Sales and marketing software maker HubSpot (NYSE:HUBS) will be reporting earnings tomorrow afternoon. Here's what investors should know.
Last quarter HubSpot reported revenues of $339.1 million, up 48.5% year on year, beating analyst revenue expectations by 3.88%. It was a solid quarter for the company, with an exceptional revenue growth and a decent beat of analyst estimates.
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 39.8% year on year to $352.4 million, improving on the 35.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.53 per share.
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 5.18%.
Looking at HubSpot's peers in the sales and marketing software segment, only Qualtrics (NASDAQ:XM) has so far reported results, delivering top-line growth of 47.9% year on year, and beating analyst estimates by 6.18%. The stock traded up 5.97% on the results. Read our full analysis of Qualtrics's earnings results here.
Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.48% over the last month. HubSpot is down 5.79% during the same time, and is heading into the earnings with analyst price target of $816.6, compared to share price of $499.9.
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.