Inbound marketing specialist HubSpot (NYSE: HUBS) recently reported its second-quarter results that continued to surpass market expectations. HubSpot is focusing on expanding its partner network and app development capabilities to fully leverage the power of PaaS.

HubSpot’s Financials

HubSpot’s second-quarter revenues grew 53% to $310.8 million, ahead of the Street’s forecast of $296.01 million. Non GAAP EPS of $0.43 beat the market’s estimate of $0.32.

By segment, subscription revenues grew 53% to $300.4 million and Professional services and other revenues grew 44% to $10.4 million.

Among other operating metrics, its customer base grew 40% to 121,048. Total average subscription revenue per customer grew 9% to $10,198.

HubSpot forecast revenues of $325-327 million for the quarter with an EPS of $0.42-$0.44. The market was looking for revenues of $296.03 million with an EPS of $0.32. HubSpot expects to end the year with revenues of $1.268-$1.272 billion and an EPS of $1.67-$1.69. The market was looking for revenues of $1.24 billion for the year with an EPS of $1.65.

HubSpot’s Product Expansion

Recently, HubSpot announced its partnership with Envato, a leading online community for creative assets, tools, and talent. As part of the partnership, the two companies will launch over 250 unique website themes on Envato Market, made specifically for the HubSpot CMS Hub. The new templates provide businesses with a number of ways to customize their online presence. CMS Hub has been designed for marketers and developers and helps customers create seamless digital experiences easily using capabilities such as drag and drop page editing, mobile optimization, and premium hosting. Since CMS Hub has been built as part of HubSpot’s CRM platform, customers have direct access to all of their audience data, and they can leverage this to make better-informed strategic decisions and deliver better digital experiences. Melbourne-based Envato is a creative marketplace set up in 2006. I had met with its founder couple Collis and Cyan Ta’eed, a few years ago, and learned about their interesting journey behind establishing an ecosystem geared at driving creativity.

HubSpot also continued to push forward on its PaaS focus. It recently launched its App Accelerator program that enlists HubSpot partners to build solutions to solve known customer pain points that the HubSpot product team is unable to solve. HubSpot partners have already built 25 apps for the HubSpot marketplace to solve customer requests that are helping strengthen HubSpot’s CRM and Sales Hub. Overall, HubSpot boasts of over 1 million app installs through its platform, and each customer on its platform averages the installation of over seven third-party apps.

HubSpot has been working on driving the adoption of multiple products, and the recent quarter results prove that those efforts are bearing fruit. During the last quarter, 58% of all customers were running multiple products, recording 85% growth. The mix of new customers signing for multiple products was at 50%, compared with a third of new logos that signed up for multiple products just two years ago. As more of its products continue to become adopted by businesses, HubSpot will end up building a stickier customer base for itself. I recently interviewed Dharmesh Shah, Founder and CTO of HubSpot on his entrepreneurial journey in building a unicorn.

Its stock is trading at $648.35 with a market capitalization of $30.5 billion. It touched a 52-week high of $679.19 earlier this month. In September of last year, it had fallen to a 52-week low of $260.79.