Marketing software firm HubSpot's Q2 revenue up 19%, beats estimates
Overview
HubSpot Q2 revenue rises 19%, beating analyst expectations, per LSEG data
Adjusted net income and EBIT exceed analyst expectations, per LSEG data
Co repurchased $125 mln of common stock, indicating financial confidence
Outlook
HubSpot expects Q3 revenue between $785 mln and $787 mln
Company projects Q3 non-GAAP EPS of $2.56 to $2.58
HubSpot sees full-year revenue at $3.080 bln to $3.088 bln
Company forecasts full-year non-GAAP EPS of $9.47 to $9.53
Result Drivers
SUBSCRIPTION REVENUE - Subscription revenue rose 19%, driven by customer expansion and AI integration
PROFESSIONAL SERVICES - Professional services revenue increased 21%, reflecting strong demand
AI STRATEGY - CEO attributes growth to AI-first strategy and embedded AI features enhancing customer value
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $760.87 mln | $739.80 mln (28 Analysts) |
Q2 Adjusted Net Income | Beat | $117.30 mln | $113.60 mln (26 Analysts) |
Q2 Adjusted EBIT | Beat | $129.10 mln | $124.80 mln (28 Analysts) |
Q2 Adjusted EBIT Margin | 17.0% | ||
Q2 Gross Profit | $638.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 32 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for HubSpot Inc is $720.00, about 31.6% above its August 5 closing price of $492.16
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 62 three months ago
Press Release:
