HubSpot’s Q3 2024 Revenue Grows Amid AI Innovations
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HubSpot’s Q3 2024 Revenue Grows Amid AI Innovations

HubSpot, Inc. ( (HUBS) ) has released its Q3 earnings. Here is a breakdown of the information HubSpot, Inc. presented to its investors.

HubSpot, Inc., a leading provider of customer relationship management software, announced its financial results for the third quarter of 2024, demonstrating significant growth and a strong focus on innovation in the SaaS industry.

In the third quarter, HubSpot reported a total revenue of $669.7 million, marking a 20% increase from the same period last year. The company’s subscription revenue also grew by 20% to $654.7 million, while professional services and other revenues saw a 28% rise. Notably, HubSpot achieved a GAAP net income of $8.1 million, recovering from a net loss in the previous year, and its non-GAAP net income improved to $116.6 million.

The company also reported enhancements in its operating margins, with a non-GAAP operating margin of 18.7%, up from 16.5% in the prior year. HubSpot’s customer base grew to 238,128, increasing by 23% compared to the previous year. However, the average subscription revenue per customer decreased slightly by 2%. The company has demonstrated strong cash flow generation, with $159.5 million in operating cash flow, and an improved balance sheet with $2.1 billion in cash and investments.

Looking ahead, HubSpot remains optimistic about its growth trajectory, with projected revenues for the fourth quarter and full year 2024 expected to continue on an upward trend. The company’s commitment to embedding artificial intelligence across its platforms is set to drive further innovation and growth, as highlighted in their recent INBOUND conference. Management’s confidence in sustainable growth reflects HubSpot’s strategic focus and operational resilience.

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