Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Piper Sandler upgraded HubSpot Inc (NYSE:HUBS) from Neutral to Overweight on Thursday, while raising its price target to $675.00 from $645.00. The software company, currently valued at nearly $26 billion, is trading slightly below its InvestingPro Fair Value, suggesting potential upside alignment with the upgraded price target.
The upgrade follows HubSpot’s second-quarter performance that exceeded expectations with a $22 million revenue beat, coming amid a challenging period that saw the company’s shares decline over 40% from February highs due to negative investor sentiment toward product-led growth SaaS models. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 85% and has achieved 19% year-over-year revenue growth, despite recent market challenges.
Piper Sandler highlighted several positive indicators beneath the headline results, including accelerated growth in the Americas region by 1 percentage point to 18%, representing 60% of the company’s sales, and improvement in contracted backlog for the second consecutive quarter.
The firm also noted HubSpot’s net revenue retention improved by 1 percentage point, while multi-product adoption (3+ products) increased by 4 percentage points to 42% of annual recurring revenue.
HubSpot raised its operating margin guidance for the second half of 2025 to 21%, with Piper Sandler citing a "potential 2026 growth+margin recovery and favorable risk-reward after the sell-off" as key factors in its upgrade decision ahead of HubSpot’s analyst day scheduled for September 3.
In other recent news, HubSpot Inc. reported strong financial results for the second quarter of 2025, exceeding both earnings and revenue expectations. The company announced an earnings per share of $2.23, surpassing the projected $2.12, which represents a 5.19% positive surprise. Additionally, HubSpot’s revenue reached $760.9 million, outperforming the anticipated $739.35 million, marking a 2.91% surprise. These results highlight HubSpot’s ability to deliver beyond market projections. Such performance is likely to draw attention from investors and analysts alike. The financial community often closely monitors earnings and revenue figures as key indicators of a company’s health. HubSpot’s recent performance may influence future analyst ratings and investor sentiment.
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