HubSpot (HUBS) Reports Q4: Everything You Need To Know Ahead Of Earnings

Anthony Lee /
2023/02/15 4:44 am EST

Sales and marketing software maker HubSpot (NYSE:HUBS) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter HubSpot reported revenues of $444 million, up 30.9% year on year, beating analyst revenue expectations by 4.2%. It was a mixed quarter for the company, with a decent beat of analyst estimates but underwhelming revenue guidance for the next quarter. The company added 8,040 customers to a total of 158,905.

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This quarter analysts are expecting HubSpot's revenue to grow 20.8% year on year to $446 million, slowing down from the 46.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.

HubSpot Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 4.48%.

Looking at HubSpot's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 35.7% year on year, beating analyst estimates by 0.93% and Freshworks reported revenues up 26.3% year on year, exceeding estimates by 2.18%. ZoomInfo traded down 4.76% on the results, and Freshworks was down 3.6%. Read our full analysis of ZoomInfo's results here and Freshworks's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.3% over the last month. HubSpot is up 13.1% during the same time, and is heading into the earnings with analyst price target of $373, compared to share price of $364.

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