Yahoo Finance

• Revenue Growth: 18% year over year in constant currency; 16% on an as-reported basis.

• Subscription Revenue Growth: 16% year over year.

• Services and Other Revenue Growth: 13% on an as-reported basis.

• Total Customers: Over 258,000, growing 19% year over year.

• Average Subscription Revenue per Customer: $11,000, down 2% year over year in constant currency and 4% on an as-reported basis.

• Net Revenue Retention: 102%, down 2 points sequentially.

• Calculated Billings: $767 million, growing 18% year over year in constant currency and 20% on an as-reported basis.

• Operating Margin: 14%, down 1 point compared to the year-ago period.

• Net Income: $96 million or $1.78 per fully diluted share.

• Free Cash Flow: $122 million or 17% of revenue.

• Cash and Marketable Securities: $2.2 billion at the end of March.

• Share Repurchase Program: Authorized up to $500 million over the next 12 months.

• Q2 2025 Revenue Guidance: $738 million to $740 million, up 16% year over year.

• Full Year 2025 Revenue Guidance: $3.036 billion to $3.044 billion, up 16% year over year.

• Full Year 2025 Free Cash Flow Guidance: Approximately $570 million.

• Warning! GuruFocus has detected 2 Warning Signs with CVRX.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• HubSpot Inc (NYSE:HUBS) reported an 18% year-over-year revenue growth in constant currency for Q1 2025.

• The company added over 10,000 net new customers, bringing the total to over 258,000 globally, marking a 19% increase year over year.

• HubSpot Inc (NYSE:HUBS) announced its first-ever share repurchase program, authorizing up to $500 million, signaling confidence in its business and growth opportunities.

• AI adoption is accelerating, with Copilot user engagement more than doubling from 270,000 in Q4 to over 660,000 in Q1.

• The company is expanding its AI capabilities, with customer agent adoption doubling in three months and plans to extend it to all Pro and Enterprise customers across every hub starting June 2.

Negative Points

• Average subscription revenue per customer decreased by 2% year over year in constant currency and 4% on an as-reported basis.

• Net revenue retention was 102% in Q1, down 2 points sequentially.

• The macroeconomic environment remains uncertain, with a heightened focus on value and economic conditions expected to persist through the year.

• HubSpot Inc (NYSE:HUBS) expects net customer additions to moderate to roughly 9,000 in the coming quarters.

• The company does not expect a material impact on 2025 revenue from the midyear launch of its credit-based pricing for AI agents.