Benzinga - Shares of HubSpot Inc (NYSE: HUBS) continued spiked on Friday, after the company reported quarterly results.
- Piper Sandler analyst Brent Bracelin maintained an Overweight rating, while raising the price target from $350 to $450.
- Needham analyst Joshua Reilly reiterated a Buy rating, while raising the price target from $380 to $470.
- Mizuho Securities analyst Siti Panigrahi reaffirmed a Buy rating, while raising the price target from $350 to $450.
- RBC Capital Markets analyst Rishi Jaluria reiterated an Outperform rating, while raising the price target from $380 to $500.
- BMO Capital Markets analyst Keith Bachman maintained an Outperform rating, while raising the price target from $345 to $465.
Piper Sandler
- “Investor fears that the 7% layoff announcement two weeks ago may have signaled further erosion in demand proved to be too pessimistic, evident by the $24M top-line beat during Q4 on 27% y/y growth (vs. our estimate of 20%),” Bracelin said.
- “Q4 demand trends remained challenged, but were similar to conditions witnessed during Q3 with few signs of further deterioration in demand from mid-market customers,” he added.
- HubSpot’s fourth-quarter results were “strong,” with a “5.5% beat on recurring revenue,” Reilly wrote. The company issued guidance for fiscal 2023 “with reported revenue growth of 19% versus consensus of 20.1% including a 100 bps currency headwind.”
- “We expect investors will be relieved by management commentary the demand environment remained stable in Q4, not improving or worsening dramatically,” Reilly stated.
- Although HubSpot delivered a strong revenue beat, “the uncertain macro environment has remained the same as Q3 with lengthening sales cycles and more scrutiny around deals,” Panigrahi stated.
- “We are encouraged by the company's strategy to navigate through this macro environment,” the analyst mentioned. “We are confident in HubSpot's strength as an SMB CRM platform and durability of its growth with meaningful margin expansion,” he added.
- “In a choppy earnings season, HubSpot's 4Q stands out as demonstrating solid results, despite macro, while also taking a conservative outlook and showing margin improvement,” Jaluria wrote in a note.
- “In 4Q, both revenue (up 35% Y/Y cc) and billings (up 29% cc) came in ahead of expectations, while 2023 guidance of 20% cc revenue growth was better than feared supported by encouraging multi-hub deal trends, resilient gross retention, and another impressive quarter of net adds,” he added.
- “HUBS reported another quarter of better-than-expected results, and most metrics beat our/consensus estimates,” Bachman said.
- “Despite macro pressure that has continued (but not worsened), HUBS CC billings growth of 29% y/y exceeded our forecast by 1pt, and we forecast solid FY23 growth as HUBS continues to sell into its large TAM,” he added.
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