HubSpot Inc (NYSE:HUBS) stock is trading lower after second-quarter financial results were reported Wednesday after market close.
• HubSpot stock is feeling bearish pressure. What’s pressuring HUBS stock?
Here are the key highlights.
HubSpot Q2 Earnings
HubSpot reported second-quarter revenue of $911.7 million, up 20% year-over-year. The revenue total beat a Street consensus estimate of $898.3 million, according to data from Benzinga Pro.
The company reported subscription revenue of $894 million for the quarter, up 20% year-over-year. Professional services and other revenue was $17.7 million in the quarter, up 8% year-over-year.
HubSpot reported adjusted earnings per share of $3.26, beating a Street consensus estimate of $3.02.
The company grew customers to 306,446 in the quarter, up 14% year-over-year. The average subscription revenue per customer was $11,800 in the quarter, up 4% on an as-reported basis.
The company ended the quarter with cash and cash equivalents of $1.4 billion.
In the second quarter, the company bought back $531.9 million in shares. On Monday, the company authorized an additional share repurchase program for up to $1 billion in shares over the next 24 months.
"In Q2, we made deliberate choices to accelerate our AI transformation," HubSpot CEO Yamini Rangan said. "Scaling companies want real outcomes and predictable pricing when adopting AI, and we are evolving our product, pricing and go-to-market to meet those needs."
Rangan said the AI shift unlocks a larger opportunity for the company.
"I’m confident these choices position us to drive long-term, compounding growth."
What’s Next for HubSpot
While the company posted a double beat and strong year-over-year growth in several areas, guidance from the company is weighing on the stock in after-hours trading Wednesday.
The company expects third-quarter revenue to be in a range of $924 million to $925 million, up 14% year-over-year.
Adjusted earnings per share for the third quarter are expected to be in a range of $3.25 to $3.27.
The Street expects third quarter earnings per share of $3.45 and revenue of $942.3 million, both higher than the guidance.
For the full fiscal year, HubSpot expects revenue in a range of $3.678 billion to $3.686 billion and adjusted earnings per share in a range of $13.23 to $13.31.
This new full-year guidance is higher for adjusted earnings per share than previously forecast, while revenue is lowered from a prior range of $3.70 billion to $3.708 billion.
The Street sees full-year adjusted earnings per share of $13.10 and revenue of $3.707 billion.
HubSpot Stock Price Action
HubSpot stock is down 19.2% to $202.16 in after-hours trading Wednesday on the new guidance.
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