Analyst Note
| Dan Romanoff |HubSpot reported strong results—both revenue and non-GAAP operating profit came in above the high end of guidance. Revenue growth remains impressive even as macroeconomic conditions were incrementally more challenging. Top-line performance was underscored by good billings growth, strong new customer adds, and resilient retention. Despite quarter strength, guidance was mixed, with revenues slightly light and profitability ahead. In the face of worsening macroeconomic conditions, we think guidance is solid. After minimal changes to our estimates, we keep our $395 fair value estimate. Along with most of our software names, we see shares as attractive. We continue to view HubSpot as well positioned in marketing automation software with an expanding portfolio and a robust growth profile coupled with solid execution.