HubSpot (HUBS) Stock Soars on Robust Results, Cowen's Upgrade to Outperform
Shares of HubSpot Inc (NYSE: HUBS) are up more than 7% in premarket trading after the software company reported better-than-expected earnings and revenue in Q4 2021.
HubSpot reported adjusted EPS of 58 cents, compared to the consensus estimates of EPS 53 cents, and up from 40 cents in the year-ago period. The company’s previously issued guidance for Q4 2021 was in the range of 52 cents to 54 cents a share.
Revenue came in at $369.3 million in the quarter, up 47% YOY, and beating the consensus estimates of $357.6 million. Subscription revenue stood at $358.7 million, up 47% YOY, and compared to the analyst consensus of $347.2 million.
For the first quarter of 2021, the company expects revenue in the range of $381 million to $383 million, compared to the consensus estimates of $376.8 million. It also expects adjusted EPS between 46 cents and 48 cents in Q1 2022, compared to the analyst consensus of 46 cents per share.
"I am incredibly proud of how the HubSpot team was able to adapt and execute in 2021 to deliver a truly exceptional year," said Yamini Rangan, CEO of HubSpot.
"We went into 2021 with the goal of becoming the #1 CRM platform for scaling companies, and we made significant progress by staying focused on our key strategic priorities. 2022 will be a year of sustained focus and consistency as we continue to invest in those priorities."
Cowen analyst Derrick Wood upgraded shares to Outperform from Market Perform with a $750.00 per share price target (up from $600.00).
“With a ~35%+ pullback from Nov '21 peaks, coupled w/ mgmt highly confident in its new post-COVID growth levers being durable, we view this as a compelling buying opportunity. HUBS is successfully moving up-market, driving up ARPU & expanding across the CRM landscape w/ a broadening portfolio & we see a durable 30%+ LT growth runway ahead,” the analyst said in a client note.
Mizuho analyst Siti Panigrahi also raised the price target to $625.00 per share from the prior $500.00 after witnessing “broad-based strength with a particular edge from Operations Hub (40% of new bookings from enterprise tier launched in November).”
“After a 38% retreat from its 52-week high, investors concerned about 2022 growth guidance should find comfort in the company's 33% Y/Y top-line guide (above consensus of 28% Y/Y). The quarter once again validates our view that HubSpot's consistent execution and ongoing product expansion position it favorably to benefit from digital transformation efforts, with progress toward sustainable growth and margin expansion likely to manifest further in 2022,” Panigrahi wrote in a note.
By Senad Karaahmetovic | [email protected]