Sales and marketing software maker HubSpot (NYSE:HUBS) will be reporting results tomorrow after the bell. Here’s what you need to know.
HubSpot beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $703.2 million, up 20.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly. It added 9,811 customers to reach a total of 247,939.
Is HubSpot a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting HubSpot’s revenue to grow 13.4% year on year to $699.9 million, slowing from the 23.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at HubSpot’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 2.1%, and Zeta reported revenues up 35.6%, topping estimates by 4.1%. Freshworks traded up 2.9% following the results while Zeta’s stock price was unchanged.
Read our full analysis of Freshworks’s results here and Zeta’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 17% on average over the last month. HubSpot is up 31.8% during the same time and is heading into earnings with an average analyst price target of $750.28 (compared to the current share price of $642).
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