Hubspot just released their Q2 results with accelerating revenue:
Total revenue was $310.8 million, up 53% compared to Q2’20.
Subscription revenue was $300.4 million, up 53% compared to Q2’20.
Professional services and other revenue was $10.4 million, up 44% compared to Q2’20.
Non-GAAP operating margin was 8.9%, compared to 9.4% in Q2’20.
Non-GAAP operating income was $27.5 million, compared to $19.2 million in Q2’20.
Non-GAAP net income was $21.6 million, or $0.46 per basic and $0.43 per diluted share, compared to $16.7 million, or $0.38 per basic and $0.34 per diluted share in Q2’20.
1.3B cash
During the second quarter, the company generated $41.4 million of operating cash flow, excluding the $3.2 million used for the repayment of our convertible notes, compared to $15.0 million during Q2’20, which excluded the $48.7 million used for the repayment of our convertible notes.
During the second quarter, the company generated $25.6 million of free cash flow, compared to $0.8 million during Q2 2020
Grew total customers to 121,048 at June 30, 2021, up 40% from June 30, 2020.
Total average subscription revenue per customer was $10,198 during the second quarter of 2021, up 8% compared to the second quarter of 2020.
“We finished out the first half of the year with yet another quarter of strong performance across the business,” said Yamini Rangan, Chief Customer Officer at HubSpot. “With the launch of CMS Hub Starter and recent improvements to CMS Hub Professional and Enterprise, we’re well-positioned to continue to support our customers through the ongoing trend of digital transformation as more companies have to adapt to doing business online.”
Third Quarter 2021:
Total revenue is expected to be in the range of $325 million to $327 million. (43% guidance, will probably be between 48-50% growth for Q3)
Non-GAAP operating income is expected to be in the range of $27 million to $29 million.
Non-GAAP net income per common share is expected to be in the range of $0.42 to $0.44. This assumes approximately 50.6 million weighted average diluted shares outstanding.
Full Year 2021:
Total revenue is expected to be in the range of $1,268 million to $1,272 million.
Non-GAAP operating income is expected to be in the range of $107 million to $109 million.
Non-GAAP net income per common share is expected to be in the range of $1.67 to $1.69. This assumes approximately 50.5 million weighted average diluted shares outstanding.
Hubspot also announced a change of the CEO (the new CEO was already leading the company since March because the current CEO had an accident). Current CEO will step down as executive chairman.
Pretty good results, specially with the valuation of the company being lower compared to the companies discussed here. The stock is up 3% for now AH. I don’t know what to think yet about the change of CEO, but happy with the results.