Latest news with #HUBS
Globe and Mail
4 days ago
- Business
- Globe and Mail
HubSpot Q2 Earnings Beat Estimates on Strong Revenue Growth
HubSpot, Inc. HUBS reported impressive second-quarter 2025 results, with both the top and bottom lines beating the respective Zacks Consensus Estimate. The software-as-a-service vendor reported a top-line expansion year over year, backed by growing user engagement across all segments. The integration of advanced AI tools, which include state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers. It has introduced connectors with ChatGPT, which is gaining significant market traction, as more than 20,000 customers have already used it during the quarter. Net Income On a GAAP basis, the company recorded a net loss of $3.3 million or a loss of 6 cents per share compared with a net loss of $14.4 million or 28 cents per share in the year-ago quarter. Non-GAAP net income was $117.3 million or $2.19 per share, up from $103.5 million or $1.94 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents. Revenues Quarterly revenues improved to $760.9 million from $637.2 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. Moreover, customers using free editions are increasingly opting for premium plans owing to greater time to value and seamless AI-powered onboarding. The top line beat the Zacks Consensus Estimate of $738 million. HubSpot added more than 9,700 net new customers during the quarter, which increased the total customer count to 267,982, up 18% year over year. Subscription revenues rose to $744.5 million, up 19% year over year. The figure surpassed the Zacks Consensus Estimate of $722.7 million. Average subscription revenues per customer increased 1% year over year to $11,310. Professional services and other revenues totaled $16.3 million, up from $13.5 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $15.21 million. Other Details Gross profit in the quarter was $638.7 million, up from $541.7 million in the year-ago quarter. Operating loss, on a GAAP basis, was $24.6 million compared with $23.9 million in the year-ago quarter. Non-GAAP operating income improved to $129.1 million from $109.3 million, with respective margins of 17% and 17.2%. Cash Flow & Liquidity In the second quarter of 2025, the company generated $164.4 million in cash from operating activities compared with $117.8 million cash generated in the year-ago quarter. As of June 30, 2025, HubSpot had $601.2 million in cash and cash equivalents, with $83.3 million in other long-term liabilities. Outlook For third-quarter 2025, HubSpot forecasts revenues in the range of $785 million to $787 million, up 17%. The company expects non-GAAP net income per share in the band of $2.56-$2.58. The anticipated range for non-GAAP operating income is $156-$157 million, representing a 20% operating profit margin. For 2025, management estimates revenues between $3.08 billion and $3.088 billion, up 17% year over year. Non-GAAP operating income is expected to be in the range of $568-$572 million, representing an 18% operating profit margin. Non-GAAP net income per share is likely to be in the range of $9.47-$9.53. Zacks Rank HubSpot currently has a Zacks Rank #4 (Sell). Ubiquiti Inc. UI carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment. Jabil, Inc. JBL currently sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 9.44%. Jabil's focus on end-market and product diversification is a key catalyst. The company's target of 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. This initiative should position Jabil well on the growth trajectory. Motorola Solutions, Inc. MSI currently carries Zacks Rank 2. Motorola delivered an earnings surprise of 8.19% in the trailing four quarters. The company expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Motorola intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. See "2nd Wave" AI stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
HubSpot (NYSE:HUBS) Beats Q2 Sales Targets, Full-Year Outlook Slightly Exceeds Expectations
Sales and marketing software maker HubSpot (NYSE:HUBS) announced better-than-expected revenue in Q2 CY2025, with sales up 19.4% year on year to $760.9 million. Guidance for next quarter's revenue was better than expected at $786 million at the midpoint, 1.4% above analysts' estimates. Its non-GAAP profit of $2.19 per share was 3.1% above analysts' consensus estimates. Is now the time to buy HubSpot? Find out in our full research report. HubSpot (HUBS) Q2 CY2025 Highlights: Revenue: $760.9 million vs analyst estimates of $739.3 million (19.4% year-on-year growth, 2.9% beat) Adjusted EPS: $2.19 vs analyst estimates of $2.12 (3.1% beat) Adjusted Operating Income: $129.1 million vs analyst estimates of $124.9 million (17% margin, 3.4% beat) The company lifted its revenue guidance for the full year to $3.08 billion at the midpoint from $3.04 billion, a 1.4% increase Management raised its full-year Adjusted EPS guidance to $9.50 at the midpoint, a 1.8% increase Operating Margin: -3.2%, in line with the same quarter last year Free Cash Flow Margin: 15.3%, down from 16.5% in the previous quarter Customers: 267,982, up from 258,258 in the previous quarter Billings: $785.3 million at quarter end, up 21.2% year on year Market Capitalization: $25.96 billion 'Q2 was another solid quarter of continued revenue growth and customer expansion,' said Yamini Rangan, Chief Executive Officer at HubSpot. Company Overview Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, HubSpot grew its sales at a decent 23.1% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers. This quarter, HubSpot reported year-on-year revenue growth of 19.4%, and its $760.9 million of revenue exceeded Wall Street's estimates by 2.9%. Company management is currently guiding for a 17.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 14.9% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is healthy and implies the market is baking in success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. HubSpot's billings punched in at $785.3 million in Q2, and over the last four quarters, its growth was impressive as it averaged 20.1% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. Customer Base HubSpot reported 267,982 customers at the end of the quarter, a sequential increase of 9,724. That's roughly in line with what we've observed over the last year, confirming that the company is maintaining its sales momentum. Key Takeaways from HubSpot's Q2 Results We enjoyed seeing HubSpot beat analysts' billings expectations this quarter. We were also glad its full-year EPS guidance slightly exceeded Wall Street's estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 4.4% to $512 immediately following the results. HubSpot put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
HubSpot Q2: Can AI and ARPU Reignite Growth?
HubSpot (NYSE:HUBS) will report Q2 2025 earnings after the bell on August 6. Street expects EPS of $2.12 on $739 million in revenue, implying 16% YoY growth. The stock is down 30% YTD and trades just 8% above its 52-week low, reflecting concerns over decelerating customer spend, rising competition, and uncertain AI monetization. Q1 guidance disappointed, so investor focus will be on Q3 and full-year outlooks for signs of stabilization or continued slowdown. Beyond the top and bottom lines, pay close attention to customer metrics and unit economics. Total customer count continues to grow, but average subscription revenue per customer declined last quarter. Any further weakness there could signal rising pricing pressure or a shift toward lower-tier adoption. Analysts will watch closely for updates on seat-based pricing uptake and strategic upsell traction. Management must also reassure investors on the value of its AI-first approach. While HubSpot has rolled out Breeze AI and embedded Copilot tools, the path to revenue lift remains unclear. Commentary must move beyondfeature lists and demonstrate that AI is driving engagement, retention, or conversion. Execution toward the 2022% long-term margin target will also be important. With sentiment fragile, HubSpot's Q2 call must not only beat expectations but also provide a credible narrative for growth reacceleration and AI-driven leverage. Management needs to reestablish a clear path forward, reassuring investors that the company's strategic initiatives can translate into sustainable, profitable expansion. This article first appeared on GuruFocus.
Yahoo
23-06-2025
- Business
- Yahoo
HubSpot Becomes First CRM to Integrate Deep Research Connector with ChatGPT
HubSpot Inc. (NYSE:HUBS) is one of the best technology stocks according to Wall Street analysts. Earlier on June 4, HubSpot announced the launch of its Deep Research Connector with ChatGPT, which made the company the first CRM to offer such an integration. The new connector aims to democratize advanced technology for Small and Medium-sized Businesses/SMBs by allowing them to use the customer data within ChatGPT for powerful research capabilities and analysis. Over 250,000 businesses currently rely on HubSpot as their primary source for customer data across marketing, sales, and service, and HubSpot's internal research shows that over 75% of its customers are already using ChatGPT. Marketers can now inquire about high-converting customer segments and generate tailored nurture sequences because of the integration. Sales teams can segment target companies by various criteria to identify top expansion opportunities. A team of software developers gathered around a monitor discussing a new CRM platform. The HubSpot Deep Research Connector is designed for ease and trustworthiness. HubSpot customers with admin controls can enable the connector within ChatGPT by selecting HubSpot as a data source and authenticating their account. Once enabled by an administrator, any user in the organization can then activate it and ask questions. A critical privacy feature is that users can only access the CRM data they are permitted to view within HubSpot, which ensures data security and adherence to existing permissions. HubSpot Inc. (NYSE:HUBS) provides a cloud-based customer relationship management/CRM platform for businesses in the Americas, Europe, and the Asia Pacific. While we acknowledge the potential of HUBS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Buy 5 AI Laggards of Past Month to Tap Solid Upside in the Short Term
The artificial intelligence (AI)-driven astonishing bull run of 2023 and 2024 has suffered major hurdles in 2025. The tariff and trade policies of the Trump administration, the Fed's ambiguity over further rate cuts this year, fears of a near-term recession and the availability of a low-cost Chinese AI platform have unnerved investors. However, the technology sector has lately returned to its northward trajectory. Expectations of a U.S.-China trade deal and the ongoing negotiations with several other major trading partners of the United States boosted market participants' confidence. Despite these positives, several large-cap AI stocks provided negative returns in the past month. Surprisingly, a handful of these stocks with a favorable Zacks Rank currently offer strong price upside potential in the short term. Five such stocks are: Arista Networks Inc. ANET, HubSpot Inc. HUBS, Twilio Inc. TWLO, Adobe Inc. ADBE and Okta Inc. OKTA. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Zacks Rank #2 Arista Networks is well-positioned with the right network architecture for client-to-campus data center cloud and AI networking backed by three guiding principles. These include the best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms. ANET's EOS Smart AI Suite and Arista AVA (Autonomous Virtual Assist) enhance AI job monitoring, deep-dive analytics, and proactive performance issue resolution. Its AI suite also focuses on network security and optimization. ANET's AI-powered cloud networking solutions provide predictable performance and programmability, enabling seamless integration with third-party applications for network management, automation and orchestration. Arista AVA offers augmentation of pervasive visibility, continuous threat detection, and enforcement. The growing demand for 200- and 400-gig high-performance switching products augurs well for ANET's long-term growth. Arista Networks has an expected revenue and earnings growth rate of 18.7% and 12.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.6% in the last 60 days. The short-term average price target of brokerage firms for the stock represents an increase of 23.4% from the last closing price of $90.24. The brokerage target price is currently in the range of $87-$130. This indicates a maximum upside of 44% and a downside of 3.6%. Zacks Rank #2 HubSpot provides a cloud-based customer relationship management platform for businesses in the Americas, Europe, and the Asia Pacific. HUBS is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS' starter edition is leading to solid client additions in the lower end of the market. The integration of HubSpot AI, which includes state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, is driving more value to customers. HUBS' seat pricing model lowers the barrier for customers to get started with its business and mitigates pricing friction for upgrades. The growing adoption of inbound applications is a tailwind. HubSpot has an expected revenue and earnings growth rate of 15.4% and 15%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 37.5% from the last closing price of $544.46. The brokerage target price is currently in the range of $645-$930. This indicates a maximum upside of 70.8% and no downside. Zacks Rank #1 Twilio is a leading provider of cloud communications Platform-as-a-Service in the United States and internationally. TWLO is focusing on generative AI offerings to tap the growing opportunities in this space. In this regard, TWLO launched Customer AI technology in June 2023, which powerfully combines customer engagement platform data, generative and predictive AI, and large language models (LLMs) to unlock stronger customer relationships for brands. TWLO is integrating generative AI capabilities across its platform and every customer touchpoint. The company believes that by training LLMs for customers with their data inside its Segment customer data platform, Twilio will be able to help customers enter the AI race multiple steps ahead of their peers. TWLO has also partnered with Alphabet Inc. (GOOGL) for Google Cloud to integrate generative AI into the Twilio Flex customer engagement platform. Twilio's initiative to integrate generative and predictive AI technology across its platform is likely to boost its revenue growth over the long run. Twilio enables companies to create personalized, customer-aware experiences powered by OpenAI. Through this integration, Twilio customers will be able to use OpenAI's GPT-4 model to power new generative capabilities in Twilio Engage, its multichannel marketing solution built on the Segment Customer Data Platform. Twilio has an expected revenue and earnings growth rate of 7.9% and 22.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% in the last 60 days. The short-term average price target of brokerage firms for the stock represents an increase of 10.8% from the last closing price of $116.68. The brokerage target price is currently in the range of $75-$170. This indicates a maximum upside of 45.7% and a downside of 35.7%. Zacks Rank #2 Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users summarize documents and answer questions, saving time and helping users accomplish tasks faster. Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services that help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization. ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android. Adobe has an expected revenue and earnings growth rate of 9.5% and 11.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% in the last seven days. The average short-term price target of brokerage firms represents an increase of 29.7% from the last closing price of $378.04. The brokerage target price is currently in the range of $380-$605. This indicates a maximum upside of 60.1% and no downside. Zacks Rank #2 Okta operates as an identity partner in the United States and internationally. OKTA offers a suite of products and services used to manage and secure identities, such as Single Sign-On, which enables users to access applications in the cloud or on-premises from various devices. OKTA leverages AI through its Okta AI platform, which enhances security while improving user experience and simplifying administration. Key applications include Identity Threat Protection, Log Investigator, and Auth for GenAI. This AI-enabled platform is integrated with OKTA's Workforce Identity and Customer Identity Clouds. OKTA's Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications and data, while API Access Management enables organizations to secure APIs. Access Gateway enables organizations to extend Workforce Identity Cloud, and Okta Device Access enables end users to securely log in to devices with Okta credentials. OKTA has expected revenue and earnings growth rates of 9.4% and 16.7%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 30 days. The average short-term price target of brokerage firms represents an increase of 26.2% from the last closing price of $99. The brokerage target price is currently in the range of $75-$142. This indicates a maximum upside of 43.4% and a downside of 24.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
