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Sep 30, 2020

HubSpot Q3 2020 Earnings Report

HubSpot's Q3 2020 results were reported, showing revenue growth and increased customer base.

Key Takeaways

HubSpot reported a 32% increase in total revenue to $228.4 million compared to Q3 2019 and grew total customers by 39% to 95,634. Non-GAAP operating income was $16.5 million, compared to $10.5 million in Q3 2019.

Total revenue increased by 32% compared to Q3 2019, reaching $228.4 million.

Subscription revenue grew by 32% compared to Q3 2019, amounting to $221.1 million.

Total customers grew to 95,634, a 39% increase compared to September 30, 2019.

GAAP net loss was ($22.5) million, or ($0.49) per basic and diluted share.

Total Revenue
$228M
Previous year: $174M
+31.5%
EPS
$0.28
Previous year: $0.32
-12.5%
Total Customers
95.63K
Previous year: 68.71K
+39.2%
ARPU
$9.67K
Previous year: $9.97K
-3.0%
Cash and Equivalents
$125M
Free Cash Flow
$25.3M

HubSpot

HubSpot

HubSpot Revenue by Segment

Forward Guidance

HubSpot provided guidance for Q4 2020 and full year 2020, factoring in the uncertainty caused by the COVID-19 pandemic.

Positive Outlook

  • Total revenue is expected to be in the range of $235.0 million to $237.0 million for Q4 2020.
  • Non-GAAP operating income is expected to be in the range of $13.0 million to $15.0 million for Q4 2020.
  • Non-GAAP net income per common share is expected to be in the range of $0.21 to $0.23 for Q4 2020.
  • Total revenue is expected to be in the range of $866.0 million to $868.0 million for the full year 2020.
  • Non-GAAP operating income is expected to be in the range of $63.5 million to $65.5 million for the full year 2020.

Challenges Ahead

  • Our fourth quarter 2020 guidance and updated full year 2020 guidance factor in the heightened uncertainty caused by the COVID-19 pandemic based on the information available to us as of November 5, 2020
  • These statements are forward-looking, and actual results may differ materially
  • Risks associated with the impact of COVID-19 on our business
  • Broader economy, and our ability to forecast our future financial performance as a result of COVID-19
  • Our history of losses