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].

Exhibit 99.1 Full Year 2024: Net Income (Loss) HubSpot Reports Q4 and Full Year 2024 Results CAMBRIDGE, MA (February 12, 2025) — HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the fourth quarter and full year ended December 31, 2024. Financial Highlights: Revenue Fourth Quarter 2024: Full Year 2024: Operating Income (Loss) Fourth Quarter 2024: Fourth Quarter 2024: Full Year 2024: Page | 1 ● Total revenue was $703.2 million, up 21% on an as-repo ...

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 ...

Investors might want to bet on HubSpot (HUBS) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a c ...

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 ...