NYSE$HUBS

HubSpot · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

HubSpot's second quarter performance in 2020 showed revenue growth and customer base expansion amidst evolving market conditions.

HubSpot reported a 25% increase in total revenue to $203.6 million compared to Q2 2019. The company grew its total customer base to 86,672, a 34% increase year-over-year. While GAAP net loss was ($29.4) million, non-GAAP net income was $16.7 million.

  • Total revenue increased by 25% compared to Q2 2019, reaching $203.6 million.
  • Subscription revenue grew by 26% year-over-year, amounting to $196.4 million.
  • GAAP operating loss was ($13.6) million, while non-GAAP operating income was $19.2 million.
  • Total customers grew to 86,672, representing a 34% increase compared to the previous year.

Headline financials

Total Revenue

$204M

Previous: $163M+24.7%
EPS (adj)

$0.34

Previous: $0.37-8.1%
Total Customers

86.7K

Previous: 64.7K+34.0%
Average Subscription Revenue Per Customer

$9.47K

Previous: $9.97K-5.0%
Capital Expenditures

-$19.9M

Previous: -$12.1M-65.0%
Free Cash Flow

-$49.3M

Previous: -$29.4M-67.6%
Net Income

-$29.4M

Previous: -$17.4M-69.4%
Operating Income

-$13.6M

Previous: -$15.7M+13.4%
Gross Profit

$165M

Previous: $132M+24.8%
Cash & Equivalents

$201M

Previous: $238M-15.5%
Total Assets

$1.81B

Previous: $1.46B+23.7%

Revenue & EPS history

HubSpot · Revenue · Quarterly

$204M

Q2 2020+24.7%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

HubSpot · $204M total across 2 segments · Q2 2020

  • Subscription
    $196M+26.0%
  • Professional Services and Other
    $7.19M-2.5%

Forward guidance

HubSpot provided guidance for the third quarter and full year of 2020, factoring in the uncertainty caused by the COVID-19 pandemic. They expect total revenue to be in the range of $210.0 million to $211.0 million for Q3 2020 and $828.0 million to $832.0 million for the full year 2020.

Tailwinds

  • Total revenue is expected to be in the range of $210.0 million to $211.0 million for Q3 2020.
  • Non-GAAP operating income is expected to be in the range of $7.5 million to $8.5 million for Q3 2020.
  • Non-GAAP net income per common share is expected to be in the range of $0.11 to $0.13 for Q3 2020.
  • Total revenue is expected to be in the range of $828.0 million to $832.0 million for the full year 2020.
  • Non-GAAP operating income is expected to be in the range of $52.0 million to $54.0 million for the full year 2020.

Headwinds

  • Many customers and prospects are still operating under very challenging circumstances.
  • Customers and prospects may re-evaluate their spend.
  • Third quarter 2020 guidance factors in the heightened uncertainty caused by the COVID-19 pandemic.
  • Full year 2020 guidance factors in the heightened uncertainty caused by the COVID-19 pandemic.
  • Actual results may differ materially due to the impact of COVID-19 on the business and broader economy.

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 Q2 2020

Historical avgQ2 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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