HubSpot's Q4 Earnings Surpass Expectations, Highlighting AI-Driven Growth

HubSpot Shares Climb After Solid Q4 Report: EPS Beat, Revenues Beat - HubSpot (NYSE:HUBS)

HubSpot, Inc. HUBS reported its fourth-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. The Details: HubSpot reported quarterly earnings of $2.32 per share, beating the $2.19 analysts consensus estimate. Quarterly revenue came in at $703.17 million, beating the $673.32 million consensus estimate. Subscription revenue was $687.3 million, up 21% from the same quarter last year. Professional services and other revenue was $15.9 million, up 36% year-over-year. Grew Customers to 247,939 at Dec.31, 2024, up 21% from Dec. 31, 2023. Average Subscription Revenue Per Customer was $11,312 during the fourth quarter, down 0.5% year-over-year. Calculated billings were $767.6 million, up 16% on an as-reported basis and 21% in constant currency compared to the prior year's quarter. Read Next: Inflation Runs Hot In January: 'Houston We Have A Problem,' Experts Warn "We had a solid finish to 2024, highlighting our leadership as a platform company", said Yamini Rangan, CEO of HubSpot. "2024 was a transformative year for HubSpot as we reimagined our product, our platform, and company with AI. I'm excited by the progress we've made in embedding AI across our hubs and the value it's driving for customers," Rangan added. Outlook: HubSpot sees first-quarter revenue of between $697 million and $699 million, versus the $705.71 million estimate, and EPS of between $1.74 and $1.76, versus the $2.00 estimate. HubSpot expects fiscal 2025 total revenue in a range of $2.98 billion to $2.99 billion, versus the $2.99 billion estimate, and EPS of between $9.11 and $9.19, versus the $9.14 estimate. HUBS Price Action: According to data from Benzinga Pro, HubSpot shares are up 5.06% after hours at $823.01 Wednesday. Read Next: Palantir Adds Elon Musk's AI Chatbot Grok To AIP Image: Courtesy of HubSpot, Inc. HUBSHubSpot Inc$815.003.89%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

HubSpot Surpasses Q4 Revenue Estimates | The Motley Fool

HubSpot reported strong quarterly earnings, outpacing both management's guidance and analyst estimates. It was driven by impressive revenue growth and enhanced platform capabilities. Customer relationship management software provider HubSpot (HUBS 0.13%) reported fourth-quarter earnings on Wednesday, Feb. 12 that topped analysts' consensus expectations. Adjusted EPS (diluted) came in at $2.32, outperforming the expected $2.19. Revenue of $703.2 million surpassed estimates of $673 million as well as management's guidance of $672 to $674 million. Revenue for the quarter rose 21% year over year, reflecting successful strategic shifts and solid execution. While a slight decline in average revenue per customer emerged, the overall quarterly results illustrate a strong performance. Source: HubSpot. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year. pps = Percentage points. HubSpot is a leading provider of customer relationship management (CRM) software for businesses around the globe. Its integrated cloud-based platform allows mid-market businesses to manage marketing, sales, customer service, and other operations. The company focuses on a freemium pricing model that enables users to start with free-tier products and upgrade to paid versions as they require more comprehensive services. This strategy is central to its success, particularly in the middle-market B2B sector. Key business areas include platform integration and artificial intelligence (AI) innovation. HubSpot's Smart CRM offers a seamless management experience by integrating marketing, sales, and service functions into one interface, reducing complexity for users. Recent focuses for the business have been AI enhancements to bolster the CRM experience and international market growth. HubSpot's strong Q4 revenue growth can be attributed to robust customer acquisition and retention. Subscription revenue amounted to $687.3 million, up 21% from the previous year, driven by a growing customer base. The operating margin improved to 18.9%, reflecting effective cost management despite expanded investments in AI and platform development. Operating cash flow was particularly strong at $194.1 million, nearly doubling from $104.3 million in the prior year. This increased cash flow highlights solid financial management and operational efficiency. In Q4, HubSpot integrated significant AI functionalities across its platform, enhancing user engagement and feature accessibility. CEO Yamini Rangan emphasized, "2024 was transformative as we reimagined our products and platform with AI." The total customer count rose by 21%, reaching 247,939, benefiting from the freemium model and expanding market reach. Challenges, however, were noted. The average subscription revenue per customer (ASRPC) saw a 0.5% decline, showing potential pressure from the new seat pricing model. The macroeconomic environment continued to pose challenges, affecting additional sales and upselling opportunities. Looking ahead, HubSpot forecasts full-year 2025 revenue between $2.985 billion and $2.995 billion. This guidance suggests a year-over-year growth rate of 14%. The company commits to ongoing AI integration throughout its platform, anticipated to be a key driver behind this growth potential. Adjusted net income per share for 2025 is expected to range from $9.11 to $9.19. Investors are advised to monitor developments in AI-driven enhancements and international market expansions as these are pivotal to HubSpot's sustained growth trajectory.