Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Wolfe Research maintained its Outperform rating and $655.00 price target on HubSpot Inc (NYSE:HUBS), a company with a market capitalization of nearly $26 billion, following the company’s quarterly results that addressed concerns about AI’s impact on search engine optimization. According to InvestingPro data, the stock currently trades with a beta of 1.66, indicating higher volatility than the broader market.
HubSpot reported revenue of $761 million, representing 19% growth year-over-year (18% constant currency), exceeding expectations by 2.1% in constant currency terms. Operating income reached $129 million with a 17% margin, surpassing forecasts by $5 million. InvestingPro data reveals the company maintains impressive gross profit margins of 84.83%, though it’s worth noting the company is not yet profitable on a trailing twelve-month basis.
The company raised its guidance by twice the amount of its revenue beat, marking its strongest guidance increase in 14 quarters. Billings grew 20% in constant currency to $814 million, with approximately 2 percentage points of benefit from longer-term upmarket deals.
HubSpot directly addressed concerns about AI disrupting search engine optimization, noting it had diversified its traffic sources with only about 10% now coming from blog content. The company reported 4,000 customers using its Customer Agent tool and 20,000 utilizing its ChatGPT connector, which requires a HubSpot subscription. For deeper insights into HubSpot’s AI strategy and financial health, InvestingPro subscribers can access comprehensive analysis and over 10 additional ProTips about the company’s performance and outlook.
Net revenue retention ticked up to 103%, while customer additions reached 9,800, hitting the upper end of the company’s expected range. Average subscription revenue per customer remained flat year-over-year at $11,000, its best performance in five quarters, with management expecting continued improvement in the second half of the year. With the stock trading near $493, between its 52-week range of $454-$881, analysts maintain a consensus bullish outlook, setting price targets ranging from $605 to $910.
In other recent news, HubSpot Inc. reported impressive financial results for the second quarter of 2025, surpassing earnings and revenue forecasts. The company posted an earnings per share (EPS) of $2.23, which exceeded the projected $2.12, representing a 5.19% positive surprise. Revenue also surpassed expectations, reaching $760.9 million compared to the anticipated $739.35 million, marking a 2.91% surprise. In light of these results, Piper Sandler upgraded HubSpot’s stock rating from Neutral to Overweight. The firm also raised its price target for the company to $675.00 from $645.00. This upgrade comes amid signs of growth recovery, despite HubSpot’s shares having previously declined over 40% from February highs. These developments indicate a positive shift in investor sentiment toward the company.
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