HubSpot Q3 revenue beats estimates driven by subscription growth

HubSpot

Wed 21:19

Overview
Customer platform software firm's Q3 revenue rose 17%, beating analyst expectations
Adjusted EBIT for Q3 beat analyst expectations
Company repurchased $237.2 mln of its common stock during the quarter

Outlook
HubSpot expects Q4 revenue between $945 mln and $947 mln, up 12% year over year
Company sees Q4 non-GAAP net income per share of $3.85 to $3.87
HubSpot forecasts full-year 2026 revenue of $3.685 bln to $3.687 bln, up 18% year over year

Result Drivers
SUBSCRIPTION REVENUE - Subscription revenue grew 18% in Q3, supporting overall revenue growth
CUSTOMER BASE EXPANSION - Number of customers increased 12% year-over-year to 311,704
HIGHER REVENUE PER CUSTOMER - Average subscription revenue per customer rose 4% in Q3

Company press release: ID:nBwfQcPSa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$947.57 mln
$924.78 mln (27 Analysts)
Q3 Adjusted EBIT
Beat
$214.20 mln
$187.86 mln (27 Analysts)
Q3 Adjusted EBIT Margin
 
22.60%
 
Q3 Gross Profit
 
$782.89 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 24 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for HubSpot, Inc. is $259.22, about 14.6% above its November 3 closing price of $226.17
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

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Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)