HubSpot Beats Estimates, Raises Guidance, Shares Sink: The Details

HubSpot Inc HUBS stock is trading lower after reporting first-quarter financial results after market close Thursday.

Here are the details.

What Happened: HubSpot reported first-quarter revenue of $714.1 million, up 16% year-over-year. The revenue total beat a Street consensus estimate of $700.4 million.

The company's subscription revenue of $698.7 million was up 16% year-over-year and professional services and other revenue of $15.4 million was up 13% year-over-year.

HubSpot reported first-quarter earnings per share of $1.78, beating a Street consensus estimate of $1.76.

In the quarter, HubSpot grew its customers to 258,258, up 19% year-over-year. The average subscription revenue per customer was $11,038, down 4% year-over-year.

The company said calculated billings were $766.8 million in the first quarter, up 20% year-over-year.

"We had a solid start to 2025 with continued revenue growth and customer expansion," HubSpot CEO Yamini Rangan said. "We saw further proof that our AI-first strategy is working — customers are seeing results, and Customer Agent is a great example of the value we're delivering."

HubSpot announced a new $500 million share repurchase program for the next 12 months.

The company ended the quarter with $2.2 billion in cash and cash equivalents.

What's Next: HubSpot is guiding for second-quarter revenue to be in a range of $738.0 million to $740.0 million, up 16% year-over-year.

The company guides for second-quarter earnings per share of $2.10 to $2.12.

Analysts expect second-quarter revenue of $725.6 million and earnings per share of $2.13, according to data from Benzinga Pro.

The company raised its full-year revenue from a range of $2.9 billion to $3.0 billion to a new range of $3.036 billion to $3.044 billion.

The company also raised its full-year earnings per share guidance from a previous range of $9.11 to $9.19 to a new range of $9.29 to $9.37.

Analysts expect the company to have full-year revenue of $2.99 billion and full-year earnings per share of $9.21.

"With our rapid pace of innovation, strong execution, and clear focus on value, we're well-positioned to drive durable, long-term growth," Rangan said.

HUBS Price Action: HubSpot stock is down 7.63% to $610 in after-hours trading Thursday versus a 52-week trading range of $434.84 to $881.13.

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