categories

HOT TOPICS

NEWSLETTER

If you are considering becoming a 1M/1M premium member and would like to join our mailing list to receive ongoing information, please sign up here.

Subscribe to our Feed

Cloud Stocks: HubSpot Soars to a New High

Posted on Monday, Aug 26th 2019

Inbound-marketing software specialist HubSpot recently reported a strong second quarter that blew past expectations. The market is pleased with its strong performance and its stock has soared to a new high.

HubSpot’s Financials

HubSpot’s second quarter revenue grew 33% over the year to $163.3 million, ahead of the Street’s forecast of $157.3 million and higher than the company outlook of $156.5-$157.5 million. GAAP net loss was $17.4 million or $0.41 per share. Non-GAAP net income was $17.6 million or $0.42 per share, ahead of the market’s estimate of $0.25 per share.

By segment, subscription revenues grew 34% to $155.9 million and Professional services and other revenues grew 23% over the year to $7.4 million.

Among other operating metrics, total customers grew 35% to 64,836. Total average subscription revenue per customer fell 1% over the year to $9,913. International revenues increased 41% over the year and accounted for 40% of the quarter’s revenues.

For the third quarter, HubSpot expects revenues of $168-$169 million with non-GAAP EPS of $0.22-$0.24. The market was looking for revenues of $167.3 million with an EPS of $0.22.

Based on its strong performance, HubSpot raised its full-year guidance. For the full year, it now expects revenues of $663-$665 million with non-GAAP EPS of $1.39-$1.41. Its earlier forecast was for revenues of $655.5-$658.5 million with an EPS of $1.26-$1.30. The market was looking for revenues of $664.6 million for the year with an EPS of $1.4.

HubSpot’s Expansion

HubSpot had been investing on expanding its products and making its platform even more sticky. Its strategy is to shift from an applications company to much more of a platform company. HubSpot currently offers more than 300 integrations that have been built using its integration partners. These integrations are in addition to the 10 natively built integrations.

Cross-platform adoption has seen significant traction. Its multi-product customers have increased 80% from 14,000 a year ago to about 25,000. Its youngest product the Service Hub has surpassed 5,000 paying customers. HubSpot now plans to increase its headcount over the next couple of quarters.

HubSpot is also expanding internationally. Over the past few years, it has opened offices in Ireland, Australia, Japan, Singapore, and Columbia and does business in more than 100 countries. It recently opened its ninth international office in Paris.

In December last year, HubSpot also launched its own venture capital firm, HubSpot Ventures. The $30 million fund will focus on providing early stage funding for upcoming SaaS companies. Prior to setting up the VC, HubSpot had directly invested in nearly 10 start-ups. The Venture fund will now invest in startups that are aligned with its mission to help organizations grow better and add value to the ecosystem of companies benefiting from the HubSpot platform.

Its stock is trading at $192.93 with a market capitalization of $8.2 billion. It had touched a 52-week high of $196.79 earlier this month. It had fallen to a 52-week low of $108.39 in December last year.

This segment is a part in the series : Cloud Stocks


. Smartsheet Acquiring Bootstrapped Startups to Drive Growth
. Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups
. Netflix Price Hike Ruffles Competition
. How Will Carbon Black Differentiate?
. ServiceNow Grows Through Addition of Capital-Efficient Startups
. Zendesk and Freshworks Follow Different Acquisition Strategies
. Tableau Grows Through Small Acquisitions
. Open Platform Strategy Stands Intuit in Good Stead
. SaaS Companies NEED PaaS Strategy
. Will GoDaddy Follow the PaaS Route?
. Calling ALL PaaS Leaders
. Adobe Delivers Via PaaS
. A Look at Oracle’s 2018 M&A Activity
. What Apps Will Drive More Traction for Cloudera?
. Slack's App Focus Will Be Key to Post-IPO Success
. IBM Counts on its Cloud and Platform for the Turnaround
. Atlassian Acquires From its PaaS Marketplace
. What Should SAP Acquire to Triple its Value by 2023?
. Expect ServiceNow to Acquire From App Marketplace
. Should Alarm.com Follow a PaaS Strategy?
. Six Cloud Stock Picks Based on PaaS Prospects
. How Upwork Can Leverage the Virtual Company Trend
. Qualys Scouting For Acquisitions
. Should SAP Acquire Zendesk or Freshworks?
. HubSpot Counts on its API Strategy
. SurveyMonkey Eyes Acquisitions for Growth
. Workday Wants to Disrupt Cloud Computing Using Machine Learning
. Einstein and Open-Source Platform Lead the Charge for Salesforce
. DocuSign Prepares to Beat Rival Adobe
. Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion
. Tableau Acquisition Signals Massive Analytics Push for Salesforce
. Oracle Joins Hands with Microsoft to Take on Amazon
. GoDaddy is Making Strategic Acquisitions for the Next Level of Growth
. Alteryx Sees Strong Momentum
. Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance
. Is Slack Overvalued?
. How Will Cloudera Address the Competition?
. Zoom is Not Bothered by Cisco or Microsoft
. Domo Counts on Enterprise Revenue for Growth
. Netflix Plays with Pricing and Games to Attract Subscribers
. CrowdStrike Has a Successful IPO
. Atlassian Crosses the Billion Dollar Revenue Milestone
. ServiceNow Believes Strength Lies in Tie-ups
. Partnerships are the Mantra for BlackLine
. SurveyMonkey Counts on Enterprise Segment for Growth
. HubSpot Soars to a New High
. Intuit Pushes AI to Simplify Tax Filing
. Splunk Sees Strong Cloud Momentum
. Forescout Partners with Big Names
. Smartsheet Tapping into the Government Sector
. Salesforce Continues its Shopping Spree
. Palo Alto Networks Targets the IoT Security Market
. DocuSign Focuses on the Mortgage Sector
. Oracle Brags About Autonomous Database
. Blackbaud Acquires YourCause to Grow Addressable Market
. The Market Expects a Lot More from Adobe
. Anaplan Makes its First Acquisition Post IPO
. Activist Investor Drives Market Interest in Box
. MongoDB's Formula for Success
. Coupa Aims for $1B Revenue
. Dropbox on a Rocky Road
. Medallia Banks on Acquisitions
. IBM Banks on AI
. Time For Skepticism with Netflix
. SAP Riding High on the Cloud
. Amazon's Faster Shipping Hurting its Earnings
. ServiceNow CEO Change Signals Focus on Acquisitions
. Will Google Acquire Fitbit?
. HubSpot Focuses on Its Platform
. BlackLine Partners with Google Cloud
. Rapid7’s Focus on Cloud SIEM Pays Off
. Splunk Bets Big on Data Streaming
. Intuit's QBO Scores Big
. VMware Builds Up With Acquisitions
. Palo Alto Targets $5B Revenue by 2022
. Workday Targeting Procure-to-Pay Cycle
. Will Salesforce Acquire DocuSign?

Hacker News
() Comments

Featured Videos