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Jun 30, 2023

HubSpot Q2 2023 Earnings Report

HubSpot's financial performance demonstrated strong growth in revenue and customer base, with increased profitability on a non-GAAP basis.

Key Takeaways

HubSpot reported a 25% increase in total revenue to $529.1 million, driven by subscription revenue growth. The company's customer base grew by 23% year-over-year, reaching 184,924 customers. While GAAP operating margin was negative, non-GAAP operating margin improved to 14.0%.

Total revenue increased by 25% compared to Q2 2022, reaching $529.1 million.

Subscription revenue grew by 26% year-over-year, amounting to $517.7 million.

The customer base expanded to 184,924, a 23% increase from the previous year.

Non-GAAP operating margin improved to 14.0%, compared to 7.0% in Q2 2022.

Total Revenue
$529M
Previous year: $422M
+25.4%
EPS
$1.34
Previous year: $0.44
+204.5%
Total Customers
184.92K
Previous year: 150.87K
+22.6%
ARPU
$11.4K
Previous year: $11.2K
+2.1%
Gross Profit
$442M
Previous year: $343M
+28.9%
Cash and Equivalents
$457M
Previous year: $306M
+49.6%
Free Cash Flow
$65.7M
Previous year: $22.4M
+193.1%
Total Assets
$2.73B
Previous year: $2.27B
+20.0%

HubSpot

HubSpot

HubSpot Revenue by Segment

Forward Guidance

HubSpot provided guidance for the third quarter and full year 2023, including revenue and non-GAAP operating income estimates.

Positive Outlook

  • Total revenue for Q3 2023 is expected to be in the range of $532.0 million to $534.0 million.
  • Favorable foreign exchange rates are expected to be a one to two point tailwind to third quarter 2023 revenue growth.
  • Non-GAAP operating income for Q3 2023 is expected to be in the range of $67.0 million to $69.0 million.
  • Total revenue for full year 2023 is expected to be in the range of $2.116 billion to $2.122 billion.
  • Favorable foreign exchange rates are expected to be a 50 basis points tailwind to full year 2023 revenue growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income