Core Viewpoint - HubSpot, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1] Financial Performance - The company recorded a GAAP net loss of $21.8 million or a loss of $0.42 per share, compared to a net income of $5.9 million or $0.12 per share in the same quarter last year [3] - Non-GAAP net income was $95.9 million or $1.78 per share, an increase from $89.1 million or $1.68 per share year over year, beating the Zacks Consensus Estimate by $0.04 [3] - Quarterly revenues rose to $714.1 million from $617.4 million year over year, surpassing the Zacks Consensus Estimate of $699 million [3] Customer Growth - HubSpot added over 10,000 net new customers during the quarter, bringing the total customer count to 258,258, a 19% increase year over year [4] - Subscription revenues increased to $698.7 million from $603.8 million, up 16% year over year, exceeding the Zacks Consensus Estimate of $659.33 million [4] Profitability Metrics - Gross profit for the quarter was $599 million, up from $522.3 million in the prior year [6] - Non-GAAP operating income improved to $100.3 million from $92.6 million, with respective margins of 14% and 15% [6] Cash Flow and Liquidity - The company generated $161.6 million in cash from operating activities, compared to $127.1 million in the same quarter last year [7] - As of March 31, 2025, HubSpot had $625 million in cash and cash equivalents, along with $368.9 million in convertible senior notes [7] Future Outlook - For Q2 2025, HubSpot forecasts revenues between $738 million and $740 million, representing a 16% increase [8] - The company expects non-GAAP net income per share in the range of $2.10 to $2.12, with anticipated non-GAAP operating income of $124 million to $125 million, indicating a 17% operating profit margin [8] - For the full year 2025, management estimates revenues between $3.036 billion and $3.044 billion, also a 16% year-over-year increase [8][9]

HubSpot (HUBS) reported $714.14 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 15.7%. EPS of $1.78 for the same period compares to $1.68 a year ago.The reported revenue represents a surprise of +2.14% over the Zacks Consensus Estimate of $699.18 million. With the consensus EPS estimate being $1.74, the EPS surprise was +2.30%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Core Insights - HubSpot (HUBS) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and showing an increase from $1.68 per share a year ago, representing an earnings surprise of 2.30% [1] - The company achieved revenues of $714.14 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.14% and up from $617.41 million year-over-year [2] Earnings Performance - HubSpot has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong earnings performance [2] - The company had a previous quarter earnings expectation of $2.19 per share but reported $2.32, resulting in a surprise of 5.94% [1] Stock Performance - HubSpot shares have declined approximately 7.6% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.08 on revenues of $723.61 million, and for the current fiscal year, it is $9.14 on revenues of $2.98 billion [7] - The outlook for the Internet - Software industry, where HubSpot operates, is currently in the top 37% of Zacks industries, indicating a favorable environment for performance [8]

Core Insights - HubSpot reported first-quarter revenue of $714.1 million, a 16% increase year-over-year, surpassing the consensus estimate of $700.4 million [1] - The company achieved earnings per share of $1.78, exceeding the consensus estimate of $1.76, and grew its customer base to 258,258, a 19% increase year-over-year [2] - HubSpot announced a new $500 million share repurchase program and ended the quarter with $2.2 billion in cash and cash equivalents [3] Financial Performance - First-quarter subscription revenue was $698.7 million, up 16% year-over-year, while professional services and other revenue reached $15.4 million, up 13% year-over-year [1] - Calculated billings for the first quarter were $766.8 million, reflecting a 20% year-over-year increase [2] - The average subscription revenue per customer decreased by 4% year-over-year to $11,038 [2] Future Guidance - For the second quarter, HubSpot projects revenue between $738.0 million and $740.0 million, representing a 16% year-over-year increase, with earnings per share expected to be between $2.10 and $2.12 [4] - The full-year revenue guidance was raised to a range of $3.036 billion to $3.044 billion, up from the previous range of $2.9 billion to $3.0 billion [4] - Full-year earnings per share guidance was also increased to a range of $9.29 to $9.37, up from the previous range of $9.11 to $9.19 [5] Market Reaction - Following the earnings report, HubSpot's stock declined by 7.63% to $610 in after-hours trading, with a 52-week trading range of $434.84 to $881.13 [6]

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year in constant currency and 16% on an as-reported basis [7][26] - Subscription revenue increased by 16% year over year, while services and other revenue rose by 13% on an as-reported basis [26] - Domestic revenue grew 16% year over year, and international revenue growth was 19% in constant currency and 15% as reported, representing 47% of total revenue [26] - Average subscription revenue per customer was $11,000 in Q1, down 2% year over year in constant currency and 4% on an as-reported basis [27] - Net revenue retention was 102% in Q1, down two points sequentially as expected [28] - Q1 operating margin was 14%, down one point compared to the year-ago period [28] - Net income was $96 million in Q1 or $1.78 per fully diluted share [29] Business Line Data and Key Metrics Changes - Total customers grew by 19% to over 258,000 globally, with over 10,000 net customer additions in the quarter [8][27] - Large deal growth was strong, up 23% year over year, with significant momentum among the installed base [9] - Free to start conversion improved year over year, driven by better onboarding and product improvements [10] Market Data and Key Metrics Changes - The macro environment remains uncertain, with a heightened focus on value from customers [12][30] - The company is seeing strong demand across all segments, with no significant changes in demand patterns by industry or geography [51] Company Strategy and Development Direction - The company is focusing on AI adoption and has embedded AI across all hubs, aiming to create a unified customer platform [7][14] - The board has authorized a share repurchase program of up to $500 million, signaling confidence in the business and growth opportunities [8][29] - The strategy includes expanding customer agent capabilities and enhancing multi-agent orchestration [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic uncertainty but emphasizes the company's resilience and ability to deliver value [12][30] - The company expects net additions to moderate to roughly 9,000 and average subscription revenue per customer growth to be approximately flat in the coming quarters [27] - For the full year of 2025, total as-reported revenue is expected to be in the range of $3.036 billion to $3.044 billion, up 16% year over year [32] Other Important Information - The company has launched over 200 new features at its Spring Spotlight event, focusing on AI integration and customer journey enhancements [21][22] - The company is expanding its customer agent capabilities beyond the Service Hub to all Pro and Enterprise customers [20][81] Q&A Session Summary Question: Update on Agent.ai and multi-agent orchestration - Management discussed the progress of Agent.ai and the use of model context protocol for agent communication across hubs [38][40] Question: Contextualizing revised guidance and margin impact from M&A - Management explained the guidance reflects macro uncertainty and highlighted that the impact of M&A on operating profit is minimal [44][48] Question: Customer segments and hesitance in spending - Management noted that there have been no significant changes in demand patterns across segments, emphasizing the platform's essential role for customers [51][52] Question: Pricing for AI solutions and customer adoption - Management detailed the credit-based pricing model for customer agents, aiming to provide predictability and control over spending for customers [70][72] Question: Stability of gross retention and net revenue retention trends - Management confirmed strong momentum from the seat-based pricing model change, with consistent seat upgrade trends [76][78] Question: Expansion of Customer Agent beyond Service Hub - Management expressed confidence in the success of Customer Agent, noting its use across various customer interactions beyond post-sales support [81][84]

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year in constant currency and 16% on an as-reported basis [5][23] - Subscription revenue increased by 16% year over year, while services and other revenue rose by 13% on an as-reported basis [23] - Domestic revenue grew 16% year over year, and international revenue growth was 19% in constant currency and 15% as reported, representing 47% of total revenue [24] - Average subscription revenue per customer was $11,000 in Q1, down 2% year over year in constant currency and 4% on an as-reported basis [24] - Net revenue retention was 102% in Q1, down two points sequentially as expected [25] - Q1 operating margin was 14%, down one point compared to the year-ago period [26] - Net income was $96 million in Q1 or $1.78 per fully diluted share [27] - Free cash flow was $122 million or 17% of revenue in Q1 [27] Business Line Data and Key Metrics Changes - Total customers grew by 19% to over 258,000 globally, with over 10,000 net customer additions in the quarter [6][24] - Large deal growth was strong, up 23% year over year, with significant momentum among the installed base [7] - Free to start conversion improved year over year, driven by better onboarding and product improvements [8] Market Data and Key Metrics Changes - International revenue growth was 19% in constant currency, indicating strong performance in global markets [24] - The company noted a heightened focus on value among customers due to macroeconomic uncertainty [10][29] Company Strategy and Development Direction - The company is focusing on AI adoption and has embedded AI across all hubs, aiming to create a unified customer platform [11][12] - The strategy includes launching new features and enhancing existing ones to drive upmarket scalability and customer engagement [19][21] - The company has authorized a share repurchase program of up to $500 million, reflecting confidence in long-term growth opportunities [6][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but noted that business trends have not shifted dramatically [10][29] - The company expects net additions to moderate to roughly 9,000 in the coming quarters, with average subscription revenue per customer growth expected to be flat [24][29] - For the full year of 2025, total as-reported revenue is expected to be in the range of $3,036 million to $3,044 million, up 16% year over year [30] Other Important Information - The company has introduced a credit-based pricing model for AI solutions, allowing customers to start using features without additional costs [17][69] - The company is expanding its customer agent capabilities beyond the Service Hub, indicating strong early adoption and success [81] Q&A Session Summary Question: Update on Agent.ai and multi-agent orchestration - Management discussed the progress of Agent.ai and the use of model context protocol for agent communication across hubs [36][39] Question: Contextualizing revised guidance and margin impacts - Management explained that the revised guidance reflects increased macro uncertainty and that the impact of M&A on operating profit is minimal [42][48] Question: Customer segments and verticals showing hesitance - Management noted that they have not seen significant changes in demand patterns across industries, maintaining a broad and resilient customer base [49][50] Question: Share gain momentum in the mid-market - Management highlighted that they are seeing momentum across all segments, with a clear value proposition for mid-market and upmarket customers [56][58] Question: Differences in AI adoption between market segments - Management indicated that the sales pipeline remains healthy across all segments, with no significant changes in pipeline quality or velocity [60][62] Question: Pricing for AI solutions and customer adoption - Management clarified that the credit-based system is designed to provide predictability and control over spending for customers [66][69] Question: Stability of gross retention and net revenue retention - Management confirmed strong momentum from the seat-based pricing model change, with consistent seat upgrade trends [74][76] Question: Success of Customer Agent expansion - Management expressed confidence in the early success of Customer Agent, noting its use beyond post-sales support [80][82]

Financial Performance & Guidance - Q1 2025 total revenue reached $714 million, a 16% year-over-year increase, or 18% in constant currency[23] - Q1 2025 subscription revenue was $699 million, a 16% year-over-year increase[23] - Q1 2025 operating profit was $100 million, with a 14% operating profit margin[23] - Q2 2025 revenue is projected to be between $738 million and $740 million, representing a 16% year-over-year increase[25] - Full year 2025 revenue is projected to be between $3.036 billion and $3.044 billion, representing a 16% year-over-year increase[27] - The company has a strong cash position of $2.2 billion[39] Market & Product Strategy - HubSpot aims to be the 1 AI-powered customer platform for scaling companies[4] - The company estimates a total addressable market (TAM) opportunity of over $100 billion[19] - HubSpot's marketplace has over 1700 app integrations, a 10x increase over the last 5 years[15] - HubSpot has awarded over 500,000 certifications to professionals in 2024 through its Academy[15]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 001-36680 HubSpot, Inc. (Exact name of registrant as specified in its charter) Delaware 20-2632791 (State or other jurisdiction of i ...

Financial Highlights: Revenue Operating Income (Loss) Net Income (Loss) Balance Sheet and Cash Flow HubSpot Reports Q1 2025 Results CAMBRIDGE, MA (May 8, 2025) — HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the first quarter ended March 31, 2025. Exhibit 99.1 Additional Recent Business Highlights Page | 1 ● Total revenue was $714.1 million, up 16% on an as-reported basis and 18% in constant currency compared to Q1'24. o Subscription revenue w ...

Core Insights - HubSpot (HUBS) is expected to report quarterly earnings of $1.74 per share, a 3.6% increase year-over-year, with revenues forecasted at $699.18 million, reflecting a 13.2% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of projections [1][2] - Analysts predict significant growth in key metrics, including subscription revenues and total customers, which are crucial for understanding HubSpot's performance [3] Revenue Estimates - Estimated 'Revenues- Subscription' is projected at $684.96 million, showing a 13.4% increase from the prior-year quarter [4] - 'Revenues- Professional services and other' are expected to reach $14.23 million, indicating a 4.5% year-over-year change [4] Customer Metrics - Total Customers are projected to reach 257,242, up from 216,840 in the same quarter last year [4] Average Revenue Metrics - 'Average Subscription Revenue per Customer' is estimated at $10,947.53, down from $11,447 in the same quarter last year [5] - 'Gross margin (Non-GAAP)- Subscription' is expected to be $601.76 million, compared to $529.92 million a year ago [5] Stock Performance - Over the past month, HubSpot shares have increased by 26.8%, significantly outperforming the Zacks S&P 500 composite, which saw a change of +0.4% [6]