HubSpot (HUBS) Q2 Earnings: What To Expect

Jabin Bastian /
2022/08/03 4:20 am EDT

Sales and marketing software maker HubSpot (NYSE:HUBS) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter HubSpot reported revenues of $395.5 million, up 40.5% year on year, beating analyst revenue expectations by 3.31%. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter. The company added 8,247 customers to a total of 143,689.

Is HubSpot buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting HubSpot's revenue to grow 31.7% year on year to $409.4 million, slowing down from the 52.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

HubSpot Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.12%.

Looking at HubSpot's peers in the sales software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 53.5% year on year, beating analyst estimates by 4.96% and Zendesk reported revenues up 27.9% year on year, exceeding estimates by 0.62%. ZoomInfo traded up 10.5% on the results, and Zendesk traded flat on the results. Read our full analysis of ZoomInfo's results here and Zendesk's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. HubSpot is down 0.34% during the same time, and is heading into the earnings with analyst price target of $449.5, compared to share price of $328.33.

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The author has no position in any of the stocks mentioned.