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Mar 31, 2020
HubSpot Q1 2020 Earnings Report
HubSpot's Q1 2020 results were announced, revealing a revenue increase of 31% year-over-year, despite headwinds from the COVID-19 pandemic. The company is focusing on supporting customers and partners during the crisis, while also managing a leadership transition.
Key Takeaways
HubSpot reported a 31% increase in total revenue to $199.0 million for Q1 2020. Despite the impact of the COVID-19 pandemic, the company grew its customer base and saw increases in subscription and professional services revenue. However, GAAP operating and net losses were reported, while non-GAAP measures showed positive operating and net income.
Total revenue grew by 31% year-over-year to $199.0 million.
Subscription revenue increased by 33% year-over-year to $191.2 million.
The company grew total customers to 78,776, a 30% increase compared to the previous year.
GAAP net loss was ($17.7) million, or ($0.41) per share, while non-GAAP net income was $16.7 million, or $0.35 per diluted share.
HubSpot
HubSpot
HubSpot Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
HubSpot provided guidance for the second quarter and full year 2020, factoring in the expected impact of the COVID-19 pandemic. Total revenue for Q2 2020 is expected to be in the range of $195.0 million to $196.0 million, and non-GAAP net income per common share is expected to be in the range of $0.23 to $0.25. For the full year 2020, total revenue is expected to be in the range of $800.0 million to $810.0 million, and non-GAAP net income per common share is expected to be in the range of $0.88 to $0.92.
Positive Outlook
- Total revenue is expected to be in the range of $195.0 million to $196.0 million for Q2 2020.
- Non-GAAP operating income is expected to be in the range of $10.5 million to $11.5 million for Q2 2020.
- Non-GAAP net income per common share is expected to be in the range of $0.23 to $0.25 for Q2 2020.
- Total revenue is expected to be in the range of $800.0 million to $810.0 million for the full year 2020.
- Non-GAAP net income per common share is expected to be in the range of $0.88 to $0.92 for the full year 2020.
Challenges Ahead
- Second quarter 2020 guidance and updated full year 2020 guidance factor in the expected impact of the global uncertainty caused by the COVID-19 pandemic.
- Outlook assumes a challenging economic environment through the second quarter of 2020 and incorporates a wider range of outcomes for the second half of the year.
- Significant variation from these assumptions could cause us to modify our guidance higher or lower.
- Many of customers and prospects are now operating under very challenging circumstances and may re-evaluate their spend.
- These statements are forward-looking, and actual results may differ materially.