HubSpot Reports Q1 2025 Results
HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the first quarter ended March 31, 2025. Financial Highlights: Revenue Total revenue w...
CAMBRIDGE, Mass.: HubSpot, Inc. (NYSE: HUBS), the customer platform for scaling companies, today announced financial results for the first quarter ended March 31, 2025.
Financial Highlights:
Revenue
- Total revenue was $714.1 million, up 16% on an as-reported basis and 18% in constant currency compared to Q1'24.
- Subscription revenue was $698.7 million, up 16% on an as-reported basis compared to Q1'24.
- Professional services and other revenue was $15.4 million, up 13% on an as-reported basis compared to Q1'24.
Operating Income (Loss)
- GAAP operating margin was (3.8%), compared to (3.8%) in Q1'24.
- Non-GAAP operating margin was 14.0%, compared to 15.0% in Q1'24.
- GAAP operating loss was ($27.5) million, compared to ($23.2) million in Q1'24.
- Non-GAAP operating income was $100.3 million, compared to $92.6 million in Q1'24.
Net Income (Loss)
- GAAP net loss was ($21.8) million, or ($0.42) per basic and diluted share, compared to net income of $5.9 million, or $0.12 per basic and diluted share in Q1'24.
- Non-GAAP net income was $95.9 million, or $1.84 per basic and $1.78 per diluted share, compared to $89.1 million, or $1.76 per basic and $1.68 per diluted share in Q1'24.
- Weighted average basic and diluted shares outstanding for GAAP net income (loss) per share was 52.2 million, compared to 50.7 million basic and 51.5 million diluted shares in Q1'24.
- Weighted average basic and diluted shares outstanding for non-GAAP net income per share was 52.2 million and 54.0 million respectively, compared to 50.7 million and 53.1 million, respectively in Q1'24.
Balance Sheet and Cash Flow
- The company’s cash, cash equivalents, and short-term and long-term investments balance was $2.2 billion as of March 31, 2025.
- During the first quarter, the company generated $161.6 million of cash from operating cash flow, compared to $127.1 million during Q1'24.
- During the first quarter, the company generated $166.1 million of cash from non-GAAP operating cash flow and $122.3 million of non-GAAP free cash flow, compared to $131.3 million of cash from non-GAAP operating cash flow and $103.8 million of non-GAAP free cash flow during Q1'24.
Additional Recent Business Highlights
- Grew Customers to 258,258 at March 31, 2025, up 19% from March 31, 2024.
- Average Subscription Revenue Per Customer was $11,038 during the first quarter of 2025, down 4% on an as-reported basis compared to the first quarter of 2024.
- Calculated billings were $766.8 million in the first quarter of 2025, up 20% on an as-reported basis and 18% in constant currency compared to Q1'24.
“We had a solid start to 2025, with continued revenue growth and customer expansion,” said Yamini Rangan, Chief Executive Officer at HubSpot. “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. As more companies consolidate their tech stacks, HubSpot is becoming the clear choice for businesses that want to drive AI innovation while reducing total cost of ownership. With our rapid pace of innovation, strong execution, and clear focus on value, we’re well-positioned to drive durable, long-term growth.”
Share Repurchase Program
On May 6, 2025, the company’s Board of Directors authorized a share repurchase program for the repurchase of shares of the company’s common stock, in an aggregate amount of up to $500.0 million (the “2025 Share Repurchase Program”) over a period of up to 12 months. Repurchases under this program will be made in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, and in compliance with applicable securities laws and other requirements. The timing, manner, price, and amount of the 2025 Share Repurchase Program will be subject to the discretion of the Company’s management. The 2025 Share Repurchase Program does not obligate the Company to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice.
Business Outlook
Based on information available as of May 8, 2025, HubSpot is issuing guidance for the second quarter and full year of 2025 as indicated below.
Second Quarter 2025:
- Total revenue is expected to be in the range of $738.0 million to $740.0 million, up 16% year over year in both on an as-reported basis and in constant currency.
- Non-GAAP operating income is expected to be in the range of $124.0 million to $125.0 million, representing a 17% operating profit margin.
- Non-GAAP net income per common share is expected to be in the range of $2.10 to $2.12. This assumes approximately 53.2 million weighted average diluted shares outstanding.
Full Year 2025:
- Total revenue is expected to be in the range of $3.036 billion to $3.044 billion, up 16% year over year in both on an as-reported basis and in constant currency.
- Non-GAAP operating income is expected to be in the range of $558.0 million to $562.0 million, representing an 18% operating profit margin.
- Non-GAAP net income per common share is expected to be in the range of $9.29 to $9.37. This assumes approximately 53.3 million weighted average diluted shares outstanding.
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 Thursday, May 8, 2025 at 4:30 p.m. Eastern Time (ET) to discuss the company’s first quarter 2025 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 second fiscal quarter of and full year 2025 and our long-term financial framework; statements regarding our share repurchase program; 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) | ||||||||
|
| March 31, |
| December 31, | ||||
|
| 2025 |
| 2024 | ||||
Assets |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 625,029 |
|
| $ | 512,667 |
|
Short-term investments |
|
| 1,417,785 |
|
|
| 1,556,828 |
|
Accounts receivable |
|
| 294,509 |
|
|
| 334,829 |
|
Deferred commission expense |
|
| 167,962 |
|
|
| 148,693 |
|
Prepaid expenses and other current assets |
|
| 108,588 |
|
|
| 80,586 |
|
Total current assets |
|
| 2,613,873 |
|
|
| 2,633,603 |
|
Long-term investments |
|
| 176,557 |
|
|
| 154,212 |
|
Property and equipment, net |
|
| 123,815 |
|
|
| 114,165 |
|
Capitalized software development costs, net |
|
| 169,517 |
|
|
| 154,484 |
|
Right-of-use assets |
|
| 215,990 |
|
|
| 216,230 |
|
Deferred commission expense, net of current portion |
|
| 174,270 |
|
|
| 160,814 |
|
Other assets |
|
| 126,200 |
|
|
| 115,254 |
|
Intangible assets, net |
|
| 41,054 |
|
|
| 37,563 |
|
Goodwill |
|
| 255,040 |
|
|
| 209,508 |
|
Total assets |
| $ | 3,896,316 |
|
| $ | 3,795,833 |
|
Liabilities and stockholders’ equity |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 22,234 |
|
| $ | 3,649 |
|
Accrued compensation costs |
|
| 86,354 |
|
|
| 67,442 |
|
Accrued commissions |
|
| 97,064 |
|
|
| 102,043 |
|
Accrued expenses and other current liabilities |
|
| 129,571 |
|
|
| 125,135 |
|
Operating lease liabilities |
|
| 36,696 |
|
|
| 32,693 |
|
Convertible senior notes |
|
| 368,883 |
|
|
| 458,184 |
|
Deferred revenue |
|
| 836,296 |
|
|
| 784,253 |
|
Total current liabilities |
|
| 1,577,098 |
|
|
| 1,573,399 |
|
Operating lease liabilities, net of current portion |
|
| 249,570 |
|
|
| 254,539 |
|
Deferred revenue, net of current portion |
|
| 4,581 |
|
|
| 3,969 |
|
Other long-term liabilities |
|
| 60,523 |
|
|
| 55,640 |
|
Total liabilities |
|
| 1,891,772 |
|
|
| 1,887,547 |
|
Stockholders’ equity: |
|
|
|
| ||||
Common stock |
|
| 52 |
|
|
| 52 |
|
Additional paid-in capital |
|
| 2,828,754 |
|
|
| 2,713,697 |
|
Accumulated other comprehensive (loss) income |
|
| (2,660 | ) |
|
| (5,654 | ) |
Accumulated deficit |
|
| (821,602 | ) |
|
| (799,809 | ) |
Total stockholders’ equity |
|
| 2,004,544 |
|
|
| 1,908,286 |
|
Total liabilities and stockholders’ equity |
| $ | 3,896,316 |
|
| $ | 3,795,833 |
|
Consolidated Statements of Operations | |||||||
(in thousands, except per share data) | |||||||
| Three Months Ended March 31, | ||||||
| 2025 |
| 2024 | ||||
Revenues: |
|
|
| ||||
Subscription | $ | 698,728 |
|
| $ | 603,798 |
|
Professional services and other |
| 15,409 |
|
|
| 13,616 |
|
Total revenue |
| 714,137 |
|
|
| 617,414 |
|
Cost of revenues: |
|
|
| ||||
Subscription |
| 100,230 |
|
|
| 80,725 |
|
Professional services and other |
| 14,877 |
|
|
| 14,363 |
|
Total cost of revenues |
| 115,107 |
|
|
| 95,088 |
|
Gross profit |
| 599,030 |
|
|
| 522,326 |
|
Operating expenses: |
|
|
| ||||
Research and development |
| 220,100 |
|
|
| 175,637 |
|
Sales and marketing |
| 326,697 |
|
|
|
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