HubSpot (HUBS) reported $714.14 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 15.7%. EPS of $1.78 for the same period compares to $1.68 a year ago.The reported revenue represents a surprise of +2.14% over the Zacks Consensus Estimate of $699.18 million. With the consensus EPS estimate being $1.74, the EPS surprise was +2.30%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Core Insights - HubSpot (HUBS) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and showing an increase from $1.68 per share a year ago, representing an earnings surprise of 2.30% [1] - The company achieved revenues of $714.14 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.14% and up from $617.41 million year-over-year [2] Earnings Performance - HubSpot has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong earnings performance [2] - The company had a previous quarter earnings expectation of $2.19 per share but reported $2.32, resulting in a surprise of 5.94% [1] Stock Performance - HubSpot shares have declined approximately 7.6% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.08 on revenues of $723.61 million, and for the current fiscal year, it is $9.14 on revenues of $2.98 billion [7] - The outlook for the Internet - Software industry, where HubSpot operates, is currently in the top 37% of Zacks industries, indicating a favorable environment for performance [8]

Core Insights - HubSpot reported first-quarter revenue of $714.1 million, a 16% increase year-over-year, surpassing the consensus estimate of $700.4 million [1] - The company achieved earnings per share of $1.78, exceeding the consensus estimate of $1.76, and grew its customer base to 258,258, a 19% increase year-over-year [2] - HubSpot announced a new $500 million share repurchase program and ended the quarter with $2.2 billion in cash and cash equivalents [3] Financial Performance - First-quarter subscription revenue was $698.7 million, up 16% year-over-year, while professional services and other revenue reached $15.4 million, up 13% year-over-year [1] - Calculated billings for the first quarter were $766.8 million, reflecting a 20% year-over-year increase [2] - The average subscription revenue per customer decreased by 4% year-over-year to $11,038 [2] Future Guidance - For the second quarter, HubSpot projects revenue between $738.0 million and $740.0 million, representing a 16% year-over-year increase, with earnings per share expected to be between $2.10 and $2.12 [4] - The full-year revenue guidance was raised to a range of $3.036 billion to $3.044 billion, up from the previous range of $2.9 billion to $3.0 billion [4] - Full-year earnings per share guidance was also increased to a range of $9.29 to $9.37, up from the previous range of $9.11 to $9.19 [5] Market Reaction - Following the earnings report, HubSpot's stock declined by 7.63% to $610 in after-hours trading, with a 52-week trading range of $434.84 to $881.13 [6]

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year in constant currency and 16% on an as-reported basis [7][26] - Subscription revenue increased by 16% year over year, while services and other revenue rose by 13% on an as-reported basis [26] - Domestic revenue grew 16% year over year, and international revenue growth was 19% in constant currency and 15% as reported, representing 47% of total revenue [26] - Average subscription revenue per customer was $11,000 in Q1, down 2% year over year in constant currency and 4% on an as-reported basis [27] - Net revenue retention was 102% in Q1, down two points sequentially as expected [28] - Q1 operating margin was 14%, down one point compared to the year-ago period [28] - Net income was $96 million in Q1 or $1.78 per fully diluted share [29] Business Line Data and Key Metrics Changes - Total customers grew by 19% to over 258,000 globally, with over 10,000 net customer additions in the quarter [8][27] - Large deal growth was strong, up 23% year over year, with significant momentum among the installed base [9] - Free to start conversion improved year over year, driven by better onboarding and product improvements [10] Market Data and Key Metrics Changes - The macro environment remains uncertain, with a heightened focus on value from customers [12][30] - The company is seeing strong demand across all segments, with no significant changes in demand patterns by industry or geography [51] Company Strategy and Development Direction - The company is focusing on AI adoption and has embedded AI across all hubs, aiming to create a unified customer platform [7][14] - The board has authorized a share repurchase program of up to $500 million, signaling confidence in the business and growth opportunities [8][29] - The strategy includes expanding customer agent capabilities and enhancing multi-agent orchestration [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic uncertainty but emphasizes the company's resilience and ability to deliver value [12][30] - The company expects net additions to moderate to roughly 9,000 and average subscription revenue per customer growth to be approximately flat in the coming quarters [27] - For the full year of 2025, total as-reported revenue is expected to be in the range of $3.036 billion to $3.044 billion, up 16% year over year [32] Other Important Information - The company has launched over 200 new features at its Spring Spotlight event, focusing on AI integration and customer journey enhancements [21][22] - The company is expanding its customer agent capabilities beyond the Service Hub to all Pro and Enterprise customers [20][81] Q&A Session Summary Question: Update on Agent.ai and multi-agent orchestration - Management discussed the progress of Agent.ai and the use of model context protocol for agent communication across hubs [38][40] Question: Contextualizing revised guidance and margin impact from M&A - Management explained the guidance reflects macro uncertainty and highlighted that the impact of M&A on operating profit is minimal [44][48] Question: Customer segments and hesitance in spending - Management noted that there have been no significant changes in demand patterns across segments, emphasizing the platform's essential role for customers [51][52] Question: Pricing for AI solutions and customer adoption - Management detailed the credit-based pricing model for customer agents, aiming to provide predictability and control over spending for customers [70][72] Question: Stability of gross retention and net revenue retention trends - Management confirmed strong momentum from the seat-based pricing model change, with consistent seat upgrade trends [76][78] Question: Expansion of Customer Agent beyond Service Hub - Management expressed confidence in the success of Customer Agent, noting its use across various customer interactions beyond post-sales support [81][84]

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year in constant currency and 16% on an as-reported basis [5][23] - Subscription revenue increased by 16% year over year, while services and other revenue rose by 13% on an as-reported basis [23] - Domestic revenue grew 16% year over year, and international revenue growth was 19% in constant currency and 15% as reported, representing 47% of total revenue [24] - Average subscription revenue per customer was $11,000 in Q1, down 2% year over year in constant currency and 4% on an as-reported basis [24] - Net revenue retention was 102% in Q1, down two points sequentially as expected [25] - Q1 operating margin was 14%, down one point compared to the year-ago period [26] - Net income was $96 million in Q1 or $1.78 per fully diluted share [27] - Free cash flow was $122 million or 17% of revenue in Q1 [27] Business Line Data and Key Metrics Changes - Total customers grew by 19% to over 258,000 globally, with over 10,000 net customer additions in the quarter [6][24] - Large deal growth was strong, up 23% year over year, with significant momentum among the installed base [7] - Free to start conversion improved year over year, driven by better onboarding and product improvements [8] Market Data and Key Metrics Changes - International revenue growth was 19% in constant currency, indicating strong performance in global markets [24] - The company noted a heightened focus on value among customers due to macroeconomic uncertainty [10][29] Company Strategy and Development Direction - The company is focusing on AI adoption and has embedded AI across all hubs, aiming to create a unified customer platform [11][12] - The strategy includes launching new features and enhancing existing ones to drive upmarket scalability and customer engagement [19][21] - The company has authorized a share repurchase program of up to $500 million, reflecting confidence in long-term growth opportunities [6][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but noted that business trends have not shifted dramatically [10][29] - The company expects net additions to moderate to roughly 9,000 in the coming quarters, with average subscription revenue per customer growth expected to be flat [24][29] - For the full year of 2025, total as-reported revenue is expected to be in the range of $3,036 million to $3,044 million, up 16% year over year [30] Other Important Information - The company has introduced a credit-based pricing model for AI solutions, allowing customers to start using features without additional costs [17][69] - The company is expanding its customer agent capabilities beyond the Service Hub, indicating strong early adoption and success [81] Q&A Session Summary Question: Update on Agent.ai and multi-agent orchestration - Management discussed the progress of Agent.ai and the use of model context protocol for agent communication across hubs [36][39] Question: Contextualizing revised guidance and margin impacts - Management explained that the revised guidance reflects increased macro uncertainty and that the impact of M&A on operating profit is minimal [42][48] Question: Customer segments and verticals showing hesitance - Management noted that they have not seen significant changes in demand patterns across industries, maintaining a broad and resilient customer base [49][50] Question: Share gain momentum in the mid-market - Management highlighted that they are seeing momentum across all segments, with a clear value proposition for mid-market and upmarket customers [56][58] Question: Differences in AI adoption between market segments - Management indicated that the sales pipeline remains healthy across all segments, with no significant changes in pipeline quality or velocity [60][62] Question: Pricing for AI solutions and customer adoption - Management clarified that the credit-based system is designed to provide predictability and control over spending for customers [66][69] Question: Stability of gross retention and net revenue retention - Management confirmed strong momentum from the seat-based pricing model change, with consistent seat upgrade trends [74][76] Question: Success of Customer Agent expansion - Management expressed confidence in the early success of Customer Agent, noting its use beyond post-sales support [80][82]

Financial Performance & Guidance - Q1 2025 total revenue reached $714 million, a 16% year-over-year increase, or 18% in constant currency[23] - Q1 2025 subscription revenue was $699 million, a 16% year-over-year increase[23] - Q1 2025 operating profit was $100 million, with a 14% operating profit margin[23] - Q2 2025 revenue is projected to be between $738 million and $740 million, representing a 16% year-over-year increase[25] - Full year 2025 revenue is projected to be between $3.036 billion and $3.044 billion, representing a 16% year-over-year increase[27] - The company has a strong cash position of $2.2 billion[39] Market & Product Strategy - HubSpot aims to be the 1 AI-powered customer platform for scaling companies[4] - The company estimates a total addressable market (TAM) opportunity of over $100 billion[19] - HubSpot's marketplace has over 1700 app integrations, a 10x increase over the last 5 years[15] - HubSpot has awarded over 500,000 certifications to professionals in 2024 through its Academy[15]

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, 2025 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 ...

Financial Highlights: Revenue Operating Income (Loss) Net Income (Loss) Balance Sheet and Cash Flow HubSpot Reports Q1 2025 Results CAMBRIDGE, MA (May 8, 2025) — HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the first quarter ended March 31, 2025. Exhibit 99.1 Additional Recent Business Highlights Page | 1 ● Total revenue was $714.1 million, up 16% on an as-reported basis and 18% in constant currency compared to Q1'24. o Subscription revenue w ...

Group 1 - The core idea of the report is to provide a practical handbook for omnichannel automation, aimed at helping marketing departments achieve growth certainty in digital marketing [1][5][6] - Marketing automation (MA) integrates various marketing functions into a digital marketing system, enhancing operational efficiency and promoting marketing growth [1][11][12] - MA is distinct from CRM and SCRM, focusing on full-link operations, user interactions, and nurturing [1][15][16] Group 2 - MA enables strategic growth by amplifying and accelerating marketing strategies through multi-touch data acquisition, leading to intelligent and automated operations [2][61] - The report emphasizes the importance of developing a go-to-market (GTM) strategy that aligns with MA for customer insights and marketing growth [2][3] - Companies should select MA products based on their specific needs, considering management strategies, growth goals, and lead operations [2][4] Group 3 - Focussend's advantages include strong delivery technology, content production capabilities, and a modular pricing system that reduces costs [2][5] - The report highlights the challenges faced by marketing departments in a down economy, including reduced budgets and personnel, while still being expected to drive growth [5][6] - The need for a gradual digital marketing development path is emphasized for companies lagging in digital transformation [6][29] Group 4 - The future of marketing automation is expected to integrate natural language generation AI (AIGC), enhancing creativity and reducing production barriers [29][30] - Cross-departmental collaboration between sales and marketing teams is anticipated to improve customer journey management [30][32] - The increasing importance of private domain operations aligns with marketing automation solutions, especially in the context of growing social media usage [31][32] Group 5 - MA is seen as a critical tool for enhancing organizational efficiency, transforming marketing departments from cost centers to customer growth centers [68][69] - The report indicates that effective collaboration between marketing and sales can significantly boost marketing revenue [68][69] - The focus on precision marketing through data-driven strategies is highlighted as a key competitive advantage for businesses [66][67]

Core Insights - Bandwidth Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1][4] - The company's growth is driven by increasing reliance on its cloud-based communications platform by enterprises, with a strategic focus on large enterprises and becoming a leading global CPaaS provider [2] Financial Performance - On a GAAP basis, Bandwidth's net loss for the quarter was $3.74 million, or a loss of 13 cents per share, an improvement from a net loss of $9.2 million, or 35 cents per share, in the prior-year quarter [3] - Non-GAAP net income was $11.4 million, or 36 cents per share, compared to $8.1 million, or 27 cents per share, in the prior-year quarter, beating the Zacks Consensus Estimate of 29 cents [4] - Quarterly revenues increased to $174 million from $171 million in the prior-year quarter, surpassing the consensus estimate of $169 million, driven by high demand for digital engagement and messaging services [4] Operating Metrics - Non-GAAP gross margin improved to 59%, up from 57% a year ago, due to a favorable product mix and operational efficiency [5] - Adjusted EBITDA was $22.2 million, significantly above guidance and up from $15.9 million in the prior-year period [5] Cash Flow and Liquidity - In the March quarter, net cash used in operating activities was $3.1 million, compared to cash generation of $2.5 million in the prior year [6] - As of March 31, 2025, cash and cash equivalents were $35.9 million, with convertible senior notes totaling $246.8 million [6] Future Guidance - Bandwidth anticipates continued growth, projecting revenues for 2025 to be between $745 million and $760 million, reflecting a year-over-year growth of 9-11% [7] - Adjusted EBITDA is forecasted to be in the range of $84 million to $91 million, an increase from the previous estimate of $82 million to $90 million [7] - For the second quarter, revenues are expected to be between $178 million and $180 million, with adjusted EBITDA anticipated in the range of $18 million to $20 million [8]