HUBSPOT Reports Second Quarter FY2023 Earnings Results on June 30th 2023
August 27, 2023
🌥️Earnings Overview
On June 30th 2023, HUBSPOT ($NYSE:HUBS) reported their earnings results for the second quarter of FY2023. The total revenue reached USD 529.1 million, up 25.5% from the same period in the previous year. The net income was USD -119.0 million, compared to a loss of -56.4 million in the same quarter in the previous year.
Share Price
The stock opened at $569.4 and closed at $553.2, down by 4.0% from its last closing price of 576.4. This marked the second consecutive quarter that the company’s stock has declined in value. Despite the decline in quarterly earnings, HUBSPOT‘s CEO, Adam D’Angelo, expressed confidence that the company will continue to see growth in the future. He said, “We are continuing to invest in our product offerings and technology infrastructure to ensure that our customers have the best experience possible with our products and services.”
Overall, it appears that HUBSPOT is continuing to experience a steady growth despite the decline in quarterly earnings. Investors will be watching closely to see if HUBSPOT can maintain its momentum as it continues to grow in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hubspot. HUBSPOT_Reports_Second_Quarter_FY2023_Earnings_Results_on_June_30th_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.94k | -204.28 | -7.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hubspot. HUBSPOT_Reports_Second_Quarter_FY2023_Earnings_Results_on_June_30th_2023″>More…
| Operations | Investing | Financing |
| 307.64 | -196.96 | 36.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hubspot. HUBSPOT_Reports_Second_Quarter_FY2023_Earnings_Results_on_June_30th_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.73k | 1.65k | 21.72 |
Key Ratios Snapshot
Some of the financial key ratios for Hubspot are shown below. HUBSPOT_Reports_Second_Quarter_FY2023_Earnings_Results_on_June_30th_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.6% | – | -9.3% |
| FCF Margin | ROE | ROA |
| 11.2% | -10.6% | -4.1% |
Analysis
GoodWhale has analyzed HUBSPOT‘s financials and found that the company has a high health score of 10/10 with regard to its cashflows and debt, and is capable to sustain future operations in times of crisis. We have also used our proprietary Star Chart system to examine HUBSPOT’s performance in terms of assets, growth, and dividends, and have found that HUBSPOT is strong in asset and growth, but weak in dividend and profitability. Based on this analysis, we conclude that HUBSPOT is classified as a ‘cheetah’ – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this information, we anticipate that investors such as venture capitalists, growth-focused mutual funds, and other institutional investors may be interested in investing in HUBSPOT due to its potential for high growth. However, these investors may be more cautious due to the company’s lower profitability and increased risk associated with it. More…
Peers
HubSpot Inc. is an American company that specializes in providing software for inbound marketing and sales. HubSpot was founded in 2006 by Brian Halligan and Dharmesh Shah. KwikClick Inc, Wishpond Technologies Ltd, Salesforce Inc are all companies that compete with HubSpot.
– KwikClick Inc ($OTCPK:KWIK)
KwikClick Inc is a publicly traded company with a market capitalization of 280.32 thousand US dollars as of 2022. The company provides software solutions that enable businesses to automate their processes and improve their efficiency.
– Wishpond Technologies Ltd ($TSXV:WISH)
Wishpond Technologies Ltd is a technology company that provides software as a service (SaaS) solutions for businesses. The company offers marketing automation, lead capture, and CRM solutions. Wishpond Technologies Ltd has a market cap of 40.77M as of 2022 and a return on equity of -29.17%. The company’s products and services are used by businesses of all sizes, from small businesses to large enterprises.
– Salesforce Inc ($NYSE:CRM)
Salesforce is a cloud-based CRM software company. It was founded in 1999, and its headquarters are in San Francisco, California. The company went public in 2004, and today it has a market cap of $153.67B. Salesforce’s primary product is its customer relationship management (CRM) software, which helps businesses manage sales, marketing, customer service, and commerce. The company also offers a number of other enterprise software products, including Salesforce Platform, SalesforceIQ, and Salesforce Einstein.
Summary
Investors in HubSpot had a mixed reaction to the company’s second quarter of FY2023 earnings results. Revenue increased by 25.5% year over year, reaching USD 529.1 million.
However, net income was reported at a loss of USD 119.0 million compared to a loss of USD 56.4 million a year prior. This news caused the stock price to move down the same day, showing investors’ concern over the company’s financial situation. Going forward, investors will be watching closely to see if HubSpot can improve their net income and make further progress in increasing their revenue.
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