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CAMBRIDGE - HubSpot, Inc. (NYSE:HUBS) shares surged 6.5% after the customer platform provider reported second-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by strong customer growth and AI-powered innovations.
The company reported second-quarter revenue of $760.9 million, up 19% YoY and significantly above the analyst consensus of $739.35 million. Adjusted earnings per share came in at $2.23, beating the $2.12 estimate. HubSpot’s customer base grew 18% YoY to 267,982, while subscription revenue, which accounts for the bulk of total revenue, increased 19% to $744.5 million.
The stock’s strong upward movement reflects investor enthusiasm for both the quarterly performance and HubSpot’s raised guidance. For the third quarter, the company expects revenue between $785 million and $787 million, above the $775.6 million consensus, and adjusted EPS of $2.56-$2.58, higher than the $2.54 analyst estimate. Full-year guidance was also raised, with revenue now projected at $3.08-3.088 billion versus the previous consensus of $3.043 billion.
"Q2 was another solid quarter of continued revenue growth and customer expansion," said Yamini Rangan, Chief Executive Officer at HubSpot. "Our strategy is to be the leading AI-first customer platform for scaling companies, and I’m excited by the progress we’re making."
HubSpot’s non-GAAP operating income was $129.1 million in the quarter, representing a 17% operating margin, slightly below the 17.2% margin in the same period last year. The company generated $167.7 million in non-GAAP operating cash flow, a significant improvement from $121.7 million in Q2 2024.
Calculated billings, an important indicator of future revenue, grew 26% YoY to $814.3 million, suggesting continued momentum. The company also repurchased $125 million of its common stock during the quarter, with $375 million remaining available for future repurchases.
HubSpot’s focus on AI-powered features appears to be resonating with customers, as the company highlighted success with its Customer Agent and Prospecting Agent tools that are helping go-to-market teams work more efficiently.
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