Inbound marketing specialist HubSpot (NYSE: HUBS) recently reported its fourth-quarter results that surpassed market expectations. The company continues to see significant benefits from its PaaS ecosystem.

HubSpot’s Financials

HubSpot’s fourth-quarter revenues grew 47% to $369.3 million, ahead of the Street’s forecast of $357.52 million. Non GAAP EPS of $0.58 beat the market’s estimates of $0.53.

By segment, subscription revenues grew 47% to $358.7 million and Professional services and other revenues grew 38% to $10.7 million.

Among other operating metrics, its customer base grew 30% to over 135,442, when compared with the customer base from 2020’s fourth quarter. Total average subscription revenue per customer grew 11% to $10,875.

For the full year, HubSpot’s revenues grew 47.3% to $1.3 billion and EPS was $1.82.

For the first quarter, HubSpot forecast revenues of $381-383 million and an EPS of $0.46-$0.48. The market was looking for Q1 revenues of $376.05 million and an EPS of $0.46. HubSpot expects to end the year with revenues of $1.72-$1.73 billion and an EPS of $2.34-$2.42. The market was looking for revenues of $1.65 billion and EPS of $2.27 for the year.

HubSpot’s Product Expansion

Recently, HubSpot announced the launch of Operations Hub. The new hub meets the needs of operations teams that struggle to get clean data. It helps automate and report on data and drive insights to help grow the business. Operations Hub provides revenue operations teams with access to over 100 native integrations that bring in more data into HubSpot to make it even more powerful. It supercharges HubSpot CRM and drives more value.

Last quarter, it also introduced a new lever for growth with payments and commerce. HubSpot believes that commerce-enabled CRM can drive growth for its customers. It released HubSpot Payments to all US customers. The solution is focused on companies with fewer than 100 employees. Payments is an end-to-end payment solution that supports all major credit cards and ACH payments. The solution has been built as part of the HubSpot CRM platform to deliver a connected buyer experience. Companies can set up payment capabilities without writing code or adding any integrations and thus accept payments confidently and seamlessly.

HubSpot has been building its PaaS ecosystem. It recently achieved the milestone of having more than 1,000 apps available in its marketplace that span use cases in marketing, sales, service, and more. Almost two years ago, the marketplace had just over 500 apps. HubSpot customers install seven apps on average, and more than a quarter of its customers install more than 10.

Its stock is trading at $544.92 with a market capitalization of $25.75 billion. It touched a 52-week high of $866.00 in November last year. In January, it had fallen to a 52-week low of $403.00. It is a good opportunity to buy this stock and made it to my list of 25 Cloud Stocks to Buy in 2022.