Sales and marketing software maker HubSpot (NYSE:HUBS) will be reporting results tomorrow after the bell. Here's what investors should know.
HubSpot beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $617.4 million, up 23.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts' ARR (annual recurring revenue) estimates but full-year revenue guidance missing analysts' expectations. It added 11,749 customers to reach a total of 216,840.
Is HubSpot a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting HubSpot's revenue to grow 17% year on year to $619.3 million, slowing from the 25.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HubSpot has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.3% on average.
Looking at HubSpot's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 20%, beating analysts' expectations by 3%, and ZoomInfo reported a revenue decline of 5.5%, falling short of estimates by 5.3%. Freshworks traded down 5.8% following the results.
Read our full analysis of Freshworks's results here and ZoomInfo's results here.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 6% on average over the last month. HubSpot is down 22.3% during the same time and is heading into earnings with an average analyst price target of $642.3 (compared to the current share price of $455.46).
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