HubSpot Pops On Earnings Beat, Web Marketing Software Maker’s Guidance

HubSpot earnings and revenue for the December quarter handily beat analyst estimates while the company’s outlook also came in above expectations. HUBS stock soared on the news.


Cambridge, Mass.-based HubSpot (HUBS) reported Q4 earnings after the market close on Thursday. Adjusted Q4 earnings came in at $1.11 a share, up 91% from a year earlier. Revenue climbed 27% to $469.7 million, the maker of web marketing software said.

A year earlier, HubSpot’s earnings were 58 cents a share on sales of $369 million. Analysts expected HubSpot earnings of 83 cents on sales of $445.6 million for the period ended Dec. 31.

“The near-term margin trajectory in light of slower growth has been a key hurdle for the stock, and HUBS raised its initial 2023 guide from flat year-over-year to up 250 basis points,” said UBS analyst Taylor McGinnis in a report.

HubSpot stock popped 12.4% to near 407 in early trading on the stock market today.

HUBS Stock: Earnings Forecast Beats Views

For 2023, HubSpot forecast earnings in a range of $4.24 to $4.32 a share, well above estimates of $2.85. The software maker said it expects revenue in a range of $2.05 billion to $2.06 billion, in line with estimates of $2.05 billion.

HubSpot recently reduced its workforce by 7%.

“New customer generation was a highlight, with 8,500 net adds, the highest of the year,” said Cowen analyst Derrick Wood in a report. “We believe HUBS’s effective platform strategy is driving market share gains, wallet share gains and  greenfield adoption.”

Wood added: “Despite macro headwinds for three quarters, HUBS has only seen 300 basis points of quarterly deceleration.”

HubSpot’s marketing focuses on digital channels such as blogs, internet search engines and social media. The company aims to attract people to customer websites and optimize content so that visitors are converted into paying customers.

According to IBD Stock Checkup, HUBS stock had a Relative Strength Rating of 78 out of a best-possible 99 heading into the earnings report.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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