HubSpot Earnings: What To Look For From HUBS

Customer platform provider HubSpot (NYSE:HUBS) will be reporting earnings this Wednesday after market hours. Here’s what to look for.

HubSpot beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $760.9 million, up 19.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates. It added 9,724 customers to reach a total of 267,982.

Is HubSpot a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting HubSpot’s revenue to grow 17.3% year on year to $785.7 million, slowing from the 20.1% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HubSpot has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.5% on average.

Looking at HubSpot’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ZoomInfo delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 4.7%, and GoDaddy reported revenues up 10.3%, topping estimates by 2.7%. GoDaddy traded up 5.1% following the results.

Read our full analysis of ZoomInfo’s results here and GoDaddy’s results here.

Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. HubSpot is up 4.7% during the same time.

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