HubSpot Earnings: Strong New Customer Adds And Profitability Shine Within Good Results

Narrow-moat HubSpot has been on a roll, reporting good results over the last several quarters, and the third quarter was no exception. The company delivered revenue and profitability that appreciably bested our expectations, while fourth-quarter guidance was generally in line. New solutions with a focus on artificial intelligence are being released at a rapid pace, which we expect to support strong revenue growth over the next several years. After filtering results and guidance through our model, we are raising our fair value estimate to $505 per share, from $480. We see shares as slightly undervalued and continue to view HubSpot as well-positioned in the mid-market for marketing and sales automation software, with an expanding and powerful portfolio and a robust growth profile coupled with solid execution.