HubSpot Acquired 9 Smaller Start-Ups

According to a research report by WARC and Moore Stephens, the global MarTech budgets have grown 44% last year to $99.9 billion with about 23% of marketing budgets now spent on MarTech in the UK and North America. Billion Dollar Unicorn HubSpot (NYSE: HUBS) continues to see rapid adoption of its services as well.

HubSpot’s Financials

HubSpot recently announced its fourth-quarter results that saw revenues grow 35% over the year to $144 million, ahead of the Street’s forecast of $138 million. Revenue growth was primarily driven by the 36% growth in customer base to 56,628. It ended the quarter with non-GAAP earnings of $0.37 per share, which was ahead of the market’s estimate of $0.30 and recorded an impressive 208.3% growth over the year.

By segment, revenues from subscription services grew 35% to $136.8 million. Professional and other services revenues also grew by 49% to $7.2 million for the quarter.

Among key metrics, average subscription revenue per customer fell 2.4% over the year to $10,012. Deferred revenues grew 33% to $185.5 million. Calculated billings, defined as revenues plus the change in deferred revenues grew 33% to $166.9 million. Research and development spending grew 44% over the year to $32 million in the quarter.

For the year, revenues grew 37% to $513 million, and non-GAAP earnings soared 256% to $0.89.

For the current quarter, HubSpot expects revenues of $146.5-$147.5 million with an EPS of $0.23-$0.25. The market was looking for revenues of $146.5 million with an EPS of $0.25. HubSpot expects to end the year with revenues of $648-$652 million with an EPS of $1.08-$1.16 compared to analyst estimates of $637.1 million with an EPS of $1.12.

HubSpot’s Platform Expansion

Over the past year, HubSpot has worked to transition from an app company to a suite company. It has continuously upgraded its platform to add other services for its customers. In the current year, HubSpot wants to continue to focus on its platform strategy. It is driving from an all-in-one suite to much more of an all-on-one platform. It realizes that while it would want companies to rely only on HubSpot’s applications, modern business will ultimately rely on lots of other applications as well. Instead of pushing them all over to HubSpot, it is working to get its customers to use all of their applications with HubSpot. Today, HubSpot manages its own applications’ data, workflow, and reports. In the future, it wants to manage all of its customers’ front office applications’ data, workflow, and report on that entire experience.

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