile up. Supervisors use this info to move staff to busier areas immediately. This keeps the flow of goods moving without interruption.

• Monitor loading dock wait times.
• Track forklift paths to avoid traffic.
• Verify package counts at sorting stations.

Data from these views helps plan the day better. It removes the need for managers to walk the floor constantly. They can see everything from a single tablet or phone.

Enhancing Employee Safety And Training

Workplace accidents lead to high insurance costs and lost time. Seeing how teams interact with machinery helps prevent future injuries. It provides a clear record of what went right and what went wrong.

Video clips serve as perfect teaching tools for new hires. Showing a real example of a safety violation is more effective than a handbook. It makes the risks feel real to everyone in the room.

Teams feel more supported when they see management cares about their physical well-being. Safe environments lead to higher morale across the board. Productivity rises when people feel secure in their roles.

Improving Customer Service Interactions

Long lines at the checkout are the fastest way to lose a sale. Sensors in cameras alert a manager when a 3rd person joins a queue. Tech helps the shop stay ahead of the rush, keeping wait times low for every visitor.

Managers use live feeds to open new registers before lines get long. Systems identify times when more floor staff are needed at certain spots. Reviewing past interactions helps improve staff training for future shifts without any guessing.

• Open new registers before lines get long.
• Identify times when more floor staff are needed.
• Review interactions to improve staff training.

Seeing these trends live helps a business stay agile and ready for anything. Customers appreciate the quick service and are more likely to return for more visits. It builds a reputation for being a fast and friendly place to shop.

Integrating Data For Better Decisions

Combining video with other business tools creates a full picture of health. It is about more than just looking at a screen and connecting the dots between different parts of the company.

Modern software blends heat maps and traffic counts into one dashboard. Decision makers use the reports to plan future staffing and inventory. It makes the planning process much more accurate for the long term.

Smart tech removes the bias of human observation. Data provides a clear look at what is actually happening on the ground, which leads to confident choices that drive the company forward.

Visibility is the secret to refining every part of a business. Investing in the right tech pays for itself through better habits. It is a way to see the path to success much more clearly.

Companies that embrace smart tools stay ahead of the curve. Clear sight leads to a much stronger bottom line. Every lens is a chance to make the workday better for everyone.