HubSpot(HUBS) - 2024 Q2 - Quarterly Results

Revenue Performance - Total revenue for Q2 2024 was $637.2 million, representing a 20% increase compared to Q2 2023[2] - Subscription revenue reached $623.8 million, also up 20% year-over-year[2] - Total revenue for the three months ended June 30, 2024, was $637,230,000, a 20.5% increase from $529,138,000 in the same period of 2023[17] - Subscription revenue reached $623,763,000 for the three months ended June 30, 2024, compared to $517,678,000 for the same period in 2023, reflecting a 20.4% growth[17] - For Q3 2024, total revenue is expected to be between $646.0 million and $647.0 million[7] - Full year 2024 revenue guidance is set between $2.567 billion and $2.573 billion[8] Profitability and Loss - Non-GAAP operating income was $109.3 million, compared to $76.6 million in Q2 2023, reflecting a significant improvement[2] - GAAP net loss narrowed to $14.4 million, or $0.28 per share, compared to a loss of $111.8 million, or $2.25 per share in Q2 2023[3] - The net loss for the three months ended June 30, 2024, was $14,435,000, a significant improvement from a net loss of $111,803,000 in the same period of 2023[17] - Non-GAAP net income for Q2 2024 rose to $103,548 thousand, compared to $71,846 thousand in Q2 2023, with diluted non-GAAP net income per share increasing to $1.94[21] - GAAP operating loss for Q2 2024 was $23,935 thousand, compared to a loss of $116,169 thousand in Q2 2023[20] - Non-GAAP operating income for Q2 2024 increased to $109,315 thousand, up from $76,565 thousand in Q2 2023, resulting in a non-GAAP operating margin of 17.2%[20] Cash Flow and Liquidity - The company generated $117.8 million in cash from operating activities, up from $76.5 million in Q2 2023[4] - Cash and cash equivalents at the end of the period were $801,928,000, compared to $460,371,000 at the end of June 30, 2023, showing strong liquidity[18] - Net cash provided by operating activities for the three months ended June 30, 2024, was $117,828,000, an increase from $76,543,000 in the same period of 2023[18] - Free cash flow for Q2 2024 was $92,068 thousand, an increase from $59,616 thousand in Q2 2023[25] Customer Metrics - Customer count grew to 228,054, marking a 23% increase from the previous year[5] - Average Subscription Revenue Per Customer decreased by 2% to $11,215 in Q2 2024[5] Expenses and Investments - Operating expenses totaled $565,648,000 for the three months ended June 30, 2024, slightly higher than $560,351,000 in the same period of 2023[17] - The company reported a significant increase in research and development expenses, totaling $198,180,000 for the three months ended June 30, 2024, compared to $169,955,000 in the same period of 2023[17] - The company made strategic investments totaling $3,600,000 during the three months ended June 30, 2024[18] - The company experienced a gain on strategic investments of $2,103,000 for the three months ended June 30, 2024, compared to no gains in the same period of 2023[18] Future Projections - GAAP operating income for the three months ended September 30, 2024, is forecasted to be in the range of ($31,149) to ($30,299) thousand[27] - Non-GAAP operating income for the same period is projected to be between $107,000 and $108,000 thousand[27] - GAAP net loss for the three months ended September 30, 2024, is expected to range from ($15,057) to ($13,894) thousand[28] - Non-GAAP net income for the same period is estimated to be between $100,800 and $101,850 thousand[28] - Non-GAAP net income per diluted share is projected to be between $1.89 and $1.91 for the three months ended September 30, 2024[28] Restructuring and Charges - Restructuring charges are anticipated to be between $950 and $1,100 thousand for the three months ended September 30, 2024[28] - The company expects to incur incremental restructuring charges of approximately $13 to $16 million over the remaining lease term due to facility abandonments[37] - The company plans to exclude both incremental restructuring charges and cash payments related to abandoned facilities from non-GAAP earnings metrics[37] Stock-Based Compensation - The company reported a significant increase in stock-based compensation, totaling $128,994 thousand for Q2 2024, compared to $128,003 thousand in Q2 2023[21] - Stock-based compensation for the year ended December 31, 2024, is estimated at $516,149 thousand[28] Tax Rate - The long-term projected tax rate for non-GAAP items is set at 20% to ensure consistency across reporting periods[38]