Company Reports

We are discontinuing analyst coverage of HubSpot.

HubSpot reported second-quarter results that topped the high end of guidance on headline measures. Total revenue grew 17% year over year in constant currency to $912 million, while adjusted operating margin was 20.3%, and the outlook for the third quarter was disappointing.

We believe HubSpot is a leader in marketing and sales automation software for the midmarket. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and midmarket as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

We believe HubSpot is a leader in marketing and sales automation software for the midmarket. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and midmarket as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

HubSpot reported first-quarter results that topped the high end of guidance on headline measures. Total revenue grew 18% year over year in constant currency to $881 million, while adjusted operating margin was 17.8%, and the outlook for the second quarter was mixed versus our expectations.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

We believe HubSpot is a leader in marketing and sales automation software for the midmarket. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and midmarket as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

HubSpot reported fourth-quarter results that topped the high end of guidance for key measures. Total revenue grew 18% year over year in constant currency to $847 million, while adjusted operating margin was 22.6%, and overall 2026 guidance was solid.

We believe HubSpot is a leader in marketing and sales automation software for the midmarket. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and midmarket as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

We believe HubSpot is a leader in marketing and sales automation software for the midmarket. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and midmarket as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

HubSpot reported third-quarter results that were mixed for key measures. Total revenue grew by 18% year over year in constant currency to $810 million, which was better than the high end of guidance, while adjusted operating margin was 19.9%, which was in line with guidance.

HubSpot hosted its Inbound investor day, which focused on product innovation and underscored the firm’s artificial intelligence chops with its AI-powered platform and large slate of new AI-related solutions.

HubSpot reported second-quarter results that beat the high end of guidance for key measures. Total revenue grew by 18% year over year, as reported to $761 million, while adjusted earnings per share were $2.19, compared with the high end of guidance at $740 million and $2.12, respectively.

HubSpot is down approximately 33% from its February highs, mainly due to a combination of guidance issued on the first-quarter earnings call and a smaller-than-expected quarterly upside to quarterly results.

We believe HubSpot is a leader in marketing and sales automation software for the mid-market. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and mid-market as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

HubSpot reported first-quarter results that topped the high end of guidance for revenue and adjusted earnings per share. Total revenue grew by 16% year over year to $714 million while adjusted EPS was $1.78, compared with the high end of guidance at $699 million and $1.76, respectively.

We are raising our fair value estimate to $720 per share from $640 after narrow-moat HubSpot reported strong fourth-quarter results that were ahead of our expectations on key items. We are also encouraged by management’s remarks regarding the improvement, however modest, in the demand environment for small and midsize businesses, or SMBs. After another quarter of meaningful upside, management once again guided conservatively. As a result, we tweaked our near-term estimates lower on the top line, while inching them higher on the bottom line. Overall, we moved our estimates to just above the high end of the ranges for the year, and we think even this approach will prove conservative given recent performance and the beginning of improving trends. We also increased our profitability assumptions over the next several years, which contributes to our higher fair value estimate. We think management has done a great job and HubSpot is well-positioned, but we assume investors are even more aggressive in their models than we are based on where the stock is trading, which we view as slightly overvalued.

We believe HubSpot is a leader in marketing and sales automation software for the mid-market. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and mid-market as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Thus, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.

We're raising our fair value estimate to $640 per share from $620 after narrow-moat HubSpot reported strong third-quarter results that were ahead of our expectations for headline figures. Price versus volume trends from the last 18 months persisted, even as the firm believes the cautious demand environment is likely to continue through December, and the outlook was in line with our expectations. Although after another good quarter, we think guidance is clearly conservative. Management is encouraged by artificial intelligence attach rates and usage. We continue to view HubSpot as well positioned in the midmarket for marketing and sales automation software with an expanding and powerful portfolio and robust growth profile coupled with solid execution. Assuming after-hours trading holds, we see shares as fairly valued.

We believe HubSpot is a leader in marketing and sales automation software for the mid-market. We see a long runway for growth as it gathers new customers and continues to move its existing clients up a tiered pricing structure and sell multiple hubs to larger clients. We also see the SMB and mid-market as being underserved by enterprise software providers, as the smaller deal sizes make it harder to serve efficiently. Therefore, we believe that HubSpot’s robust and expanding suite has helped carve out a defensible niche.