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HubSpot earnings top forecasts with 20% revenue growth and customer gains
Shares in HubSpot Inc. rose 7% in late trading today after the inbound marketing and customer relationship management company beat revenue and earnings estimates in its fiscal third quarter.
For the quarter ended Sept. 30, HubSpot reported adjusted earnings per share of $2.18, up from $1.62 per share in the same quarter of the previous year, on revenue of $669.7 million, up 20% year-over-year. Both were solid beats, as analysts had expected adjusted earnings per share of $1.91 and revenue of $646.95 million.
Subscription revenue in the quarter came in at $654.7 million, up 20% year-over-year and professional services and other revenue rose 28%, to $15 million. HubSpot saw its number of customers grow 23% year-over-year, to 238,128, though the average subscription revenue per customer fell 2%, to $11,235.
Through the quarter, HubSpot generated $164 million in cash from adjusted operating cash flow. The company ended the quarter with $2.1 billion in cash, cash equivalents and short-term and long-term investments on hand.
Recent business highlights include HubSpot launching Breeze, an artificial intelligence-powered solution designed to enhance customer management for go-to-market teams. The platform features Breeze Copilot, an AI assistant embedded throughout HubSpot’s applications that offers a streamlined way to access data and insights without technical expertise.
The launch of Breeze also saw the introduction of Intelligence, a tool that consolidates customer data from millions of profiles and, in doing so, allows teams to build comprehensive client records and discern buyer intent with ease.
“Q3 was another strong quarter of revenue growth, operating profit growth and customer growth,” Chief Executive Yamini Rangan said in the company’s earnings release. “We are embedding AI across all our hubs and our entire platform to help SMBs grow.”
For its fiscal fourth quarter, HubSpot expects to see adjusted earnings per share of $2.18 to $2.20 on revenue of $672 million to $674 million. For the full year, the company expects adjusted earnings per share of $7.98 to $8.00 on revenue of $2.597 billion to $2.599 billion.
Photo: HubSpot
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