HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the fourth quarter and full year ended December 31, 2024. Financial Highlights: Revenue F...
CAMBRIDGE, Mass.: HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the fourth quarter and full year ended December 31, 2024.
Financial Highlights:
Revenue
Fourth Quarter 2024:
Full Year 2024:
Operating Income (Loss)
Fourth Quarter 2024:
Full Year 2024:
Net Income (Loss)
Fourth Quarter 2024:
Full Year 2024:
Balance Sheet and Cash Flow
Additional Recent Business Highlights
“We had a solid finish to 2024, highlighting our leadership as a platform company”, said Yamini Rangan, Chief Executive Officer at HubSpot. “2024 was a transformative year for HubSpot as we reimagined our product, our platform, and company with AI. I’m excited by the progress we’ve made in embedding AI across our hubs and the value it’s driving for customers. Heading into 2025, we're focused on cementing our position as the leading AI-first customer platform for scaling companies. We are entering the year with more clarity on strategy, more alignment on outcomes and more urgency in execution than ever before.”
Business Outlook
Based on information available as of February 12, 2025, HubSpot is issuing guidance for the full year 2025 and first quarter of 2025 as indicated below.
Full Year 2025:
First Quarter 2025:
Use of Non-GAAP Financial Measures
In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website ir.hubspot.com.
Conference Call Information
HubSpot will host a conference call on Wednesday, February 12, 2025 at 4:30 p.m. Eastern Time (ET) to discuss the company’s fourth quarter and full year 2024 financial results and its business outlook. To register for this conference call, please use this dial in registration link or visit HubSpot's Investor Relations website at ir.hubspot.com. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Participants who wish to register for the conference call webcast please use this link.
An archived webcast of this conference call will also be available on HubSpot's Investor Relations website at ir.hubspot.com.
The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
About HubSpot
HubSpot is the customer platform that helps businesses connect and grow better. HubSpot delivers seamless connection for customer-facing teams with a unified platform that includes AI-powered engagement hubs, a Smart CRM, and a connected ecosystem with over 1,700 App Marketplace integrations, a community network, and educational content. Learn more at www.hubspot.com.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding management’s expectations of future financial and operational performance and operational expenditures, expected growth, foreign currency movement, and business outlook, including our financial guidance for the first fiscal quarter of and full year 2025 and our long-term financial framework; statements regarding our positioning for future growth and market leadership; statements regarding the economic environment; and statements regarding expected market trends, future priorities and related investments, and market opportunities. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks associated with our history of losses; our ability to retain existing customers and add new customers; the continued growth of the market for a customer platform; our ability to develop new products and technologies and differentiate our platform from competing products and technologies, including artificial intelligence and machine learning technologies; our ability to manage our growth effectively over the long-term to maintain our high level of service; our ability to maintain and expand relationships with our solutions partners; the price volatility of our common stock; the impact of geopolitical conflicts, inflation, foreign currency movement, and macroeconomic instability on our business, the broader economy, our workforce and operations, the markets in which we and our partners and customers operate, and our ability to forecast our future financial performance; regulatory and legislative developments on the use of artificial intelligence and machine learning; and other risks set forth under the caption “Risk Factors” in our SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2024 |
|
| 2023(1) |
| ||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 512,667 |
|
| $ | 387,987 |
|
Short-term investments |
|
| 1,556,828 |
|
|
| 1,000,245 |
|
Accounts receivable |
|
| 334,829 |
|
|
| 295,303 |
|
Deferred commission expense |
|
| 148,693 |
|
|
| 99,326 |
|
Prepaid expenses and other current assets |
|
| 80,586 |
|
|
| 88,679 |
|
Total current assets |
|
| 2,633,603 |
|
|
| 1,871,540 |
|
Long-term investments |
|
| 154,212 |
|
|
| 325,703 |
|
Property and equipment, net |
|
| 114,165 |
|
|
| 103,331 |
|
Capitalized software development costs, net |
|
| 154,484 |
|
|
| 106,229 |
|
Right-of-use assets |
|
| 216,230 |
|
|
| 251,071 |
|
Deferred commission expense, net of current portion |
|
| 160,814 |
|
|
| 122,194 |
|
Other assets |
|
| 115,254 |
|
|
| 75,247 |
|
Intangible assets, net |
|
| 37,563 |
|
|
| 42,316 |
|
Goodwill |
|
| 209,508 |
|
|
| 173,761 |
|
Total assets |
| $ | 3,795,833 |
|
| $ | 3,071,392 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
| ||
Accounts payable |
| $ | 3,649 |
|
| $ | 9,106 |
|
Accrued compensation costs |
|
| 67,442 |
|
|
| 53,462 |
|
Accrued commissions |
|
| 102,043 |
|
|
| 78,169 |
|
Accrued expenses and other current liabilities |
|
| 125,135 |
|
|
| 94,074 |
|
Operating lease liabilities |
|
| 32,693 |
|
|
| 35,047 |
|
Convertible senior notes |
|
| 458,184 |
|
| — |
| |
Deferred revenue |
|
| 784,253 |
|
|
| 672,150 |
|
Total current liabilities |
|
| 1,573,399 |
|
|
| 942,008 |
|
Operating lease liabilities, net of current portion |
|
| 254,539 |
|
|
| 296,561 |
|
Deferred revenue, net of current portion |
|
| 3,969 |
|
|
| 5,810 |
|
Other long-term liabilities |
|
| 55,640 |
|
|
| 36,459 |
|
Convertible senior notes, net of current portion |
| — |
|
|
| 456,206 |
| |
Total liabilities |
|
| 1,887,547 |
|
|
| 1,737,044 |
|
Stockholders’ equity: |
|
|
|
|
|
| ||
Common stock |
|
| 52 |
|
|
| 50 |
|
Additional paid-in capital |
|
| 2,713,697 |
|
|
| 2,136,908 |
|
Accumulated other comprehensive (loss) income |
|
| (5,654 | ) |
|
| 1,827 |
|
Accumulated deficit |
|
| (799,809 | ) |
|
| (804,437 | ) |
Total stockholders’ equity |
|
| 1,908,286 |
|
|
| 1,334,348 |
|
Total liabilities and stockholders’ equity |
| $ | 3,795,833 |
|
| $ | 3,071,392 |
|
(1) In the three months ended March 31, 2024, we discovered an immaterial error in our calculation of Cost of Revenues—Subscription related to how we calculate contractual credits in one of our third-party vendor agreements. As a result, we have revised the Consolidated Statement of Operations by reducing Cost of Revenues- Subscription by $1.2 million for the three months ended December 31, 2023 and $7.1 million for the year ended December 31, 2023 to reflect the revised impact of the credits on that period. We have also revised the balance sheet as of December 31, 2023 to reflect the cumulative impact of the error on prior periods, resulting in a decrease to accrued expenses and other current liabilities and a decrease to accumulated deficit totaling $14.2 million. Lastly, we have updated certain line items within the operating section of the statement of cash flows for the three months and year ended December 31, 2023 but note no net impact to cash flows provided by operating activities. Refer to our Form 10-K for additional information.
Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, |
|
| For the Year Ended December 31, |
| ||||||||||
| 2024 |
|
| 2023(1) |
|
| 2024 |
|
| 2023(1) |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||
Subscription | $ | 687,316 |
|
| $ | 570,225 |
|
| $ | 2,569,546 |
|
| $ | 2,123,479 |
|
Professional services and other |
| 15,856 |
|
|
| 11,689 |
|
|
| 57,997 |
|
|
| 46,751 |
|
Total revenue |
| 703,172 |
|
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related newsLast NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readPersefoni Pro Wins Innovation of the Year at the 2025 CleanTech Breakthrough…Persefoni AI, Inc., a leading sustainability management SaaS and AI platform, has won ‘Overall Climate Technology Innovation of the Year’ at the 2025… U.S.-Based Haddy Launches the World’s Largest 3D Printing FactoryHaddy, the pioneering company redefining large-scale digital manufacturing, today officially opens the doors to its new microfactory – which becomes the… YuJa Deepens Vendor Partnership With Allied States CooperativeYuJa, Inc. announces the renewal and expansion of its vendor partnership with ESC19 Purchasing (Allied States Cooperative), a national governmental purchasing… New Poll: TechNet and Echelon Insights Survey Reveals Americans See Tech…TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, today released the results of a survey in partnership with… G11 Media Networks |