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HubSpot (HUBS) To Report Earnings Tomorrow: Here Is What To Expect


Adam Hejl /
2022/05/04 7:44 am EDT
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Sales and marketing software maker HubSpot (NYSE:HUBS) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter HubSpot reported revenues of $369.3 million, up 46.5% year on year, beating analyst revenue expectations by 3.29%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next year exceeding analysts' estimates. The company added 7,298 customers to a total of 135,442.

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 36.1% year on year to $383 million, slowing down from the 41.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.

HubSpot Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing two upwards 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 5.23%.

Looking at HubSpot's peers in the sales software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 42.2% year on year, beating analyst estimates by 5.91% and Zendesk reported revenues up 30.2% year on year, exceeding estimates by 0.96%. Freshworks traded slightly down on the results, and Zendesk was flat on the results. Read our full analysis of Freshworks's results here and Zendesk's results here.

There has been a stampede out of high valuation technology stocks and software stocks have been swept alongside with it, with share price down on average 16.6% over the last month. HubSpot is down 26.4% during the same time, and is heading into the earnings with analyst price target of $659.6, compared to share price of $371.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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