HubSpot reported third‑quarter revenue of $809.5 million, a 21% year‑over‑year increase that surpassed consensus estimates of $786.26 million by $23.2 million, or 2.9% above expectations. The lift was driven by a 21% rise in subscription revenue and a 19% rise in services and other revenue, reflecting robust demand for the company’s AI‑enhanced marketing, sales, and service platforms.
Adjusted earnings per share reached $2.66, beating the consensus of $2.58 by $0.08, or 3.1% above expectations. The EPS beat was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin subscription contracts. Operating margin expanded to 20% from 18.7% in the same quarter last year, underscoring the company’s ability to scale its AI‑powered platform while keeping operating expenses in check.
Management raised its outlook for the remainder of the year, projecting fourth‑quarter revenue of $828–$830 million and adjusted EPS of $2.97–$2.99. Full‑year 2025 revenue guidance was increased to $3.113–$3.115 billion and EPS to $9.60–$9.62, up from the prior guidance of $3.103–$3.105 billion and $9.55–$9.57. The upward revisions signal confidence that the AI‑driven growth momentum will continue, even as the company anticipates a modest deceleration in year‑over‑year growth to 17.9% in the fourth quarter.
The results were underpinned by the continued adoption of HubSpot’s AI agents. CEO Yamini Rangan highlighted that the Customer Agent and Prospecting Agent were key contributors, noting that “customers are seeing value in AI‑powered automation that drives both acquisition and expansion.” CFO Kathryn Bueker added that the company added 10,900 net new customers in the quarter, bringing the total to 279,000 and growing the customer base by 17% year‑over‑year.
Investors reacted with caution, focusing on the projected slowdown in growth and the intensifying competition in the SaaS market. While the company’s earnings beat and guidance raise demonstrate operational strength, market sentiment remained tempered by concerns that the 17.9% growth rate for Q4 and the broader competitive landscape could erode the momentum seen in Q3.
The earnings release confirms HubSpot’s ability to deliver strong revenue and earnings growth through its AI‑first strategy, while the guidance signals confidence in sustaining that trajectory. However, the company’s future performance will hinge on its capacity to maintain pricing power, manage costs, and navigate a competitive environment that is increasingly focused on AI capabilities.
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