HubSpot Unveils AI-Powered Tools and Agents to Revolutionize Customer Relationship Management

Hubspot delivers four new AI agents

Dylan Sellberg, Director of Product, AI, HubSpot, said AI is here, and businesses are excited about the possibilities. However, they often use tools not connected to where they do business. HubSpot is changing that with Breeze AI. HubSpot is doubling down on three key things: tools that are easy, fast, and unified. HubSpot's customer research found that 89% of customers with a unified platform use it daily across marketing, sales, and service to generate 107% more leads, close 35% more deals, and increase ticket resolution by 28%. Sellberg said companies shouldn't need to learn a new coding language or create a new team to benefit from AI. HubSpot's goal is to unify AI tools and processes under a smart CRM, making it feel like an AI for one company. HubSpot has had an AI team for the last ten years, but with the release of Open AI's ChatGPT, the technology has taken a massive leap, and HubSpot is now taking advantage. HubSpot's co-pilot is with you throughout the HubSpot platform and is ready to respond to your questions. It's also deeply embedded in the mobile app and integrated with the Chrome extension. Sellberg said that, along with asking the co-pilot questions, it's also woven throughout the experience with previews. For example, you search for a customer record. Before you click on the record, the co-pilot will show you a summary of that record. The co-pilot can also help with content. If you need help with a title or a translation or want help refining a section of text, the co-pilot will edit the text and show you the two side-by-side. You can then accept, edit, or reject the changes altogether. Four AI agents to help automate work within the platform There are four AI agents: two for marketing, one for sales, and one for customer service. The Customer Agent helps frontline service reps answer documented customer solutions. The Prospect Agent helps BDRs and sales reps identify a book of business and perform deep research on contacts or companies within that book. The agent will also help draft tailored and personalized outreach. The Social Media Agent helps to create a detailed content calendar. It listens to trending topics in your industry, marketing events your business is hosting, and a number of other triggers to ensure the content created is on brand and in your brand voice. The content is optimized for X, Facebook, LinkedIn, and Instagram and is published on each social platform. The fourth agent is the Content Agent, and there are a couple of parts to this agent. A podcasting agent will help you create a podcast, and a blog post agent can create data-backed blog posts using insights from the CRM. HubSpot has also partnered with SEMRush to ensure your content is SEO optimized, including title, meta description, and body content. A landing page agent can use CRM data to create landing pages, thank you pages, and other pages that help convert leads more quickly. A case study agent helps you create data-infused customer stories. When you reference a customer record, it crawls that record to understand the customer. You can also upload call transcripts and other files, and it will create the case study. "Let's say you had a particularly delightful call with a recent customer who's seen wonderful impact with your product. You can upload the transcript of that call directly from HubSpot, and it will create you a case study, referencing customer quotes, statistics mentioned on the call, any highlights from their customer record." AI is continuing to weave its way into the Marketing and Content Hub. For the Content Hub, marketers now have Content Remix for Video, which allows them to create clips, audio, and written blog content from a single video. Marketers can also publish videos to YouTube and Instagram Reels. For the Marketing Hub, new lead scoring that is both manual and AI-powered will help segment high-fit prospects with engagement and fit scores. For those who hate creating workflows, HubSpot now offers AI-powered workflows that enable a marketer to describe in plain language what they want, and the AI will create the workflow for them. If you want to set up email subscription options, you can do that now, too. For those who advertise using Google and LinkedIn (and who doesn't), HubSpot has created APIs that allow you to share first-party conversion data, enabling you to improve your advertising targeting. Finally, the Marketing Analytics Suite provides out-of-the-box customer journey and attribution reports, plus AI insights to help you answer key questions. Sellberg said that HubSpot uses a handful of LLMs, including Open AI's LLMs. For some processes, it's a single LLM; for others, it might be multiple. Which ones are used for a process depends on what's needed. He said some are optimized for speed, some costs, and others for logic. They are constantly upgrading and choosing the right ones for the work and continuing to evaluate other external vendors. We take a lot of the heavy work, heavy lifting, off our customers' plates, choosing the best LLM. We also have a few of our own models we use for specific pieces in the process flow. I also asked Sellberg about customers' concerns about the security of their data. He said many concerns are rooted in uncertainty, and they are taking deliberate steps to help customers feel comfortable. We have a website called behindhubspotai.com where we host our model cards, and in those model cards, we dive deep into how each AI feature works and performs under the hood, where the data is moving, which model it's using, how it's working. And we also have our full commitment and guaranteed Trust and Privacy Policy and detail on how we use different AI services hosted at the already existing trust.hubspot.com, domain. So, with those two things put together, we hope to give our customers the confidence that they need to proceed with HubSpot AI and Breeze because we certainly have strong feelings about that, and we take a lot of steps and deliberate actions to make sure we're doing everything that we can in our customer's interest. HubSpot has many new AI-powered features, so I asked Sellberg how they ensure customers get up to speed. He said they are investing heavily in long-form and short-form courses in the HubSpot Academy that show how to use these products and think about AI overall. Within HubSpot, a new Breeze AI overview page explains how co-pilot and the four new AI agents work. Within each product, they are walking customers through a first experience with onboarding, providing them with an illustration of what they can do. Sellberg said they want to hold each customer's hand and bring them on the journey as they learn AI. HubSpot co-pilot is available to every customer. The Content Agent and Social Media Agents are for Marketing Hub Professional and Enterprise customers, the Prospect Agent is for Sales Hub Professional and Enterprise customers, and the Customer Agent is for Service Hub Professional and Enterprise customers. Also, the Social Media Agent and the Prospect Agent are in Private Beta, so you have to request access to those agents. AI's value extends far beyond its ability to create content, and HubSpot is introducing AI agents and a co-pilot that proves that. It's exciting to finally see new capabilities in the Marketing Hub that help take some of the busy work away from marketers. While HubSpot has recently done some great things with the new Content Hub, it felt like the Marketing Hub was getting left behind. The new intent data and data enrichment capabilities put HubSpot squarely in the revenue marketing category, ensuring marketing and sales have the information they need to drive growth in their companies. If you didn't think it made sense for HubSpot to sit high up in that category before, you should now. If you are a HubSpot customer, you should be excited to get your hands on these new capabilities. I look forward to hearing how well they work.

HubSpot goes native AI with Breeze Intelligence

HubSpot has always had AI capabilities in its customer platform, but now it's going deeper with the introduction of Breeze Intelligence, designed to make AI easy, fast, and unified (a "breeze," get it?). Inbound kicked off today, and HubSpot has a few big platform announcements. Let's start with Breeze Intelligence because it is at the core of everything new in the platform. Karen Ng, GTM for Smart CRM, filled me in on the details of Breeze Intelligence. She said they wanted to focus on creating a unified customer picture, one that provides customers with the right information at the right time. There are a few things that go along with this goal. First, remember that HubSpot acquired Clearbit in November of last year. This is what HubSpot CEO Yamini Rangan said about why they chose Clearbit: Clearbit has world-class data, and they share our commitment to helping customers grow. They also have a deep bench of B2B data experts with a bold mission to leverage AI to power insight. In all our conversations with Clearbit, it was clear that the team would be a great addition to our culture. And most importantly, this does not take away from our approach to building great products with cohesive user experiences. We use Clearbit data on our product today, and we have a very clear vision for how we can integrate their data to provide immediate value for our customers. In addition, we can leverage our product-led partner-led and sales-led distribution engines to get this into the hands of our customers post close. And what Clearbit will enable HubSpot to do: Our vision is to give millions of companies the best possible data about their customers in HubSpot. Today, we pull in data from website visits, marketing e-mails, sales calls, support tickets and more, and we unify all of that data on a beautiful, simple customer record. This is arguably the biggest advantage with HubSpot. With Clearbit, we will be able to bring in even more external data that can help our customers connect better with their end customers. Now, this is where HubSpot ended up. Clearbit itself is no more. All the capabilities and the data it brought to the table have been fully absorbed into the core customer platform. Ng explained that inside a core seat for HubSpot, you can now enrich contact and company records with 40 different enrichment characteristics across demographic, technographic, and firmographic data. When you activate Breeze Intelligence, these additional fields are automatically populated; you don't have to do anything. When you look at a record, you will see the additional fields populated. That data is continually updated, so it should always be accurate. What else does Breeze Intelligence give you? Intent data. Ng said buyers are leaving digital signals worldwide, and HubSpot is now capturing those signals. The Marketing Hub has new screens and features that enable marketers to see and work with intent data. The third capability is form shortening. People don't like filling out lengthy forms, so if the data you want can come from Breeze Intelligence, it's automatically populated, and the form is shortened to only the data you still need. All of these new capabilities enable marketing and sales to: Ng said that direct engagement data tells only part of the story. Breeze Intelligence is powered by over 200 million company and buyer profiles, providing even more data to give you the complete customer picture needed to drive growth. Finally, HubSpot has a deeper integration with Amplitude (behavioral screen analytics) to help marketers and customer success teams understand how customers use their products. Amplitude was already in the HubSpot App Marketplace, but Ng said it could not connect with campaigns. With this new integration, you can connect the analytics to campaigns and journeys to help you understand which ones work best. From a customer success perspective, within the Service Hub, you can use the data to populate an intent score, which helps you understand which customers are getting value and using your product. Ng said that customers with higher scores are more likely to be active users, and those with lower scores may be at-risk customers. Why Amplitude? Ng said it was already popular with a lot of their audience and with companies following a product-led growth model, so the deeper integration made sense. How exactly did HubSpot decide what AI capabilities to build into its platform? Ng said they started by understanding what people wanted to do. She said that we are at the beginning of AI disruption, and customers don't always have a clear picture of what they want AI to help them do. However, what they saw in early beta rounds was that some features were used again and again. For example, call summarization was a popular feature. Also, tone change. Ng said that it's not just about using AI to generate content, but about being able to highlight how something was phased and then change the tone (this is a Content Hub feature). According to HubSpot research, teams are switching between up to 15 different point solutions to manage customer interactions, and seven in ten are working with disconnected data. Breeze Intelligence is designed to overcome these challenges by providing one unified customer platform that leverages AI to power growth. Your AI is really only as good as the data it's trained on. And so across the board, we're using unified data in our customer platform to power all of our AI tools in a way that makes it more valuable and more powerful. So Breeze, of course, is our AI made easy for customers. Ng and I talked briefly about HubSpot's inclusion in Forresters Wave for Marketing Revenue Platforms. While they don't use that term, with these new updates, it's clear they have earned the right to sit near the top of that list of platforms. Yeah, we definitely think of ourselves as a customer platform for scaling businesses. Scaling businesses, meaning growth. And we see growth as revenue. So when we look across the customer platform, it has essentially our hubs. And so our sales, marketing, and service strengths are through those hubs. And then our Smart CRM layer. For us, that is really power. We power the entire hubs and all the customer platform with unified data. Unified data comes about with things like Smart CRM, Breeze intelligence. And then we have our ecosystem around us. So for us, even though we don't use the term revenue marketing, we are a growth business. We think we're a customer platform for growth companies, and that's how it ties back to the revenue. There is much more to the HubSpot news -- that's coming in part two. For now, HubSpot seems to have its finger on the pulse of what customers need -- whether they are small businesses or large enterprises. AI is here to stay, and when implemented right in a platform like HubSpot, it can help companies in many ways. Breeze Intelligence is available in all HubSpot editions. Lower editions will receive "enrichment credits" they can use to get access to the new data.

HubSpot unveils AI tools for business growth By Investing.com

BOSTON - In a recent development aimed at transforming the efficiency of go-to-market (GTM) teams, HubSpot (NYSE:HUBS) has introduced a suite of AI-powered tools and updates to its customer platform. The announcement was made during the company's Fall 2024 Spotlight at INBOUND. HubSpot's latest offering, Breeze, is an AI designed to streamline customer engagement across marketing, sales, and service teams. Breeze features a new AI companion named Copilot and four Breeze Agents -- Content Agent, Social Media Agent, Prospecting Agent, and Customer Agent -- designed to expedite tasks from inception to completion. The platform has also been enhanced with over 80 new features, including content remixing capabilities and sales forecast predictions. Another component of the release, Breeze Intelligence, focuses on data enrichment and buyer intent. It leverages a database of over 200 million buyer and company profiles to enrich records in HubSpot's Smart CRM. Additionally, Breeze Intelligence offers tools for form shortening to improve conversion rates by pre-populating known information. Updates to Marketing Hub and Content Hub were also highlighted, providing marketers with tools to capture attention, generate leads, convert prospects, and measure impact. Innovations such as Content Remix for video, Lead Scoring, Google (NASDAQ:GOOGL) Enhanced Conversions, and a new Marketing Analytics Suite were introduced to help marketers optimize their campaigns and achieve faster results. HubSpot's commitment to creating an easy, fast, and unified customer platform is underscored by its customers' success metrics. According to HubSpot's research, 89% of customers with a unified platform use it daily across various teams, leading to a 107% increase in leads, a 35% rise in closed deals, and a 28% improvement in ticket resolution. Furthermore, 80% of HubSpot customers report seeing a return on investment within three months. Additionally, HubSpot Co-Founder and CTO Dharmesh Shah announced agent.ai, a professional network for AI agents. This platform will allow users to build and distribute AI agents capable of performing complex tasks, bolstering the company's agent ecosystem. This information is based on a press release statement from HubSpot, which did not provide specific details on the financial impact of these updates or the costs associated with adopting these new tools. In other recent news, HubSpot Inc . has been the subject of several notable developments. The company's Q2 2024 earnings call highlighted a 21% increase in revenue year-over-year, with the addition of over 11,200 net new customers, bringing the total to 228,000. Despite a slight decrease in average subscription revenue per customer, HubSpot's strategic shift towards an AI-powered customer platform and efficient go-to-market practices have contributed to a positive outlook. In other news, Canaccord Genuity maintained a Buy rating on HubSpot's stock, emphasizing the company's potential to achieve Rule of 40+ performance. The firm pointed out HubSpot's successful go-to-market strategy, pricing and packaging changes, and product expansion as key growth drivers. Similarly, Oppenheimer reiterated its Outperform rating on HubSpot, highlighting potential benefits from seat-based pricing changes and multi-hub dynamics. HubSpot's Chief Marketing Officer, Kipp Bodnar, was recently appointed to the Board of Directors of Similarweb (NYSE:SMWB) Ltd., a digital market intelligence company. This move is expected to enhance Similarweb's expertise in scaling SaaS businesses and driving customer engagement globally. Lastly, Citi adjusted its outlook on HubSpot shares, reducing the price target to $629 from the previous $699, while maintaining a Buy rating, citing macroeconomic challenges and broader economic factors. As HubSpot continues to innovate with AI-powered tools to enhance customer engagement and streamline GTM strategies, the company's financial metrics and market performance provide insights into its current standing and future prospects. According to InvestingPro data, HubSpot boasts a substantial market capitalization of $25.1 billion, reflecting investor confidence in its business model and growth potential. One of the standout InvestingPro Tips for HubSpot is its impressive gross profit margin, which has reached 84.51% over the last twelve months as of Q1 2023. This figure indicates HubSpot's strong ability to control costs and generate revenue efficiently from its sales, which is particularly relevant as the company invests in new AI tools and platform enhancements. Another noteworthy tip is HubSpot's expectation of net income growth this year. Despite not being profitable over the last twelve months, analysts predict the company will turn a profit this year, suggesting that the investments in AI and updates to their customer platform could be a driving force behind this anticipated financial improvement. InvestingPro data also reveals a revenue growth of 23.13% over the last twelve months, indicating a robust expansion in HubSpot's business operations. This growth is a positive sign for the company as it rolls out its new Breeze suite and other updates aimed at providing value to GTM teams. While HubSpot does not pay dividends, indicating a reinvestment strategy to fuel growth, the company has experienced a strong return over the last five years, which is an important consideration for potential investors looking at the company's track record. For readers interested in a deeper dive into HubSpot's financials and market performance, InvestingPro offers additional tips and metrics that can provide a more comprehensive understanding of the company's position and outlook. There are 11 more InvestingPro Tips available for HubSpot, which can be accessed at: https://www.investing.com/pro/HUBS

HubSpot Launches New AI, Breeze, Plus Hundreds of Product Updates at INBOUND 2024

HubSpot launched Breeze, its embedded AI with new Copilot and Agents; Breeze Intelligence for data enrichment; and updates to Marketing Hub and Content Hub that give marketers new tools for growth. In fact, most GTM teams: Are inefficient, switching between an average of 15 separate point solutions to just manage customer interactions. Aren't getting value from their tech stacks, according to nearly 80% of leaders. Are working with disconnected data, with 7 in 10 businesses feeling this pain. At INBOUND 2024 and in its Fall 2024 Spotlight, HubSpot revealed how it's changing this reality for marketing, sales, and service teams by doubling down on making its customer platform easy, fast, and unified. Everything is built so that GTM teams can unlock growth for their businesses. Featured releases include: Breeze, HubSpot's AI to power the customer platform. Breeze includes: Copilot, HubSpot's new AI companion to make work easier. Four Breeze Agents to get work done fast, from start to finish, including Content Agent, Social Media Agent, Prospecting Agent and Customer Agent. Plus 80 more features embedded across the platform, from remixing content to predicting sales forecasts. Breeze Intelligence, HubSpot's data enrichment and buyer intent solution. Breeze Intelligence includes: Data enrichment which pulls from a database of over 200 million buyer and company profiles to enrich company and contact records in HubSpot's Smart CRM. Buyer intent to help customers identify which prospects are best fit. Form shortening to increase conversion by automatically adding information Breeze Intelligence already knows. Updates to Marketing Hub and Content Hub, the combo that's giving marketers everything they need tovent, including: Tools to capture attention like Content Remix for video, which uses AI to turn a single video into a full campaign of clips, audio and written content. Tools to generate leads and convert prospects like Lead Scoring to find high engagement, high-fit prospects and Google Enhanced Conversions to leverage first-party conversion data from HubSpot to improve campaign performance. Tools to measure impact like the new Marketing Analytics Suite, which brings all marketing metrics and reporting in one place to improve campaigns and get results faster. Across all launches, HubSpot is doubling down on easy, fast and unified because this combination is proven to lead to growth: 89% of customers with a unified platform use it daily across marketing, sales, and service to generate 107% more leads, close 35% more deals, increase ticket resolution by 28%. And 8 out of 10 HubSpot customers see a return on investment in 3 months or less.

HubSpot introduces Breeze, an AI-powered tool with copilot, agents and customer intelligence - SiliconANGLE

HubSpot introduces Breeze, an AI-powered tool with copilot, agents and customer intelligence Inbound marketing and customer relationship management platform HubSpot Inc. today introduced Breeze, the company's artificial intelligence. It underlies the entire customer solution for go-to-market teams designed with a copilot, automated AI agents and a unified view of customer management. Dylan Sellberg, director of product at HubSpot, told SiliconANGLE in an interview that although AI has promised to provide transformative value to customers and business at large, it hasn't gotten there quite yet. Part of the problem appeared to be because AI was difficult to use and it required a vast pool of data to work with. That's why HubSpot introduced Breeze, an easy-to-use AI companion and system integrated throughout the entire platform that takes advantage of the data, resources and context that the company's customers work with every day without requiring any technical expertise. "Breeze Copilot is a product that helps you use HubSpot more efficiently," said Sellberg. "It's your assistant. It's interwoven throughout the entire product. Copilot will exist on every page and every app as a panel that you can talk with, but also as an embedded element." Copilot can be summoned by marketing, sales and services teams as a chat-based AI to offer personalized insights and recommendations about leads, customers and engagements. It is aware of the full context of what's happening on the screen - including, for example, if there's a list page with 50 contacts on it. Many marketers or service reps might have this common behavior of opening 10 or 20 tabs and jumping between them. The AI can still read through all of them, summarize and compare all the information in them with just one prompt. Copilot is also embedded directly into pages as a context menu so users don't need to think about what to ask. They can just invoke it directly and receive a summary immediately about what they're looking at without any extra typing, which makes it easier to use. Breeze Intelligence helps provide a more complete view of customers by bringing in data from over 200 million company and buyer profiles. In beta now, this AI-powered solution assists service workers with building up contract records, discerning buyer intent and shortening otherwise long contact forms to avoid them being abandoned by users. "Data is typically hard to get about your customers," said Sellberg. "It can be scattered across the internet, different puzzle pieces, and when businesses can't put that together, they're not getting the full picture. Of course, businesses can get the data, but it's hard work." With the data enrichment capability, Intelligence gets the hard work out of the way with one click by adding missing portions of customer profiles directly from HubSpot's records including firmographic, demographic and technographic attributes that are continually refreshed. Using the buyer intent capacity, marketers can set their target market, identify buyer intent signals and use that to add likely high-intent companies to their HubSpot customer relationship profiles. The AI helps marketers make these identifications using signals such as page views and other intent metrics. All available in beta, Breeze includes four automated agents that will automate tasks to give marketing, sales and service teams AI experts capable of completing work rapidly with just a prompt and a few clicks. The Breeze Content Agent provides marketers with high-quality content such as landing pages for the web, blogs and full case studies written from start to finish using a customer's brand voice based on information from HubSpot's context. It also has podcasting capability where it can write a full script, or even generate a fully AI generated voiced podcast using seven different voices. The Social Media Agent allows users to create posts that fit into the company's brand across different networks that use the company's details, audience and industry. It can generate fitting posts, and prepare and schedule them for the proper times to garner the biggest impact. The Prospecting Agent can help marketers engage leads by researching and preparing personalized outreach messages to contacts and helping craft the right messages. The Customer Agent will take over customer-facing support based on an enterprise business service and product line. It can be trained in a few clicks based on a company's knowledge base, website and blog content so that it can start helping very quickly. Of course, it can't answer every single question, so when it runs into something too complex for it to handle, it can hand off to a human service worker with all the context of the original question asked by the customer and how it handled the initial contact.

Canaccord Genuity sees positive developments for HubSpot stock with AI integration through Breeze By Investing.com

On Thursday, Canaccord Genuity maintained a Buy rating and a $600.00 price target for HubSpot Inc (NYSE:HUBS) stock. Following HubSpot's annual INBOUND customer conference and analyst day, the firm's updates were viewed as consistent with market expectations. The event highlighted the introduction of Breeze, HubSpot's enhanced AI strategy that integrates new features, co-pilots, and AI-driven agents. Breeze Intelligence was also unveiled, leveraging the recent Clearbit acquisition to enhance HubSpot's Smart CRM with data enrichment and intent signals. Additionally, Agent.ai was announced, which serves as an experimental marketplace where customers can explore and create AI agents within the HubSpot ecosystem. The analyst from Canaccord Genuity noted these innovations as positive contributions to HubSpot's narrative. Emphasis was placed on the company's ongoing strategy, which prioritizes delivering customer value through AI before focusing on monetization. This strategy remains unchanged despite the new developments. In other recent news, HubSpot Inc. has been making strides with its new AI platform, Breeze, which was showcased at the company's Inbound conference and Analyst Day. Evercore ISI maintained an In Line rating on HubSpot, highlighting the company's plan to integrate AI across its platform. BMO Capital also reiterated an Outperform rating, emphasizing the company's effective utilization of AI and strategic investments. HubSpot's new AI platform, Breeze, is designed to streamline customer engagement across marketing, sales, and service teams. The company also announced a suite of AI-powered tools and updates to its customer platform, including Breeze Intelligence, which focuses on data enrichment and buyer intent. The company has set ambitious financial targets, including a long-term operating margin target of 25% and a fiscal year 2027 operating margin target of 20-22%. Canaccord Genuity maintained a Buy rating on HubSpot's stock, citing the company's potential to achieve Rule of 40+ performance and its successful go-to-market strategy. Meanwhile, Oppenheimer reiterated its Outperform rating on HubSpot, highlighting potential benefits from seat-based pricing changes and multi-hub dynamics. As HubSpot Inc (NYSE:HUBS) continues to make strides in AI innovation and customer value, Canaccord Genuity's maintained Buy rating and price target seem to be backed by a number of positive indicators. According to InvestingPro data, HubSpot boasts a robust gross profit margin of 84.51% as of the last twelve months leading up to Q2 2024, underlining the company's ability to maintain high profitability on its services. Additionally, the company has experienced a healthy revenue growth of 23.13% over the same period, indicating a strong market demand for its offerings. While HubSpot is trading at a high Price / Book multiple of 16.16, suggesting a premium valuation, InvestingPro Tips reveal that analysts predict the company will become profitable this year, which could justify the premium. Furthermore, the company's stock price movements have been quite volatile, which could present opportunities for investors looking for high-growth potential in the technology sector. For those interested in further insights, InvestingPro offers additional tips that delve deeper into HubSpot's financial health and market position. It's also worth noting that HubSpot does not pay a dividend to shareholders, which is common for growth-oriented tech companies that prefer to reinvest earnings back into the business. With a market cap of $25.87 billion and a forward-looking approach to AI, HubSpot's strategic direction appears to be on a promising trajectory. For a more comprehensive analysis, readers can explore the full suite of InvestingPro Tips available at https://www.investing.com/pro/HUBS.

HubSpot To Gain Market Share With AI Innovations and Strong Retention, Bullish Analyst Says - HubSpot (NYSE:HUBS)

Analyst Bracelin is optimistic about HubSpot's growth, citing AI innovations, partner support, and improving trends through July and August. Piper Sandler analyst Brent Bracelin maintained an Overweight rating on HubSpot Inc HUBS with a $570 price target. Bracelin expects HubSpot to gain market share due to its highly efficient GTM effort combined with organic product development, which results in customer satisfaction and structurally higher gross dollar retention in the high 80s. The analyst noted that the company is increasing, expanding at three times the market's 11% rate over the last four years, yet its share is still a tiny 4%. Also Read: HubSpot Analysts Cut Their Forecasts After Q2 Results In the near term, HubSpot faces headwinds in macro and foreign exchange, but the company expects to recover quickly when the economy strengthens. Bracelin attended the HubSpot customer conference (Inbound) and analyst day in Boston, MA, which left him incrementally positive that moving past the election or interest rate cuts could spur new customer spending growth. The analyst remains impressed with HubSpot's product innovations, which drive substantial customer net additions and above-market growth despite two years of challenging macroeconomic conditions. The company discussed a new series of AI product innovations, Bracelin flagged. Partner and customer discussions indicate incremental bullishness on demand trends moving into 2025. The company also updated its long-term operating margin target from 20%-25% to 25%. Agency partners remain committed to the HubSpot platform and, despite a change in commission structure, continue to drive net new business for the company, the analyst noted. CEO Yamini Rangan's keynote address highlighted the key challenge for HubSpot's customers over the last two years. Bracelin noted that this challenge is highly correlated to the recent interest rate cycle, making attracting and retaining customers more demanding. Management continues accelerating AI product development with several new modules released at Inbound 2024. During the keynote session, Bracelin noted that CTO and co-founder Dharmesh Shah highlighted HubSpot's development of a "LinkedIn"-style interface where customers can search for and utilize AI agents for various use cases. Based on partner discussions, the analyst summarized his conclusions. Near-term trends are improving, with July and August being better than May and June, Bracelin noted. Bracelin spoke with several ZoomInfo Technologies Inc ZI partners and direct customers, who indicated that more SMB churn could be on the company's horizon. During the formal investor session, management highlighted core tenets of the HubSpot platform, including ease of use, fast time to value, and a unified platform built organically, the analyst noted. The company discussed usage-based pricing for the first time, which could be on the horizon. Bracelin projected fiscal 2024 revenue of $2.57 billion and EPS of $7.66. Price Action: HUBS stock is up 4.86% at $528.52 at the last check on Thursday. Photo via Company Market News and Data brought to you by Benzinga APIs