HubSpot(HUBS) ZACKS·2025-02-13 17:51Core Insights - HubSpot, Inc. (HUBS) reported strong fourth-quarter 2024 results, exceeding both revenue and earnings expectations, driven by increased user engagement across all segments [1][5]. Financial Performance - The company achieved a GAAP net income of $4.9 million or $0.09 per share, a significant improvement from a loss of $12.4 million or $0.25 per share in the same quarter last year [3]. - Non-GAAP net income rose to $124.9 million or $2.32 per share, up from $93.3 million or $1.77 per share year-over-year, beating the Zacks Consensus Estimate by $0.13 [3]. - For the full year 2024, GAAP net income was $4.6 million or $0.09 per share, compared to a loss of $164.5 million or $3.30 in 2023. Non-GAAP net income increased to $434.1 million or $8.12 per share from $313.1 million or $6 in 2023 [4]. Revenue Growth - Quarterly revenues reached $703.2 million, up from $581.9 million in the prior year, surpassing the Zacks Consensus Estimate by $30 million [5]. - Total revenues for 2024 were reported at $2.6 billion, an increase from $2.2 billion in 2023 [5]. - Subscription revenues grew to $687.3 million from $570.2 million year-over-year, while professional services and other revenues increased by 36% to $15.9 million [7]. Customer Engagement - The company added 9,800 net new customers in the quarter, bringing the total customer count to 248,000, a 21% increase year-over-year [6]. - The introduction of new tools and AI innovations, such as the Breeze Copilot, contributed to enhanced customer engagement and growth in both premium and lower market segments [6]. Cash Flow and Liquidity - HubSpot generated $194.1 million in cash from operating activities in the fourth quarter, compared to $104.3 million in the same quarter last year. For the full year 2024, cash generated from operations was $598.6 million, up from $351 million in 2023 [9]. - As of December 31, 2024, the company had $512.7 million in cash and cash equivalents, compared to $388 million in 2023 [9]. Future Outlook - For Q1 2025, HubSpot expects revenues between $697 million and $699 million, with non-GAAP operating income projected at $98 million to $99 million [11]. - For the full year 2025, revenues are anticipated to be between $2.985 billion and $2.995 billion, indicating a 14% year-over-year growth, with non-GAAP net income per share expected in the range of $9.11 to $9.19 [12].