HubSpot Reports Strong Q3 Earnings, Highlights AI-Powered Innovations
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HubSpot earnings top forecasts with 20% revenue growth and customer gains
HubSpot earnings top forecasts with 20% revenue growth and customer gains Shares in HubSpot Inc. were up around 7% in late trading today after the inbound marketing and customer relationship management company beat revenue and earnings estimates in its fiscal 2024 third quarter. For the quarter that ended on 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 was up 28% to $15 million. HubSpot saw its number of customers grow 23% year-over-year to 238,128 and the average subscription revenue per customer was $11,235, down 2% year-over-year. 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," Yamini Rangan, chief executive officer at HubSpot, said in the company's earnings release. "We hosted our annual INBOUND conference, which was a huge success, showcasing over 200 new innovations, including the standout launches of Breeze and Breeze Intelligence." "We are embedding AI across all our hubs and our entire platform to help SMBs grow," Rangan added. "With our relentless focus on innovation with AI and solid momentum in Q3, I'm more confident than ever in HubSpot's durable growth." 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.
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HubSpot Shares Climb After Strong Q3 Results: EPS Beat, Revenues Beat - HubSpot (NYSE:HUBS)
Quarterly revenue clocks in at $669.7 million, which beat the analyst consensus estimate of $646.9 million. HubSpot, Inc. HUBS shares are trading higher after the company reported its third-quarter results after Wednesday's closing bell. Here's a look at the details from the report. The Details: HubSpot reported quarterly earnings of $2.22 per share, which beat the analyst consensus estimate of $1.91. Quarterly revenue clocked in at $669.7 million which beat the analyst consensus estimate of $646.9 million and is an increase over sales of $557.55 million from the same period last year. Subscription revenue was $654.7 million, up 20% year-over-year. Professional services and other revenue was $15 million, up 28% year-over-year. Customers grew to 238,128 at Sept. 30, 2024, up 23% from the prior year's quarter. Average Subscription Revenue Per Customer was $11,235 during the third quarter. Read Next: What Does Trump's Victory Mean For EV Giant Tesla And The Big 3 Automakers? "[The] third quarter was another strong quarter of revenue growth, operating profit growth and customer growth," said Yamini Rangan, CEO at HubSpot. "We hosted our annual INBOUND conference which was a huge success, showcasing over 200 new innovations, including the standout launches of Breeze and Breeze Intelligence. We are embedding AI across all our hubs and our entire platform to help SMBs grow. With our relentless focus on innovation with AI and solid momentum in the third quarter, I'm more confident than ever in HubSpot's durable growth," Rangan added. Outlook: HubSpot sees fourth-quarter total revenue in the range of $672 million to $674 million and expects foreign exchange rates to have a one-point tailwind to fourth-quarter 2024 revenue growth. The company sees full-year 2024 total revenue in the range of $2.597 billion to $2.599 billion. HUBS Price Action: According to Benzinga Pro, HubSpot shares are up 7.90% after-hours at $645 after gaining 3.37% during Wednesday's regular trading session. Read More: Trump's Big Tech Policies: What GOP Victory Means For Apple, Google, Microsoft Photo: Courtesy of HubSpot, Inc. Market News and Data brought to you by Benzinga APIs
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HubSpot's Q3 2024 earnings surpass expectations with 20% revenue growth and significant customer gains. The company emphasizes its AI-driven innovations, including the launch of Breeze and Intelligence tools.
HubSpot's Q3 Financial Performance
HubSpot Inc., a leading inbound marketing and customer relationship management company, has reported impressive financial results for its fiscal 2024 third quarter. The company's performance exceeded analyst expectations, with adjusted earnings per share reaching $2.18, up from $1.62 in the same quarter last year. Revenue soared to $669.7 million, marking a 20% year-over-year increase 12.
The company's subscription revenue, which forms the bulk of its income, grew by 20% to $654.7 million. Professional services and other revenue saw an even more substantial increase of 28%, reaching $15 million 1.
Customer Growth and Metrics
HubSpot's customer base expanded significantly, growing by 23% year-over-year to reach 238,128. However, the average subscription revenue per customer slightly decreased by 2% to $11,235 12. This suggests that while the company is successfully attracting new customers, there may be some pressure on pricing or a shift in the mix of services subscribed to by customers.
Financial Position and Cash Flow
The company demonstrated strong cash generation, with $164 million in cash from adjusted operating cash flow during the quarter. HubSpot's financial position remains robust, with $2.1 billion in cash, cash equivalents, and short-term and long-term investments at the end of the quarter 1.
AI-Powered Innovations
A key highlight of HubSpot's recent developments is the launch of Breeze, an AI-powered solution designed to enhance customer management for go-to-market teams. Breeze includes an AI assistant called Breeze Copilot, which is integrated throughout HubSpot's applications, offering streamlined access to data and insights without requiring technical expertise 1.
Additionally, HubSpot introduced Intelligence, a tool that consolidates customer data from millions of profiles. This innovation allows teams to build comprehensive client records and discern buyer intent more effectively 1.
Executive Commentary and Future Outlook
Yamini Rangan, CEO of HubSpot, expressed confidence in the company's performance and future prospects. She highlighted the success of the annual INBOUND conference, where over 200 new innovations were showcased, including Breeze and Breeze Intelligence 12.
Rangan emphasized HubSpot's commitment to embedding AI across all its hubs and platforms to help small and medium-sized businesses grow. She stated, "With our relentless focus on innovation with AI and solid momentum in Q3, I'm more confident than ever in HubSpot's durable growth" 1.
Forward Guidance
For the fiscal fourth quarter, HubSpot projects adjusted earnings per share between $2.18 and $2.20, with revenue expected to range from $672 million to $674 million. The company's full-year forecast anticipates adjusted earnings per share of $7.98 to $8.00 on revenue between $2.597 billion and $2.599 billion 12.
Market Response
Investors responded positively to HubSpot's strong performance and future outlook. Following the earnings announcement, the company's shares climbed approximately 7% in after-hours trading 12, reflecting market confidence in HubSpot's growth trajectory and AI-driven strategy.
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