Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Oppenheimer maintained its Outperform rating and $750.00 price target on HubSpot Inc (NYSE:HUBS), currently trading at $560.55 with a market capitalization of $29.6 billion, citing stabilizing demand trends and improving deal quality. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The research firm reported that despite mixed partner feedback throughout the quarter, demand appears intact as pent-up demand has cleared and sales cycles have normalized. Oppenheimer noted that deal quality continues to improve for the marketing software company, which boasts impressive gross profit margins of 84.8% and has achieved 19.2% year-over-year revenue growth.
Customers are engaging with HubSpot’s new AI credits, though the firm expects most monthly recurring revenue growth to come from cross-selling and expansions rather than purchases of credit packs. Partners anticipate modest incremental pricing benefits above the 3-5% cap as customers renew in the second year of seat-based pricing.
Oppenheimer acknowledged some competitive pressure, with lower quality deals going to competitors offering deeper discounts. The firm also addressed concerns about search engine optimization (SEO) and AI search disruption.
While SEO and AI search disruption are unlikely to see quick fixes, Oppenheimer’s research indicates partners see potential long-term benefits to HubSpot from these market changes. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, HubSpot reported its first-quarter results for 2025, showing a total revenue growth of 16% on a reported basis and 18% on a constant currency basis, surpassing consensus expectations. The company’s non-GAAP operating margin was approximately 14%, aligning with expectations but showing a slight decline compared to the previous year. In a strategic move, HubSpot launched a deep research connector with ChatGPT, enhancing customer data analysis capabilities for over 250,000 businesses using its CRM. This integration aims to streamline workflows for marketing, sales, customer success, and support teams.
Additionally, HubSpot announced changes to its corporate governance structure, including the declassification of its Board of Directors and the elimination of supermajority voting provisions. In the realm of analyst ratings, Cantor Fitzgerald initiated coverage on HubSpot with an Overweight rating, citing its strategic positioning within the CRM industry. William Blair maintained an Outperform rating, emphasizing HubSpot’s strong platform and growth potential. Furthermore, Citi raised its price target for HubSpot to $759, maintaining a Buy rating due to the company’s sustainable growth profile and favorable revenue guidance. These developments highlight HubSpot’s strategic initiatives and analyst confidence in its future growth potential.
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