The average of price targets set by Wall Street analysts indicates a potential upside of 25.4% in HubSpot (HUBS). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
I rate HubSpot a buy, expecting strong growth driven by seat-based pricing and AI monetization, with a clear path to 20% upside. HubSpot's all-in-one CRM platform is well-positioned to capture SMB demand for tech stack consolidation and workflow automation in a large, underpenetrated market. AI integration is driving real productivity gains and user adoption, and the upcoming credit-based AI pricing model will further support monetization.
HubSpot stock slides after Alphabet drops buyout plan, but rising earnings estimates and AI-driven growth may help HUBS regain traction.
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HUBS reports revenue growth year over year, backed by solid demand in multiple verticals.
The headline numbers for HubSpot (HUBS) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
HubSpot, Inc. (NYSE:HUBS ) Q1 2025 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Ryan Burkart - Senior Director, Investor Relations Yamini Rangan - Chief Executive Officer Kate Bueker - Chief Financial Officer Dharmesh Shah - Co-Founder & Chief Technology Officer Conference Call Participants Mark Murphy - JPMorgan Samad Samana - Jefferies Arjun Bhatia - William Blair Gabriela Borges - Goldman Sachs Alex Zukin - Wolfe Research Rishi Jaluria - RBC Capital Markets Parker Lane - Stifel Elizabeth Porter - Morgan Stanley Brad Sills - Bank of America Merrill Lynch Joshua Reilly - Needham & Company Keith Bachman - BMO Capital Markets Ken Wong - Oppenheimer Jackson Ader - KeyBanc Capital Markets Kirk Materne - Evercore ISI Operator Good afternoon and welcome to the HubSpot's Q1 2025 Earnings Call. My name is Gigi and I'll be your operator for today.
HubSpot (HUBS) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $1.68 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for HubSpot (HUBS), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
HubSpot (HUBS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Recent market turmoil has made high-quality growth stocks like HubSpot more affordable, presenting a buying opportunity as it has lost ~35% of its peak value. HubSpot's current ~9x EV/FY25 revenue makes it attractive for a near-Rule of 40 software company. Despite potential tariff-related headwinds, HubSpot's conservative guidance and currency tailwinds provide a buffer, making it a good buy at current levels.
HubSpot's stock has declined since mid-February, despite continued revenue growth and customer retention. The CRM market is expected to grow significantly, driven by AI and automation, presenting positive growth dynamics for HubSpot. Financially, HubSpot has shown improved operating leverage and positive earnings, but high stock-based compensation and a premium market valuation raise concerns.