What To Expect From HubSpot’s (HUBS) Q4 Earnings

Anthony Lee /
2024/02/13 2:01 am EST

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

Last quarter HubSpot reported revenues of $557.6 million, up 25.6% year on year, beating analyst revenue expectations by 4.4%. It was a strong quarter for the company, with and a decent beat of analysts' revenue estimates. The company added 9,174 customers to a total of 194,098.

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 19% year on year to $558.8 million, slowing down from the 27.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.55 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 three 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 4.2%.

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. Freshworks delivered top-line growth of 20.2% year on year, beating analyst estimates by 1% and ZoomInfo reported revenues up 4.9% year on year, exceeding estimates by 1.9%. Freshworks traded down 3% on the results, and Zoominfo was up 10.2%

Read our full analysis of Freshworks's results here and ZoomInfo's results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 7.8% over the last month. HubSpot is up 9.1% during the same time, and is heading into the earnings with analyst price target of $622.2, compared to share price of $617.1.

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