Sales and marketing software maker HubSpot (NYSE:HUBS) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
HubSpot beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $669.7 million, up 20.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates. It added 10,074 customers to reach a total of 238,128.
Is HubSpot a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting HubSpot’s revenue to grow 15.7% year on year to $673.5 million, slowing from the 23.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HubSpot has missed Wall Street’s revenue estimates three times over the last two years.
Looking at HubSpot’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Shopify delivered year-on-year revenue growth of 31.2%, beating analysts’ expectations by 3%, and LiveRamp reported revenues up 12.4%, topping estimates by 1.7%. LiveRamp traded up 2.7% following the results.
Read our full analysis of Shopify’s results here and LiveRamp’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 11.4% on average over the last month. HubSpot is up 15.6% during the same time and is heading into earnings with an average analyst price target of $769.87 (compared to the current share price of $802).
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