HubSpot Q1 Earnings Beat Estimates on Solid Revenue Growth

HubSpot, Inc. HUBS reported impressive first-quarter 2025 results, with both the adjusted earnings and revenues 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. The growing adoption of inbound applications is a tailwind.  Net IncomeOn a GAAP basis, the company recorded a net loss of $21.8 million or a loss of 42 cents per share against a net income of $5.9 million or 12 cents per share in the year-ago quarter. Non-GAAP net income was $95.9 million or $1.78 per share, up from $89.1 million or $1.68 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)   HubSpot, Inc. Price, Consensus and EPS Surprise HubSpot, Inc. price-consensus-eps-surprise-chart | HubSpot, Inc. QuoteRevenuesQuarterly revenues improved to $714.1 million from $617.4 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Demand for sales hub remains strong. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. The top line beat the Zacks Consensus Estimate of $699 million.HubSpot added more than 10000 net new customers during the quarter, which increased the total customer count to 258,258, up 19% year over year. Subscription revenues rose to $698.7 million from $603.8 million, up 16% year over year. The figure surpassed the Zacks Consensus Estimate of $659.33 million. Average subscription revenues per customer declined 4% year over year to $11,038.Professional services and other revenues totaled $15.4 million, up from $13.6 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $14.42 million.Other DetailsGross profit in the quarter was $599 million, up from $522.3 million in the year-ago quarter. Operating loss, on a GAAP basis, was $27.5 million compared with $23.2 million in the year-ago quarter. Non-GAAP operating income improved to $100.3 million from $92.6 million, with respective margins of 14% and 15%.Cash Flow & LiquidityIn the first quarter of 2025, the company generated $161.6 million in cash from operating activities compared with $127.1 million cash generated in the year-ago quarter. As of March 31, 2025, HubSpot had $625 million in cash and cash equivalents, with $368.9 million in convertible senior notes.OutlookFor second-quarter 2025, HubSpot forecasts revenues in the range of $738 million to $740 million, up 16%. The company expects non-GAAP net income per share in the band of $2.10-$2.12. The anticipated range for non-GAAP operating income is $124-$125 million, representing a 17% operating profit margin. For 2025, management estimates revenues between $3.036 billion and $3.044 billion, up 16% year over year. Non-GAAP operating income is expected to be in the range of $558-$562 million, representing an 18% operating profit margin. Non-GAAP net income per share is likely to be in the range of $9.29-$9.37.Zacks RankHubSpot currently has a Zacks Rank #3 (Hold).You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesAST SpaceMobile ASTS is scheduled to release first-quarter 2025 earnings on May 12. The Zacks Consensus Estimate for earnings is pegged at a loss of 17 cents per share, indicating a decline of 6.25% from the year-ago figure. Keysight Technologies, Inc.  KEYS is scheduled to release second-quarter fiscal 2025 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.17 per share, indicating growth of 25.81% from the year-ago figure. Workday, Inc. WDAY is scheduled to release first-quarter fiscal 2026 earnings on May 22. The Zacks Consensus Estimate for earnings is pegged at $1.99 per share, indicating growth of 14.37% from the year-ago figure.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Workday, Inc. (WDAY): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks