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Eleventh Consecutive Quarter of Record Revenue Underpins 22% Annual Growth; Sequentially Improved New Customer Additions, Updated Pricing Strategy, and Perfect Audience Acquisition Provide Strong Runway for 2020 Expansion

GAINESVILLE, FL – March 12, 2020 SharpSpring, Inc. (NASDAQ: SHSP), a leading cloud-based marketing automation platform, reported financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 and Recent Operational Highlights

  • Added more than 300 new SharpSpring customers, of which approximately 80% were agency customers, who selected the platform to generate leads, convert more leads to sales and measure the ROI of their marketing campaigns. New customer additions are expected to generate approximately $2.3 million in annual recurring revenue.
  • Finished the quarter with approximately 2,000 agency customers, over 500 direct customers and over 9,000 total businesses using the SharpSpring Marketing Automation platform.
  • Average monthly net revenue attrition increased to 1.9% for comparable cohorts.
  • Reinforced company commitment to building out infrastructure and controls designed to achieve scaled growth through the appointment of experienced finance professional and software industry veteran Michael Power as SharpSpring’s new CFO.
  • Acquired Perfect Audience from Marin Software for net cash consideration of $4.6 million, combining a powerful SMB-focused digital ad platform with marketing automation.
  • Released Sales Dialer, a fully integrated, outbound calling solution that offers one-click calling, automated recording, and searchable transcription features, empowering sales teams to optimize the quality and quantity of conversations they have with prospects.
  • Announced a limited-time program to cover 100% of the $3,600 annual fee for marketing agencies currently enrolled, or wishing to enroll, in HubSpot’s Solutions Partner Program that join SharpSpring’s Agency Partner Program.

Fourth Quarter 2019 Financial Results

  • Total revenue increased 19% to a record $6.1 million from $5.2 million in the same year-ago period.
  • Gross profit increased 7% to $4.0 million (65% of total revenue) from $3.7 million (72% of total revenue) in the same year-ago period.
  • Net loss was $2.7 million, or $0.24 per share, compared to net loss of $2.3 million, or $0.26 per share, in the fourth quarter of 2018.
  • Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $1.9 million, compared to an adjusted EBITDA loss of $1.6 million in the same year-ago period.
  • Core net loss (a non-GAAP metric reconciled below) totaled $2.1 million, or $0.19 per share, compared to core net loss of $1.7 million, or $0.19 per share, in the same year-ago period.
  • At year-end, the company had $11.9 million in cash, compared to $9.3 million at December 31, 2018.

Full Year 2019 Financial Results

  • Total revenue increased 22% to $22.7 million from $18.7 million in 2018.
  • Gross profit increased 21% to $15.6 million, or 69% of total revenue, from $12.9 million, or 69% of total revenue, in 2018.
  • Net loss totaled $12.4 million, or $1.20 per share, compared to a net loss of $9.5 million, or $1.11 per share, in 2018.
  • Adjusted EBITDA loss (a non-GAAP metric reconciled below) totaled $7.4 million, compared to an adjusted EBITDA loss of $6.2 million in 2018.
  • Core net loss (a non-GAAP metric reconciled below) totaled $8.2 million, or $0.79 per share, compared to core net loss of $7.0 million, or $0.82 per share, in 2018.

2020 Financial Outlook

  • Turning to our financial outlook, for the fiscal year ending December 31, 2020, we expect total revenue to range between $30 million and $31 million, which would represent an approximate increase of 32% to 37%, respectively, compared to the prior year. The company’s guidance is based on recurring revenue from our current customer base and early performance results we’re recording in the first quarter and the material positive impact from a recent price increase we enacted.

Management Commentary

“2019 was another period of steady growth for our company as we continued to build on our leading position as the premier agency-focused marketing automation solution in the market today,” said SharpSpring CEO Rick Carlson. “Financially, we generated our eleventh consecutive quarter of record revenue in Q4 and grew healthily above 20% for the year to $22.7 million. We also generated sequentially improved new customer wins and agency partner sales, which is an early but strong indicator that the efforts we took in the second half of this year to identify and improve key areas of our sales funnel are beginning to take hold. Nearing the 2,000-agency mark is a major achievement that speaks to our ability to consistently drive new customer wins over an extended period and clearly shows our immense value is being appreciated, both in price and in feature-set, by our customers.

“2019 was also a time of serious investment – investment in our processes, in our technology, and in our people. In the latter half of the year we made a number of key strategic moves with a focus on positioning our business for long-term growth. Our recent acquisition of Perfect Audience is a prime example of our approach to all three investment areas. Combining a powerful SMB-focused digital ad platform with marketing automation creates a combined product offering unlike anything on the market, and we plan to leverage the existing customer bases for both platforms to drive greater revenue streams for SharpSpring as well as our agency partners. Heading into 2020, we believe we’ve laid the necessary foundation to drive a re-acceleration new customer growth and improved net revenue retention, which will allow us to grow our position in a still rapidly expanding market opportunity.”

Conference Call

SharpSpring management will hold a conference call today, March 12, 2020 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

Company CEO Rick Carlson and CFO Michael Power will host the call, followed by a question and answer period.

U.S. dial-in number: 844-369-8770
International number: 862-298-0840

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website at

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through March 26, 2020.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 33149

About SharpSpring, Inc.

SharpSpring, Inc. (NASDAQ: SHSP) is a rapidly growing, highly-rated global provider of affordable marketing automation delivered via a cloud-based Software-as-a Service (SaaS) platform. Thousands of businesses around the world rely on SharpSpring to generate leads, improve conversions to sales, and drive higher returns on marketing investments. Known for its innovation, open architecture and free customer support, SharpSpring offers flexible monthly contracts at a fraction of the price of competitors, making it an easy choice for growing businesses and digital marketing agencies. Learn more at

Non-GAAP Financial Measures

Adjusted EBITDA, core net loss and core net loss per share are “non-GAAP financial measures” presented as supplemental measures of the company’s performance. These metrics are not presented in accordance with United States generally accepted accounting principles, or GAAP. The company believes these measures provide additional meaningful information in evaluating its performance over time. However, the measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the company’s results as reported under GAAP. A reconciliation of net loss to these measures is included for your reference in the financial section of this earnings press release.

Important Cautions Regarding Forward-Looking Statements

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continues,” “estimates,” “projects,” “intends,” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, our ability to successfully utilize our cash to develop current and future products, delays due to issues with outsourced service providers, those events and factors described by us in Item 1. A “Risk Factors” in our most recent Form 10-K and other risks to which our company is subject, and various other factors beyond the company’s control. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Company Contact:
Aaron Jackson
Interim Chief Financial Officer
Phone: 352-448-0967

Investor Relations:
Gateway Investor Relations
Matt Glover or Tom Colton
Phone: 949-574-3860