HubSpot (HUBS) News & Sentiment

HubSpot is a top-notch CRM for small and medium-sized businesses, providing excellent AI features for personalization, but it doesn't fit my investment criteria, so I consider it a hold. Financially, HubSpot does better than Salesforce in terms of gross margins and free cash flow, which supports its higher valuation due to better capital management and revenue growth. However, despite its promising growth, HubSpot competes with companies like Klaviyo and is affected by broader economic conditions impacting SMBs, limiting its potential for growth.

HubSpot Inc's shares (HUBS) rose in early trading on Thursday following the release of positive fourth-quarter results.

HubSpot's high valuation and anticipated slowdown in growth make it a risky investment, even with good results in Q4 and revenue increases from AI. The company's forecast for FY 2025 suggests a growth rate of around 14%, which does not justify its current valuation of about 14 times earnings. Other software companies, such as Salesforce and Workday, are growing at a similar low-teens rate but have much lower valuation multiples.

HubSpot, Inc. (NYSE:HUBS) will hold its Q4 2024 Earnings Conference Call on February 12, 2025, at 4:30 PM ET. The call will feature company representatives including Ryan Burkart, Yamini Rangan, Kate Bueker, and Dharmesh Shah. Various analysts from firms like Jefferies, JP Morgan, and Goldman Sachs will also participate in the call.

The main figures for HubSpot (HUBS) provide an overview of the company's performance for the quarter that ended in December 2024. However, it could be useful to look at some of its important metrics in relation to Wall Street predictions and the results from the same period last year.

Here is our first impression of HubSpot's (HUBS 0.13%) financial report for the fourth quarter.

In addition to Wall Street's predictions for HubSpot's (HUBS) earnings, take a look at forecasts for some important metrics to better understand how the company performed in the quarter that ended in December 2024.

HubSpot (HUBS) lacks the necessary mix of two important factors that could lead to a strong earnings report in the near future. Be ready for the main expectations.

HubSpot (HUBS) could see an increase in value due to rising confidence in its earnings potential, as indicated by its upgrade to a Zacks Rank #2 (Buy).