CAMBRIDGE, Mass. - HubSpot, Inc. (NYSE: NYSE:HUBS) saw its shares soar 12.5% after the customer platform provider reported third-quarter results and guidance that exceeded analyst expectations.
The company posted adjusted earnings per share of $2.18, beating the consensus estimate of $1.91 by $0.27. Revenue came in at $669.7 million, surpassing analysts' projections of $646.95 million and representing a 20% YoY increase.
HubSpot's outlook for the fourth quarter also impressed investors. The company forecasts adjusted EPS of $2.18-$2.20, compared to the $2.18 consensus. Revenue is expected to be between $672 million and $674 million, above the $669.5 million analysts were anticipating.
"Q3 was another strong quarter of revenue growth, operating profit growth and customer growth," said Yamini Rangan, Chief Executive Officer at HubSpot. "We hosted our annual INBOUND conference which was a huge success, showcasing over 200 new innovations, including the standout launches of Breeze and Breeze Intelligence."
The company reported 238,128 customers at the end of Q3, up 23% from the same period last year. However, average subscription revenue per customer declined 2% YoY to $11,235.
HubSpot's non-GAAP operating margin expanded to 18.7% from 16.5% in Q3 2023, reflecting improved profitability alongside strong top-line growth.
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