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 managemen ...

Here's our initial take on HubSpot's (HUBS 0.13%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue$581.9 million$703.1 million+21%BeatAdjusted earnings per share$1.83$2.42+32%BeatCustomers205,091247,939+21%n/aSubscription revenue per customer$11,365$11,312-1%n/aSolid Growth, But a Slowdown Is ComingHubSpot easily beat analyst expectations for both revenue and adjusted earnings per share in the fourth quarter. Both revenue and the total customer count jumped by 21% ...

Employee Growth and Management - The company had 8,246 full-time employees as of December 31, 2024, up from 7,663 as of December 31, 2023, indicating significant growth in headcount[100]. - The company relies heavily on its management team and key employees, and the loss of any could adversely affect its business[128]. - The company competes for skilled personnel in a highly competitive market, which may hinder its ability to execute its business strategy[129]. - The company faces challenges in maintaining its corporate culture with a hybrid workforce model, which could impact innovation and employee retention[127]. Revenue and Financial Performance - The company generated a net income of $4.6 million in 2024, compared to net losses of $164.5 million in 2023 and $107.3 million in 2022, resulting in an accumulated deficit of $799.8 million as of December 31, 2024[202]. - The company has $640.0 million of U.S. federal and $723.7 million of state net operating loss carryforwards, with state losses beginning to expire in 2027[201]. - The company has a history of fluctuating quarterly operating results, making future performance difficult to predict[205]. - The company’s efforts to grow its business may incur significant costs that could exceed revenue increases, impacting profitability[202]. Market Competition and Strategy - The company faces intense competition in the software market, which could impact its ability to add new customers and retain existing ones[94]. - The company’s growth strategy includes a scalable pricing model, but if cross-selling efforts are unsuccessful, revenue and operating results may suffer[91]. - The company’s ability to maintain its thought leadership position is crucial for attracting new customers and retaining existing ones[104]. - The company’s brand development is critical for achieving widespread awareness and attracting new customers, with significant past investments yielding strong brand recognition[105]. Subscription and Revenue Risks - The company relies heavily on subscription renewals, with most agreements being one year or less, which poses a risk to future revenue if renewal rates decline[92]. - The company’s subscription-based revenue recognition may not immediately reflect declines in new or renewed subscriptions, potentially impacting future financial results[93]. Investment and Development - The company must continue to invest in research and development to remain competitive, particularly in AI and machine learning, or risk losing market opportunities[111]. - The company has made significant investments in developing next-generation solutions, including AI and machine learning technologies, but market acceptance remains uncertain[112]. - The company is investing in AI technologies, but ethical concerns and potential regulatory scrutiny could lead to reputational harm and increased R&D costs[126]. International Operations and Risks - The company is expanding its international operations, which involves risks such as regulatory compliance, cultural differences, and currency fluctuations[123]. - The company has increased exposure to currency exchange rate fluctuations due to international operations, which may adversely affect revenue and operating results[132]. - In Q1 2024, the company implemented a hedging program to mitigate foreign exchange impacts, but there is no guarantee of its effectiveness[132]. Cybersecurity and Data Protection - The company faces significant risks related to cybersecurity, including potential unauthorized access to customer data, which could harm its reputation and lead to substantial liabilities[152]. - Cyber incidents have been increasing in sophistication and frequency, with various types of attacks such as ransomware and phishing posing ongoing threats to the company's operations[154]. - The company has experienced past security incidents, indicating a persistent risk of data breaches that could disrupt business operations and lead to financial losses[156]. - The company may incur significant costs associated with remediation and implementing additional security measures in the event of a data breach[157]. Regulatory Compliance and Legal Risks - The company is subject to various governmental regulations regarding data protection and privacy, and failure to comply could adversely affect its business[167]. - The evolving regulatory landscape for privacy and data protection may increase compliance costs and risks for the company, particularly with laws like the California Consumer Privacy Act (CCPA) and the EU General Data Protection Regulation (GDPR) imposing significant obligations[171][176]. - Non-compliance with GDPR could result in monetary penalties of up to €20 million or 4% of worldwide annual revenue, whichever is higher[176]. - The company may face legal challenges related to intellectual property rights, which could divert resources and negatively impact its business[160]. Financial Liabilities and Debt - The company incurred indebtedness of $460.0 million from the issuance of 0.375% convertible senior notes due June 1, 2025[210]. - The company’s ability to service its debt will depend on its future cash flow generation, which is subject to various external factors[210]. - The company may face increased vulnerability to adverse changes in economic conditions due to its existing indebtedness[212]. Economic and Market Conditions - Global inflation rates have risen to levels not seen in decades, potentially decreasing demand for products and increasing operating costs[135]. - Economic uncertainty may lead to reduced customer spending on the company's products, affecting growth and operating results[138]. - Catastrophic events could disrupt business operations and negatively impact financial results[231]. - The company is vulnerable to regional epidemics or global pandemics, which may adversely affect operations and financial results[232]. - Climate change poses long-term risks that could disrupt business and increase operational costs[233].

[Q4 and Full Year 2024 Financial Results](index=1&type=section&id=Q4%20and%20Full%20Year%202024%20Financial%20Results) HubSpot reported strong financial performance for Q4 and full year 2024, showing significant revenue growth, improved profitability, and robust cash flow generation [Q4 2024 Financial Performance](index=1&type=section&id=Q4%202024%20Financial%20Performance) HubSpot reported strong financial performance for Q4 2024, with total revenue increasing 21% year-over-year. The company achieved GAAP net income and significantly improved non-GAAP operating income and net income compared to the prior year Q4 2024 Financial Performance Summary | Metric | Q4 2024 (Millions) | Q4 2023 (Millions) | Year-over-Year Change | Year-over-Year Change (Constant Currency) | | :-------------------------------- | :------------------ | :------------------ | :--------- | :----------------------------- | | **Total Revenue** | $703.2 | $581.9 | 21% | 20% | | Subscription Revenue | $687.3 | $570.2 | 21% | - | | Professional Services & Other Revenue | $15.9 | $11.7 | 36% | - | | **GAAP Operating Margin** | (1.5%) | (4.0%) | +2.5 percentage points | - | | **Non-GAAP Operating Margin** | 18.9% | 17.1% | +1.8 percentage points | - | | **GAAP Net Income (Loss)** | $4.9 | ($12.4) | Not Applicable | - | | GAAP EPS (Diluted) | $0.09 | ($0.25) | Not Applicable | - | | **Non-GAAP Net Income** | $124.9 | $93.3 | 33.9% | - | | Non-GAAP EPS (Diluted) | $2.32 | $1.77 | 31.1% | - | [Full Year 2024 Financial Performance](index=1&type=section&id=Full%20Year%202024%20Financial%20Performance) For the full year 2024, HubSpot demonstrated consistent growth, with total revenue up 21% and a significant turnaround from a GAAP net loss in 2023 to a net income in 2024. Non-GAAP profitability also saw substantial improvement Full Year 2024 Financial Performance Summary | Metric | FY 2024 (Billions/Millions) | FY 2023 (Billions/Millions) | Year-over-Year Change | Year-over-Year Change (Constant Currency) | | :-------------------------------- | :------------------ | :------------------ | :--------- | :----------------------------- | | **Total Revenue** | $2.63 billion | $2.17 billion | 21% | 21% | | Subscription Revenue | $2.57 billion | $2.12 billion | 21% | - | | Professional Services & Other Revenue | $58.0 | $46.8 | 24% | - | | **GAAP Operating Margin** | (2.6%) | (9.3%) | +6.7 percentage points | - | | **Non-GAAP Operating Margin** | 17.5% | 15.5% | +2.0 percentage points | - | | **GAAP Net Income (Loss)** | $4.6 | ($164.5) | Not Applicable | - | | GAAP EPS (Diluted) | $0.09 | ($3.30) | Not Applicable | - | | **Non-GAAP Net Income** | $434.1 | $313.1 | 38.6% | - | | Non-GAAP EPS (Diluted) | $8.12 | $6.00 | 35.3% | - | [Balance Sheet and Cash Flow Highlights](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights) HubSpot significantly increased its cash and investments balance and generated strong operating and free cash flow in both Q4 and the full year 2024, indicating robust liquidity and financial health Balance Sheet Highlights (in Billions of US dollars) | Metric | As of Dec 31, 2024 | As of Dec 31, 2023 | Year-over-Year Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :--------- | | Cash, Cash Equivalents, & Investments | $2.2 billion | $1.33 billion | 65.4% | Q4 2024 Cash Flow Highlights (in Millions of US dollars) | Metric | Q4 2024 | Q4 2023 | Year-over-Year Change | | :------------------------------------ | :------------------ | :------------------ | :--------- | | Cash from Operating Activities | $194.1 | $104.3 | 86.1% | | Non-GAAP Operating Cash Flow | $198.6 | $108.7 | 82.7% | | Non-GAAP Free Cash Flow | $163.0 | $83.0 | 96.4% | Full Year 2024 Cash Flow Highlights (in Millions of US dollars) | Metric | FY 2024 | FY 2023 | Year-over-Year Change | | :------------------------------------ | :------------------ | :------------------ | :--------- | | Cash from Operating Activities | $598.6 | $351.0 | 70.5% | | Non-GAAP Operating Cash Flow | $615.6 | $392.5 | 56.8% | | Non-GAAP Free Cash Flow | $488.1 | $292.5 | 66.9% | [Recent Business Highlights](index=3&type=section&id=Recent%20Business%20Highlights) HubSpot's CEO emphasized a transformative year with significant AI integration, while the company continued to expand its customer base and calculated billings [CEO Commentary and Strategic Direction](index=3&type=section&id=CEO%20Commentary%20and%20Strategic%20Direction) CEO Yamini Rangan highlighted 2024 as a transformative year for HubSpot, emphasizing the company's leadership as a platform company and its significant progress in embedding AI across its products. The strategic focus for 2025 is to solidify its position as the leading AI-first customer platform for scaling companies - HubSpot's CEO, Yamini Rangan, stated that 2024 was a transformative year, marked by reimagining products, platform, and company with AI. The company made significant progress in embedding AI across its hubs, driving value for customers[5](index=5&type=chunk) - Heading into 2025, HubSpot is focused on cementing its position as the **leading AI-first customer platform** for scaling companies, with increased clarity on strategy, alignment on outcomes, and urgency in execution[5](index=5&type=chunk) [Customer and Revenue Metrics](index=3&type=section&id=Customer%20and%20Revenue%20Metrics) HubSpot continued to expand its customer base, growing 21% year-over-year, while calculated billings also saw strong growth. Average Subscription Revenue Per Customer remained stable Customer Count | Metric | As of Dec 31, 2024 | As of Dec 31, 2023 | Year-over-Year Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Customers | 247,939 | 204,900 (approx) | 21% | Q4 2024 Revenue Metrics (in US dollars/Millions of US dollars) | Metric | Q4 2024 | Q4 2023 | Year-over-Year Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Average Subscription Revenue Per Customer | $11,312 | $11,369 (approx) | (0.5%) | | Calculated Billings | $767.6 million | $661.7 million (approx) | 16% | | Calculated Billings (Constant Currency) | - | - | 21% | [Business Outlook](index=3&type=section&id=Business%20Outlook) HubSpot provided optimistic financial guidance for Q1 and the full year 2025, projecting continued revenue growth and improved profitability [First Quarter 2025 Guidance](index=3&type=section&id=First%20Quarter%202025%20Guidance) HubSpot provided guidance for Q1 2025, projecting continued revenue growth and positive non-GAAP operating income and net income per share Q1 2025 Financial Guidance (in Millions of US dollars, except per share amounts) | Metric | Q1 2025 Guidance | Year-over-Year Growth (As-reported) | Year-over-Year Growth (Constant Currency) | | :-------------------------------- | :-------------------------- | :----------------------- | :----------------------------- | | Total Revenue | $697.0 - $699.0 | 13% | 15% | | Non-GAAP Operating Income | $98.0 - $99.0 | - | - | | Non-GAAP Operating Profit Margin | 14% | - | - | | Non-GAAP Net Income Per Common Share | $1.74 - $1.76 | - | - | | Weighted Average Diluted Shares Outstanding | ~54.1 million | - | - | [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) For the full year 2025, HubSpot anticipates sustained revenue growth and further expansion of non-GAAP operating income and net income per share, reflecting confidence in its strategic initiatives Full Year 2025 Financial Guidance (in Billions/Millions of US dollars, except per share amounts) | Metric | FY 2025 Guidance | Year-over-Year Growth (As-reported) | Year-over-Year Growth (Constant Currency) | | :-------------------------------- | :-------------------------- | :----------------------- | :----------------------------- | | Total Revenue | $2.985 billion - $2.995 billion | 14% | 16% | | Non-GAAP Operating Income | $543.0 - $547.0 | - | - | | Non-GAAP Operating Profit Margin | 18% | - | - | | Non-GAAP Net Income Per Common Share | $9.11 - $9.19 | - | - | | Weighted Average Diluted Shares Outstanding | ~53.9 million | - | - | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for 2024 reveal HubSpot's strengthened balance sheet, improved operational profitability, and robust cash flow generation [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) HubSpot's balance sheet as of December 31, 2024, shows a significant increase in total assets, driven by higher cash and investments, and a corresponding increase in total stockholders' equity Consolidated Balance Sheets (in thousands of US dollars) | Metric | December 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------------ | :------------------ | | **Assets** | | | | Cash and cash equivalents | $512,667 | $387,987 | | Short-term investments | $1,556,828 | $1,000,245 | | Total current assets | $2,633,603 | $1,871,540 | | Total assets | $3,795,833 | $3,071,392 | | **Liabilities and stockholders' equity** | | | | Convertible senior notes (current) | $458,184 | — | | Deferred revenue (current) | $784,253 | $672,150 | | Total current liabilities | $1,573,399 | $942,008 | | Total liabilities | $1,887,547 | $1,737,044 | | Total stockholders' equity | $1,908,286 | $1,334,348 | | Total liabilities and stockholders' equity | $3,795,833 | $3,071,392 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations highlight HubSpot's revenue growth and improved profitability for both the fourth quarter and full year 2024, with a notable shift from operating loss to net income on a GAAP basis Consolidated Statements of Operations (in thousands of US dollars, except per share data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | Total revenue | $703,172 | $581,914 | $2,627,543 | $2,170,230 | | Gross profit | $599,800 | $494,473 | $2,234,278 | $1,831,868 | | Loss from operations | ($10,849) | ($23,152) | ($67,602) | ($200,929) | | Total other income | $23,793 | $15,098 | $96,279 | $50,354 | | Income (loss) before income tax expense | $12,944 | ($8,054) | $28,677 | ($150,575) | | Net income (loss) | $4,935 | ($12,414) | $4,628 | ($164,510) | | Net income (loss) per share, diluted | $0.09 | ($0.25) | $0.09 | ($3.30) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) HubSpot's cash flow statements demonstrate strong cash generation from operating activities, significantly increasing year-over-year for both the quarter and full year, contributing to a net increase in cash and cash equivalents Consolidated Statements of Cash Flows (in thousands of US dollars) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | Net cash provided by operating activities | $194,141 | $104,313 | $598,599 | $350,971 | | Net cash used in investing activities | ($85,508) | ($266,448) | ($515,861) | ($334,766) | | Net cash provided by financing activities | $10,061 | $6,648 | $53,495 | $37,011 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $102,607 | ($146,658) | $124,680 | $57,865 | | Cash, cash equivalents and restricted cash, end of period | $516,720 | $392,040 | $516,720 | $392,040 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, offering a clearer view of HubSpot's underlying operational performance [Reconciliation of Non-GAAP Operating Income and Margin](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Operating%20Income%20and%20Margin) HubSpot's non-GAAP operating income and margin significantly improved in both Q4 and full year 2024, primarily by excluding stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and restructuring charges Reconciliation of Non-GAAP Operating Income and Margin (in thousands of US dollars, except percentages) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | GAAP operating loss | ($10,849) | ($23,152) | ($67,602) | ($200,929) | | Stock-based compensation | 134,388 | 113,726 | 504,770 | 432,271 | | Amortization of acquired intangible assets | 2,527 | 1,304 | 9,557 | 5,311 | | Acquisition related expense | 5,863 | 3,906 | 9,496 | 3,906 | | Restructuring charges | 1,143 | 3,547 | 3,990 | 96,843 | | **Non-GAAP operating income** | **$133,072** | **$99,331** | **$460,211** | **$337,402** | | GAAP operating margin | (1.5%) | (4.0%) | (2.6%) | (9.3%) | | **Non-GAAP operating margin** | **18.9%** | **17.1%** | **17.5%** | **15.5%** | [Reconciliation of Non-GAAP Net Income](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Net%20Income) Non-GAAP net income and diluted EPS saw substantial increases, reflecting the exclusion of non-cash and non-recurring items such as stock-based compensation, acquisition-related expenses, and the tax effects of these adjustments Reconciliation of Non-GAAP Net Income (in thousands of US dollars, except per share amounts) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | GAAP net income (loss) | $4,935 | ($12,414) | $4,628 | ($164,510) | | Stock-based compensation | 134,388 | 113,726 | 504,770 | 432,271 | | Acquisition related expense | 5,863 | 3,906 | 9,496 | 3,906 | | Amortization of acquired intangibles assets | 2,527 | 1,304 | 9,557 | 5,311 | | Restructuring charges | 1,143 | 3,547 | 3,990 | 96,843 | | Non-cash interest expense for amortization of debt issuance costs | 511 | 509 | 2,012 | 1,986 | | (Gain)/loss on strategic investments | (1,307) | 1,723 | (15,854) | 1,627 | | Income tax effects of non-GAAP items | (23,205) | (18,972) | (84,481) | (64,339) | | **Non-GAAP net income** | **$124,855** | **$93,329** | **$434,118** | **$313,095** | | Non-GAAP net income per share: Diluted | $2.32 | $1.77 | $8.12 | $6.00 | | Shares used in non-GAAP per share calculations: Diluted | 53,867 | 52,621 | 53,444 | 52,188 | [Reconciliation of Non-GAAP Expense and Expense as a Percentage of Revenue](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Expense%20and%20Expense%20as%20a%20Percentage%20of%20Revenue) HubSpot's non-GAAP expenses across various categories (Cost of Subscription, R&D, S&M, G&A) were lower than GAAP figures, leading to improved expense percentages relative to revenue, reflecting the exclusion of non-cash items like stock-based compensation and amortization Reconciliation of Non-GAAP Expense and Expense as a Percentage of Revenue (in thousands of US dollars, except percentages) | Metric | Q4 2024 Non-GAAP | Q4 2023 Non-GAAP | FY 2024 Non-GAAP | FY 2023 Non-GAAP | | :------------------------------------ | :---------------- | :---------------- | :---------------- | :---------------- | | COS, Subscription | $80,821 | $69,211 | $305,740 | $268,900 | | COS, Professional services & other | $12,723 | $12,567 | $51,915 | $49,729 | | R&D | $144,553 | $125,850 | $529,123 | $418,537 | | S&M | $276,139 | $228,670 | $1,071,504 | $925,045 | | G&A | $55,864 | $46,285 | $209,050 | $170,617 | | **Non-GAAP expense as a percentage of revenue** | | | | | | COS, Subscription | 11.5% | 11.9% | 11.6% | 12.4% | | COS, Professional services & other | 1.8% | 2.2% | 2.0% | 2.3% | | R&D | 20.6% | 21.6% | 20.1% | 19.3% | | S&M | 39.3% | 39.3% | 40.8% | 42.6% | | G&A | 7.9% | 8.0% | 8.0% | 7.9% | [Reconciliation of Non-GAAP Subscription Margin](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Subscription%20Margin) HubSpot's non-GAAP subscription margin and margin percentage improved slightly in 2024 compared to 2023, reflecting the exclusion of stock-based compensation and amortization of acquired intangible assets from GAAP figures Reconciliation of Non-GAAP Subscription Margin (in thousands of US dollars, except percentages) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | GAAP subscription margin | $597,811 | $496,561 | $2,232,668 | $1,839,804 | | Stock-based compensation | 6,802 | 3,542 | 23,613 | 12,652 | | Amortization of acquired intangible assets | 1,882 | 911 | 7,525 | 2,123 | | **Non-GAAP subscription margin** | **$606,495** | **$501,014** | **$2,263,806** | **$1,854,579** | | GAAP subscription margin percentage | 87.0% | 87.1% | 86.9% | 86.6% | | **Non-GAAP subscription margin percentage** | **88.2%** | **87.9%** | **88.1%** | **87.3%** | [Reconciliation of Non-GAAP Cash Flow](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Cash%20Flow) HubSpot's non-GAAP operating cash flow and free cash flow significantly increased in both Q4 and full year 2024, demonstrating strong cash generation after adjusting for restructuring charges, property and equipment purchases, and capitalized software development costs Reconciliation of Non-GAAP Cash Flow (in thousands of US dollars) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------- | :------- | :------- | :------- | | GAAP net cash provided by operating activities | $194,141 | $104,313 | $598,599 | $350,971 | | Payment of restructuring charges | 4,490 | 4,409 | 17,027 | 41,573 | | **Non-GAAP operating cash flow** | **$198,631** | **$108,722** | **$615,626** | **$392,544** | | Purchases of property and equipment | (12,726) | (8,687) | (37,939) | (33,718) | | Capitalization of software development costs | (22,915) | (17,084) | (89,636) | (66,372) | | **Non-GAAP free cash flow** | **$162,990** | **$82,951** | **$488,051** | **$292,454** | [Reconciliation of Forecasted Non-GAAP Guidance](index=13&type=section&id=Reconciliation%20of%20Forecasted%20Non-GAAP%20Guidance) HubSpot provided reconciliations for its Q1 and full year 2025 non-GAAP operating income and net income per share guidance, adjusting for stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, restructuring charges, and income tax effects Reconciliation of Forecasted Non-GAAP Operating Income Guidance (in thousands of US dollars, except percentages) | Metric | Q1 2025 Forecast | FY 2025 Forecast | | :------------------------------------ | :---------------- | :---------------- | | GAAP operating loss range | ($34,027)-($33,027) | ($38,392)-($34,392) | | Stock-based compensation | 121,662 | 544,072 | | Amortization of acquired intangible assets | 2,600 | 10,400 | | Acquisition related expense | 6,615 | 22,320 | | Restructuring charges | 1,150 | 4,600 | | **Non-GAAP operating income range** | **$98,000-$99,000** | **$543,000-$547,000** | Reconciliation of Forecasted Non-GAAP Net Income Guidance (in thousands of US dollars, except per share amounts) | Metric | Q1 2025 Forecast | FY 2025 Forecast | | :------------------------------------ | :---------------- | :---------------- | | GAAP net (loss) income range | ($15,018)-($13,768) | $10,304-$15,304 | | Stock-based compensation | 121,662 | 544,072 | | Amortization of acquired intangible assets | 2,600 | 10,400 | | Acquisition related expense | 6,615 | 22,320 | | Non-cash interest expense for amortization of debt issuance costs | 491 | 837 | | Restructuring charges | 1,150 | 4,600 | | Income tax effects of non-GAAP items | (23,500)-(23,750) | (101,533)-(102,533) | | **Non-GAAP net income range** | **$94,000-$95,000** | **$491,000-$495,000** | | Non-GAAP net income per diluted share | $1.74-$1.76 | $9.11-$9.19 | [Explanation of Non-GAAP Financial Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) HubSpot utilizes non-GAAP financial measures to provide investors with a clearer understanding of its operational performance by excluding certain non-cash or non-recurring items. These adjustments aim to offer a more consistent comparison across periods and with peers, covering metrics like operating income, net income, subscription margin, expenses, and cash flows - Non-GAAP financial measures are used to supplement GAAP results, helping investors understand short-term and long-term financial and operational trends by excluding non-cash or non-recurring items that vary in frequency and impact on continuing operations[9](index=9&type=chunk)[27](index=27&type=chunk)[31](index=31&type=chunk) - Key adjustments for non-GAAP measures include **stock-based compensation**, **amortization of acquired intangible assets**, **acquisition-related expenses**, **non-cash interest expense**, **gains/losses on strategic investments**, and **restructuring charges**, with a fixed long-term projected tax rate of **20%** applied to non-GAAP items[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - Calculated billings are defined as total revenue plus the sequential change in total deferred revenue. Non-GAAP operating cash flow adds restructuring charges paid to GAAP operating cash flow, while non-GAAP free cash flow further subtracts purchases of property and equipment and capitalized software development costs[28](index=28&type=chunk) - Constant currency amounts are presented to assess operating performance excluding foreign exchange rate fluctuations, converting current period results for non-USD entities using average exchange rates from the comparative period[29](index=29&type=chunk)[30](index=30&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides background on HubSpot's platform, details for the financial results conference call, and important cautionary language regarding forward-looking statements [About HubSpot](index=5&type=section&id=About%20HubSpot) HubSpot is a customer platform designed to help businesses connect and grow, offering a unified platform with AI-powered engagement hubs, a Smart CRM, and an extensive ecosystem of integrations, community, and educational content - HubSpot provides a customer platform that helps businesses connect and grow, featuring **AI-powered engagement hubs**, a **Smart CRM**, and an ecosystem with over **1,700 App Marketplace integrations**, a community network, and educational content[12](index=12&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) HubSpot hosted a conference call on February 12, 2025, to discuss its Q4 and full year 2024 financial results and business outlook. Registration and archived webcast information are available on the investor relations website - HubSpot held a conference call on **February 12, 2025**, at **4:30 p.m. ET** to discuss Q4 and full year 2024 financial results and business outlook. Registration links and an archived webcast are available on ir.hubspot.com[10](index=10&type=chunk)[11](index=11&type=chunk) [Cautionary Language Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Language%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding future financial and operational performance, growth expectations, and market trends. These statements are subject to various risks and uncertainties, including those related to customer retention, market growth, technology development, macroeconomic factors, and regulatory changes, and actual results may differ materially - The press release includes forward-looking statements concerning future financial and operational performance, growth, foreign currency movement, business outlook, and market leadership, based on current views and assumptions[13](index=13&type=chunk) - Actual results may differ materially due to risks such as historical losses, ability to retain and acquire customers, market growth, product differentiation (including AI/ML), effective growth management, geopolitical conflicts, inflation, and regulatory developments on AI/ML[13](index=13&type=chunk)[14](index=14&type=chunk) - HubSpot assumes no obligation to update any forward-looking statements due to new information, future events, or otherwise[14](index=14&type=chunk)

HubSpot, Inc. (HUBS) is scheduled to report fourth-quarter 2024 results on Feb. 12, after the closing bell. In the last reported quarter, the company reported an earnings surprise of 15.34%. It pulled off a trailing four-quarter earnings surprise of 15.35%, on average.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company is expected to report higher revenues year over year, backed by growing customer proliferation for its Service Hub, Marketing Hub and Sales Hub applications and ...

Wall Street expects a year-over-year increase in earnings on higher revenues when HubSpot (HUBS) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 12. O ...

Core Viewpoint - HubSpot (HUBS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. HubSpot's Earnings Outlook - HubSpot is projected to earn $8 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 35.8% [7]. - Over the past three months, the Zacks Consensus Estimate for HubSpot has surged by 107%, indicating a significant upward revision in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks yielding an average annual return of +25% since 1988 [6]. - HubSpot's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Shares of HubSpot (HUBS) have been strong performers lately, with the stock up 8.4% over the past month. The stock hit a new 52-week high of $779.73 in the previous session. HubSpot has gained 8.9% since the start of the year compared to the 30.3% move for the Zacks Computer and Technology sector and the 44.6% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in ...

HubSpot (HUBS) shares soared 4.4% in the last trading session to close at $758.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.6% gain over the past four weeks.HubSpot recently completed the acquisition of Frame AI and intends to integrate it into its customer AI platform Breeze. The acquisition of this AI-powered conversation intelligence platform highlights HubSpot’s ongoing efforts to combine powerful AI with an intuitiv ...