HubSpot (NYSE:HUBS) stock moved 7.5% lower in premarket Thursday after the company reported Q2 results and offered a Q3 and FY forecast.
HUBS reported a profit per share of $1.34 on revenue of $529.1 million, which compares to the consensus for a profit per share of $0.99 on revenue of $505.4M. Sales rose 25% year-over-year with subscription revenue up 26% to $517.7M.
"Our teams are driving the pace of product innovation, iterating fast with AI while executing on our bi-modal strategy, despite a still challenging macroeconomic environment," the company said.
For this quarter, HubSpot sees EPS of $1.23 on revenue of $533M, which compares to the consensus for earnings of $1.14 per share on revenue of $526.6M. For FY23, the EPS forecast sits in the range of $5.24-$5.29 on revenue of $2.116 billion-$2.122B, while the analysts were looking for EPS of $4.84 on revenue of $2.09B.
Wells Fargo analysts say the HUBS stock “is priced to perfection,” hence the move lower in shares after results.
“While Q2 was a touch light vs rising expects, we see no real fundamental change & continue to view HUBS as one of the cleaner stories in mid-cap.”
Bank of America analysts see a buying opportunity in HUBS shares.
“We view HubSpot as the leader in the vast small and midsize business (SMB) front office applications category, with the leading platform, channel and brand. HubSpot is a natural AI play, with the largest data set (1bn+ transactions and ~185,000 customers) residing in one organically built platform, enabling rapid development of AI offerings to address front office complexity,” they wrote.