NYSE$HUBS

HubSpot · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$199M

Previous: $152M+31.1%
EPS (adj)

$0.39

Previous: $0.36+8.3%
Total Customers

78.8K

Previous: 60.5K+30.2%
Average Subscription Revenue Per Customer

$10K

Previous: $9.82K+2.0%
Capital Expenditures

-$11.1M

Previous: -$4.27M-160.2%
Free Cash Flow

-$28.8M

Previous: -$15.4M-87.5%
Net Income

-$17.7M

Previous: -$11.1M-59.6%
Operating Income

-$14.1M

Previous: -$9.04M-56.1%
Gross Profit

$161M

Previous: $122M+31.5%
Cash & Equivalents

$229M

Previous: $285M-19.6%
Total Assets

$1.59B

Previous: $1.37B+15.8%

Revenue & EPS history

HubSpot · Revenue · Quarterly

$199M

Q1 2020+31.1%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

HubSpot · $199M total across 2 segments · Q1 2020

  • Subscription
    $191M+32.6%
  • Professional Services and Other
    $7.74M+2.2%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.7%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.9%

Avg return

30 days after

61%

28 / 46 earnings

Positive

+20.0%

Q4 2015

Best reaction

-19.4%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-19.4%-26.6%-12.9%
Q4 2025+9.4%+18.1%+26.3%
Q3 2025-15.0%-15.0%-18.3%
Q1 2025-8.7%+1.5%-7.7%
Q4 2024+4.4%+2.3%-22.4%
Q3 2024+11.5%+17.7%+28.3%
Q2 2024+5.8%+4.3%+10.3%
Q1 2024-4.6%-2.9%-3.1%
Q4 2023+0.8%+1.6%-0.5%
Q3 2023-5.2%-1.4%+14.6%
Q2 2023-15.0%-14.3%-4.3%
Q1 2023+8.3%+7.3%+26.4%
Q4 2022+10.1%+5.0%+8.2%
Q3 2022-4.0%-10.3%+4.7%
Q2 2022+6.5%+4.1%-9.9%
Q1 2022-9.1%-17.1%-9.7%
Q4 2021+4.2%+6.3%-20.6%
Q3 2021+4.0%+3.6%-5.4%
Q2 2021+13.0%+12.6%+20.6%
Q1 2021-1.5%-2.5%-1.7%
Q4 2020+18.6%+24.6%+13.8%
Q3 2020+16.6%+4.4%+18.8%
Q2 2020+12.7%+12.6%+21.1%
Q1 2020+10.0%+7.1%+23.5%
Q4 2019+8.5%+8.7%-26.1%
Q3 2019-6.0%-8.4%-0.5%
Q2 2019+13.6%+16.5%+19.2%
Q1 2019-3.4%-2.4%-9.2%
Q4 2018+2.5%-0.9%+0.4%
Q3 2018+2.2%-4.3%-4.9%
Q2 2018-1.0%+1.1%+15.8%
Q1 2018-0.5%-4.0%+11.1%
Q4 2017+6.7%+9.4%+20.4%
Q3 2017-0.3%-3.6%-6.2%
Q2 2017-2.1%-3.9%-0.7%
Q1 2017+7.1%+5.3%+10.1%
Q4 2016+2.4%+4.5%+13.9%
Q3 2016-3.2%+5.5%+0.4%
Q2 2016+6.5%+8.5%+7.1%
Q1 2016-4.6%
Q4 2015+20.0%
Q3 2015+2.9%
Q2 2015-4.9%
Q1 2015+16.1%
Q4 2014+6.6%
Q3 2014+0.9%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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