What To Expect From HubSpot’s (HUBS) Q2 Earnings

Kayode Omotosho /
2023/08/01 4:04 am EDT

Sales and marketing software maker HubSpot (NYSE:HUBS) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter HubSpot reported revenues of $501.6 million, up 26.8% year on year, beating analyst revenue expectations by 5.63%. It was a strong quarter for the company, with a solid beat of analysts' revenue estimates and accelerating customer growth. The company added 9,912 customers to a total of 177,298.

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This quarter analysts are expecting HubSpot's revenue to grow 19.9% year on year to $505.5 million, slowing down from the 35.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 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 4.21%.

With HubSpot being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for sales and marketing software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 9.07% over the last month. HubSpot is up 10.3% during the same time, and is heading into the earnings with analyst price target of $546.32, compared to share price of $582.56.

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