We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can HUBS' AI Innovation Boost its Competitive Edge in the CRM Space?
Read MoreHide Full Article
Key Takeaways
HubSpot added 9,700 customers in Q2, raising its total to 267,982, up 18% year over year.
AI tools like Customer Agent and Prospect Agent are seeing strong adoption.
Earnings estimates for 2025 and 2026 have moved higher, pointing to stronger investor confidence.
HubSpot, Inc. (HUBS - Free Report) is witnessing consistent subscriber growth across multiple end markets. During the second quarter, HubSpot added more than 9,700 net new customers, which increased the total customer count to 267,982, up 18% year over year.
The company is aggressively integrating AI across its product suite to transform its HubSpot into an AI-powered customer platform. It has rapidly introduced several embedded AI native features in all hubs and rolled out AI agents to streamline work processes for clients. Its Customer Agent, which handles questions across marketing and sales with full context, is now used by 4,000 customers. Prospect Agent, which focuses on researching contacts in the client’s CRM and sends personalized outreach, has been adopted by 3,700 HupSpot customers.
HubSpot Sales Hub witnessed 71% year-over-year seat upgrades driven by growing demand for AI features such as deal intelligence, guided actions, and AI meeting assistant. HubSpot was one of the first to introduce connectors with ChatGPT and Claude. More than 20,000 customers have already utilized these LLM connectors across 23 million CRM records. The company’s acquisition of Frame.ai and Dashworks has accelerated HUBS’ AI advancement initiatives. With an aim to become an AI-first company, HubSpot is also integrating AI to boost efficiency across its internal processes. These factors are expected to drive customer growth in the upcoming quarters.
How Are Competitors Faring?
In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) and Microsoft Corporation (MSFT - Free Report) . Microsoft has been actively incorporating advanced AI capabilities across its CRM offering, Dynamics 365. AI native tools like Dynamics 365 customer service, Dynamics 365 contact center, Dynamics 365 Customer Insights drive efficiency across multiple operations, including sales, marketing, finance, client support and more. MSFT’s Azure open AI services allow users to access OpenAI models, such as GPT-4 and DALL-E. Such capabilities are propelling growth in Microsoft’s Dynamics CRM business.
Salesforce is also continuously expanding its generative AI offerings to tap the growing opportunities in the space. The company’s leading-edge AI tools, such as Sales AI, Commerce AI, Marketing AI and Customer Service AI, are gaining strong popularity. In the second quarter, Salesforce introduced new MuleSoft AI capabilities, including support for Model Context Protocol and Agent2Agent, to enable secure, scalable AI agent orchestration, along with generative AI development tools to accelerate integration and multi-agent workflow deployment.
HUBS’ Price Performance, Valuation and Estimates
HubSpot has declined 3.9% over the past year compared with the industry’s growth of 40.7%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 11.99 book value, higher than 6.47 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimate for 2025 and 2026 have improved 1.5% to $9.49 per share and 0.98% to $11.36 per share, respectively, over the past year.
Image: Shutterstock
Can HUBS' AI Innovation Boost its Competitive Edge in the CRM Space?
Key Takeaways
HubSpot, Inc. (HUBS - Free Report) is witnessing consistent subscriber growth across multiple end markets. During the second quarter, HubSpot added more than 9,700 net new customers, which increased the total customer count to 267,982, up 18% year over year.
The company is aggressively integrating AI across its product suite to transform its HubSpot into an AI-powered customer platform. It has rapidly introduced several embedded AI native features in all hubs and rolled out AI agents to streamline work processes for clients. Its Customer Agent, which handles questions across marketing and sales with full context, is now used by 4,000 customers. Prospect Agent, which focuses on researching contacts in the client’s CRM and sends personalized outreach, has been adopted by 3,700 HupSpot customers.
HubSpot Sales Hub witnessed 71% year-over-year seat upgrades driven by growing demand for AI features such as deal intelligence, guided actions, and AI meeting assistant. HubSpot was one of the first to introduce connectors with ChatGPT and Claude. More than 20,000 customers have already utilized these LLM connectors across 23 million CRM records. The company’s acquisition of Frame.ai and Dashworks has accelerated HUBS’ AI advancement initiatives. With an aim to become an AI-first company, HubSpot is also integrating AI to boost efficiency across its internal processes. These factors are expected to drive customer growth in the upcoming quarters.
How Are Competitors Faring?
In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) and Microsoft Corporation (MSFT - Free Report) . Microsoft has been actively incorporating advanced AI capabilities across its CRM offering, Dynamics 365. AI native tools like Dynamics 365 customer service, Dynamics 365 contact center, Dynamics 365 Customer Insights drive efficiency across multiple operations, including sales, marketing, finance, client support and more. MSFT’s Azure open AI services allow users to access OpenAI models, such as GPT-4 and DALL-E. Such capabilities are propelling growth in Microsoft’s Dynamics CRM business.
Salesforce is also continuously expanding its generative AI offerings to tap the growing opportunities in the space. The company’s leading-edge AI tools, such as Sales AI, Commerce AI, Marketing AI and Customer Service AI, are gaining strong popularity. In the second quarter, Salesforce introduced new MuleSoft AI capabilities, including support for Model Context Protocol and Agent2Agent, to enable secure, scalable AI agent orchestration, along with generative AI development tools to accelerate integration and multi-agent workflow deployment.
HUBS’ Price Performance, Valuation and Estimates
HubSpot has declined 3.9% over the past year compared with the industry’s growth of 40.7%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 11.99 book value, higher than 6.47 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimate for 2025 and 2026 have improved 1.5% to $9.49 per share and 0.98% to $11.36 per share, respectively, over the past year.
Image Source: Zacks Investment Research
HubSpot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.