As we embark on a new year, many investors are looking back at the stock market's performance over the past year and what it means for the future -- and there's plenty to be thankful for. After turning in its worst performance in more than a decade, the Nasdaq Composite returned to form, rising 43% in 2023.However, after an increase of that magnitude and the uncertainty that remains in the economy, investors are understandably asking themselves what to expect in 2024. Looking to history for insight about wh ...

Editor's note: Seeking Alpha is proud to welcome KM Capital as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Wirestock Introduction HubSpot (NYSE:HUBS) grabbed my attention because of its exponential customer base growth, which usually means high appeal of the company's services. The company's revenue moves even faster than its customer base expansion ...

Financial Performance - HubSpot's trailing twelve month (TTM) revenue reached $2.1 billion, demonstrating a year-over-year (YoY) growth of 26%[5] - The company's TTM Free Cash Flow (FCF) amounted to $280 million, resulting in a 14% margin[5] - In Q3 2023, HubSpot's revenue growth was reported at 26%, or 24% in constant currency[157] - Non-GAAP operating profit for Q3 2023 was $90 million[177] Customer Growth - HubSpot has acquired 194,000 customers, marking a 22% YoY growth[18, 176] Strategic Initiatives - HubSpot is focusing on moving from an app to a suite to a platform, emphasizing delivering value before monetization[7] - The company is leveraging AI to power its hubs and Smart CRM, including content creation, report generation, and AI-driven chatbots[24, 28, 29] - HubSpot is expanding its Total Addressable Market (TAM) and focusing on broad and efficient distribution[2, 144, 145] Company Overview - HubSpot is a Customer Relationship Management (CRM) platform for scaling companies, employing 7,500+ individuals across 120+ countries[3, 6] - The company's mission is to help millions of organizations grow better[16] - HubSpot expects to complete the Clearbit acquisition in the fourth quarter of 2023[2, 148, 172]

Revenue Growth - Subscription revenue for Q3 2023 reached $545.8 million, a 25% increase from $435.0 million in Q3 2022, while total revenue for the same period was $557.6 million, up 26% from $444.0 million[110]. - The number of customers grew from 158,905 as of September 30, 2022, to 194,098 as of September 30, 2023, contributing to the increase in subscription revenue[111]. - Average Subscription Revenue per Customer increased from $11,233 in Q3 2022 to $11,520 in Q3 2023, driven by demand for Professional and Enterprise products[111]. - Subscription revenue accounted for 98% of total revenue for both the three and nine months ended September 30, 2023, and 2022, highlighting the company's reliance on subscription-based income[99]. Operating Expenses - Total operating expenses for the nine months ended September 30, 2023, were $1.52 billion, compared to $1.12 billion for the same period in 2022, reflecting a significant investment in growth[108]. - Research and development expenses for the nine months ended September 30, 2023, were $454.5 million, up from $325.7 million in the same period in 2022, reflecting ongoing investment in product development[108]. - Sales and marketing expenses for the three months ended September 30, 2023, were $271,448,000, an 18% increase from $229,541,000 in 2022[127]. - General and administrative expenses for the three months ended September 30, 2023, were $61,308,000, a 21% increase from $50,465,000 in 2022[131]. - Restructuring charges for the three months ended September 30, 2023, amounted to $846,000, with total restructuring costs for the nine months reaching $93,296,000[134]. Financial Performance - The net loss for Q3 2023 was $5.5 million, compared to a net loss of $31.4 million in Q3 2022, indicating an improvement in financial performance[108]. - The company reported a net loss of $162.7 million for the nine months ended September 30, 2023, compared to a net loss of $97.1 million for the same period in 2022[154]. - Interest income for the three months ended September 30, 2023, was $16.2 million, a 247% increase from $4.7 million in the same period of 2022, and for the nine months, it was $40.2 million, up 457% from $7.2 million[138]. Cash Flow and Liquidity - Cash and cash equivalents increased to $535.5 million as of September 30, 2023, from $331.7 million in 2022, reflecting improved liquidity[151]. - Net cash provided by operating activities was $246.7 million for the nine months ended September 30, 2023, compared to $183.2 million in 2022[151]. - Net cash used in investing activities was $68.3 million for the nine months ended September 30, 2023, down from $211.1 million in 2022, indicating reduced investment outflows[151]. Market and Economic Conditions - The company operates in over 120 countries, serving a diverse customer base across various industries, with a focus on mid-market B2B companies[98]. - The company is evaluating the costs and benefits of initiating a hedging program for foreign currency transactions as it expands its international operations[168]. - There is ongoing uncertainty regarding economic conditions and potential measures by the Federal Reserve related to inflation risk[171]. Debt and Interest Rate Exposure - As of September 30, 2023, the outstanding amount of the 2025 convertible senior notes is $459.1 million, originally issued at $460 million[170]. - The fair value of the 2025 Notes is subject to interest rate risk and market risk, generally increasing as the company's stock price rises and decreasing as it falls[170]. - The company does not currently hedge its interest rate exposure and does not engage in trading or speculative financial instruments[169]. - The Federal Reserve has raised interest rates and may continue to do so, impacting the fair value of the 2025 Notes[170]. - The company carries the 2025 Notes at face value less unamortized discount on its balance sheet, with fair value presented for disclosure purposes only[170].

0% Acquisition related expenses 0% (367) 0% 0% 0% . 0% Loss on disposal of fixed assets 447,232 84% 127,683 -4% (33,324) (1,152) 0% . 0% 334,005 18% (836) 0% 0% 0% 40,879 8% Non-GAAP general and administrative 84,054 10% 115,821 9% 150,497 9% 41,093 8% 63,880 12% Restructuring charges 0% 0% 0% 28,570 6% : . Loss from Operations (115,499) -22% Loss from operations (50,828) (54,799) (109,101) (44,767) 128,003 83,037 121,488 166,781 275,849 -6% -4% -6% -9% 24% Stock-based compensation 14% 13% 16% 17% 851 0% Am ...

HubSpot, Inc. (NYSE:HUBS) Q2 2023 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Chuck MacGlashing - Head of Investor Relations Yamini Rangan - Chief Executive Officer Kate Bueker - Chief Financial Officer Dharmesh Shah - Co-Founder & Chief Technology Officer Conference Call Participants Samad Samana - Jefferies Elizabeth Porter - Morgan Stanley Mark Murphy - JPMorgan Rishi Jaluria - RBC Brian Peterson - Raymond James Ryan Krieger - Wolfe Research Brad Sills - Bank of America Gabrie ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36680 HubSpot, Inc. (Exact name of registrant as specified in its charter) Delaware 20-2632791 (State or other jurisdiction of in ...

Marketing Hub Digitally Mature 1 Includes Total Addressable Market for software in HubSpot's core product groups including Marketing Hub, Sales Hub, Service Hub, Operations Hub and CMS Hub. Does not include Commerce and Payments TAM. Source: IDC and HubSpot estimates as of 9/7/2022. 11 #2 Best Place to Work in 2022 by Glassdoor Best Workplaces for Millennials™ by Great Places to Work 1 Sales Hub originally launched and branded as "Sidekick". 2 ARR: Annual Recurring Revenue. Winning combination 17 Q1'17 Q1'2 ...

Financial Data and Key Metrics Changes - Revenue grew 30% year-over-year in constant currency and 27% on an as-reported basis [5][39] - Operating margin increased by 4 percentage points year-over-year to 13% [5][28] - Net income was $62 million, or $1.20 per fully diluted share [28] - Free cash flow was $85 million, representing 17% of revenue [28] - Subscription revenue per customer grew 6% year-over-year in constant currency and 3% on an as-reported basis to $11,400 [12] Business Line Data and Key Metrics Changes - Total customers grew by 23% to over 177,000, with net customer additions of over 9,900 in the quarter [5][27] - Subscription revenue grew 27% year-over-year, while services and other revenue increased 12% on an as-reported basis [39] - Gross retention remained in the high 80s, while net revenue retention was 104%, down 3 points sequentially [40] Market Data and Key Metrics Changes - Domestic revenue grew 27% year-over-year, while international revenue growth was 33% in constant currency and 26% as reported [39] - International revenue represented 46% of total revenue [39] Company Strategy and Development Direction - The company aims to become the market share leader in marketing, sales, and service for scaling companies, focusing on product innovation and a bimodal go-to-market strategy [6][7] - The bimodal strategy targets both lower-end market volume and increased value for upmarket customers [5][6] - Generative AI is seen as a transformative opportunity, enabling SMBs to generate content, insights, and code more efficiently [9][10] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, with tight budgets and cautious spending from customers [13][22] - The company expects weak macroeconomic conditions to persist throughout 2023 [13] - Management remains focused on product innovation and consistent execution to drive sustainable growth [22][24] Other Important Information - The company expects total as-reported revenue for the full year of 2023 to be in the range of $2.08 billion to $2.088 billion, up 20% year-over-year at the midpoint [41] - Non-GAAP diluted net income per share is expected to be between $4.80 and $4.85 [29] Q&A Session All Questions and Answers Question: How does the company plan on monetizing generative AI? - The company focuses on delivering customer value first, with monetization to follow as they iterate and improve use cases [32][33] Question: What is the impact of free products on margins? - The free tools strategy is designed to create a wide top-of-funnel, leading to increased conversion rates from free to paid customers [48] Question: How is the company performing in terms of vendor consolidation? - The company is seeing customers consolidate multiple tools into HubSpot, which is expected to drive long-term growth [72] Question: What is the performance of direct versus partner business? - Both direct and partner businesses are executing as planned, with a healthy balance of sales coming from both channels [82] Question: What is driving the average revenue per customer higher? - Multi-hub adoption among professional and enterprise customers is driving growth, offset by the volume of starter customers [103]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36680 HubSpot, Inc. (Exact name of registrant as specified in its charter) Delaware 20-2632791 (State or other jurisdiction of i ...