HubSpot, Inc (HUBS - Free Report) reported relatively healthy second-quarter 2022 results, with both the bottom line and the top line surpassing the respective Zacks Consensus Estimate, driven by strong product innovation and a deep understanding of its customers’ requirements. The company’s strategic priority is to deliver a world-class front-office platform by investing in anchor hubs and innovating new emerging hubs. The company continues to expand its app ecosystem, with its integration catalog growing nearly 40% year over year. HubSpot also remains focused on becoming a leading CRM platform provider in the near future. The solid quarterly performance was reflected in share price appreciation post earnings release.
Quarter Details
GAAP net loss in the quarter was $56.4 million or a loss of $1.18 per share compared with a net loss of $24.6 million or a loss of 53 cents per share in the prior-year quarter.
Non-GAAP net income in the second quarter was $22.4 million or 44 cents per share compared with $21.6 million or 43 cents per share in the prior-year quarter. It beat the Zacks Consensus Estimate by a penny.
Revenues during the reported quarter were $421.8 million compared with $310.8 million in the prior-year quarter, reflecting growth of 35.7% and beating the Zacks Consensus Estimate of $410 million. The strengthening of the U.S. dollar throughout the second quarter contributed majorly to the earnings growth. Growing customer base, which surged 25% year over year to 150,865, also contributed to the results.
Subscription revenues in the quarter were $421.4 million compared with $300.4 million in the year-ago quarter, reflecting growth of 40.3%. Professional services and other revenues were $9.4 million compared with $10.4 million in the prior-year quarter, reflecting a decline of 9.8%. Average subscription revenue per customer was up 10% from the prior-year quarter to $11,198.
Operating Details
Gross profit reported during the quarter was $342.8 million compared with $247.9 million in the prior-year quarter. GAAP operating loss during the quarter was reported at $52.3 million compared with a loss of $16.6 million in the prior-year quarter. Non-GAAP operating income during the quarter was $29.4 million compared with $27.5 million in the prior-year quarter.
Cash Flow & Liquidity
During the quarter, HubSpot generated $40.9 million from operating activities compared with $38.2 million in the prior-year period. As of Jun 30, 2022, the company had $305.7 million in cash and cash equivalents with $264.2 million of operating lease liabilities, net of current portion.
Guidance
For third-quarter 2022, HubSpot forecasts revenues to be in the range of $425 million to $426 million. The company expects non-GAAP net income per share to be in the band of 50 cents to 52 cents.
For 2022, the company has lowered the revenue guidance from $1.722 billion-$1.728 billion to $1.69 billion to $1.695 billion owing to challenging macroeconomic conditions. Non-GAAP operating income is expected to be within $143 million-$144 million compared with an earlier expectation of $152 million to $154 million. Non-GAAP net income per share is likely to be in the range of $2.28-$2.30, down from $2.40-$2.42 projected earlier.
Zacks Rank & Stocks to Consider
HubSpot currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First Bancorp. (FBP - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 17.1%, on average, in the trailing four quarters. Over the past year, the stock has risen 18.2%.
Earnings estimates for the current year have moved up 16.8% since August 2021. First Bancorp operates in six segments – Commercial and Corporate Banking, Mortgage Banking, Consumer Banking, Treasury and Investments, United States Operations and Virgin Islands Operations.
Home Bancorp, Inc. (HBCP - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 15.5% in the previous quarter and a stellar earnings surprise of 26.9%, on average, in the trailing four quarters. The company specializes in providing one-to-four family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans and consumer loans.
Earnings estimates for the current year have moved up 27.2% since August 2021.
Liberty Energy Inc. (LBRT - Free Report) has a Zacks Rank #1. The Zacks Consensus Estimate for Liberty Energy’s current-year earnings has been revised 307.7% upward since August 2021.
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HubSpot, Inc (HUBS - Free Report) reported relatively healthy second-quarter 2022 results, with both the bottom line and the top line surpassing the respective Zacks Consensus Estimate, driven by strong product innovation and a deep understanding of its customers’ requirements. The company’s strategic priority is to deliver a world-class front-office platform by investing in anchor hubs and innovating new emerging hubs. The company continues to expand its app ecosystem, with its integration catalog growing nearly 40% year over year. HubSpot also remains focused on becoming a leading CRM platform provider in the near future. The solid quarterly performance was reflected in share price appreciation post earnings release.
Quarter Details
GAAP net loss in the quarter was $56.4 million or a loss of $1.18 per share compared with a net loss of $24.6 million or a loss of 53 cents per share in the prior-year quarter.
Non-GAAP net income in the second quarter was $22.4 million or 44 cents per share compared with $21.6 million or 43 cents per share in the prior-year quarter. It beat the Zacks Consensus Estimate by a penny.
Revenues during the reported quarter were $421.8 million compared with $310.8 million in the prior-year quarter, reflecting growth of 35.7% and beating the Zacks Consensus Estimate of $410 million. The strengthening of the U.S. dollar throughout the second quarter contributed majorly to the earnings growth. Growing customer base, which surged 25% year over year to 150,865, also contributed to the results.
Subscription revenues in the quarter were $421.4 million compared with $300.4 million in the year-ago quarter, reflecting growth of 40.3%. Professional services and other revenues were $9.4 million compared with $10.4 million in the prior-year quarter, reflecting a decline of 9.8%. Average subscription revenue per customer was up 10% from the prior-year quarter to $11,198.
Operating Details
Gross profit reported during the quarter was $342.8 million compared with $247.9 million in the prior-year quarter. GAAP operating loss during the quarter was reported at $52.3 million compared with a loss of $16.6 million in the prior-year quarter. Non-GAAP operating income during the quarter was $29.4 million compared with $27.5 million in the prior-year quarter.
Cash Flow & Liquidity
During the quarter, HubSpot generated $40.9 million from operating activities compared with $38.2 million in the prior-year period. As of Jun 30, 2022, the company had $305.7 million in cash and cash equivalents with $264.2 million of operating lease liabilities, net of current portion.
Guidance
For third-quarter 2022, HubSpot forecasts revenues to be in the range of $425 million to $426 million. The company expects non-GAAP net income per share to be in the band of 50 cents to 52 cents.
For 2022, the company has lowered the revenue guidance from $1.722 billion-$1.728 billion to $1.69 billion to $1.695 billion owing to challenging macroeconomic conditions. Non-GAAP operating income is expected to be within $143 million-$144 million compared with an earlier expectation of $152 million to $154 million. Non-GAAP net income per share is likely to be in the range of $2.28-$2.30, down from $2.40-$2.42 projected earlier.
Zacks Rank & Stocks to Consider
HubSpot currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First Bancorp. (FBP - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 17.1%, on average, in the trailing four quarters. Over the past year, the stock has risen 18.2%.
Earnings estimates for the current year have moved up 16.8% since August 2021. First Bancorp operates in six segments – Commercial and Corporate Banking, Mortgage Banking, Consumer Banking, Treasury and Investments, United States Operations and Virgin Islands Operations.
Home Bancorp, Inc. (HBCP - Free Report) , sporting a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 15.5% in the previous quarter and a stellar earnings surprise of 26.9%, on average, in the trailing four quarters. The company specializes in providing one-to-four family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans and consumer loans.
Earnings estimates for the current year have moved up 27.2% since August 2021.
Liberty Energy Inc. (LBRT - Free Report) has a Zacks Rank #1. The Zacks Consensus Estimate for Liberty Energy’s current-year earnings has been revised 307.7% upward since August 2021.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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