Inbound marketing specialist HubSpot (NYSE:HUBS) recently reported its third quarter results that continued to surpass market expectations. HubSpot remains focused on its product strategy to ensure that it expands its reach in both small and large businesses.

HubSpot’s Financials

HubSpot’s third quarter revenues grew 49% to $339.2 million, ahead of the Street’s forecast by 13.6%. Non GAAP EPS of $0.50 beat the market’s estimate of $0.44.

By segment, subscription revenues grew 49% to $329 million and Professional services and other revenues grew 39% to $10.2 million.

Among other operating metrics, its customer base grew 34% to over 128,144. Total average subscription revenue per customer grew 9% to $10,536.

For the fourth quarter, HubSpot forecast revenues of $356-358 million and an EPS of $0.52-$0.54. The market was looking for revenues of $352.4 million and an EPS of $0.52. HubSpot expects to end the year with revenues of $1.287-$1.289 billion and an EPS of $1.76-$1.78. The market was looking for revenues of $1.27 billion and an EPS of $1.69 for the year.

HubSpot’s Product Expansion

Earlier this quarter, HubSpot formally launched Operations Hub Enterprise. It had launched Operations Hub Starter and Professional earlier this year to help customers get all of their data into HubSpot and build advanced automated workflows. With Operations Hub Enterprise, its customers will be able to report on and analyze that data through a more seamless and consistent way. It also announced improvements to Service Hub by adding features such as custom surveys and a new customer portal that’s currently in public beta.

Additionally, HubSpot is also strengthening its segmentation approach across product and go-to-market. To drive that, it is bringing high-end features, which have traditionally only been available to large enterprises, down to its smaller and mid-market customers. And second, it is bringing in a human-friendly product and purchasing experience, that is normally seen in small and mid-market businesses up to large enterprises. For instance, for its enterprise tier, it added new features such as plantwide governance features, permission sets, and audit logging. It also launched SAM DOCSIS, a feature that enables customers to test changes to their portal without impacting their primary account.

It announced business units in its Marketing Hub Enterprise that allows customers to manage several brands to create a consistent and targeted experience for their audiences. It also announced new enterprise-level forecasting tools in Sales Hub and Service Hub, allowing managers to keep track of their team’s progress.

All of its efforts are delivering strong results. During the last quarter, it saw a significant increase in its ability to close large deals, which grew 83% in Q3. Its starter edition is also fueling customer acquisition, and that segment has grown to more than 50% of its total customers in Q3. Another impressive metric was the increased adoption of multiple products. Almost 60% of all HubSpot’s customers are now running multiple products, up 71%. The multi-hub adoption of HubSpot’s services will make it a stickier platform for its customers.

Its stock is trading at $840.29 with a market capitalization of $39.7 billion. It touched a 52-week high of $866.00 earlier this month. A year ago, it was trading at a 52-week low of $347.78.