HubSpot (HUBS) Reports Q1: Everything You Need To Know Ahead Of Earnings

Sales and marketing software maker HubSpot (NYSE:HUBS) will be reporting results tomorrow after the bell. Here's what to look for.

HubSpot beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $581.9 million, up 23.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates and a decent beat of analysts' ARR (annual recurring revenue) estimates. It added 10,993 customers to reach a total of 205,091.

Is HubSpot a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting HubSpot's revenue to grow 19.3% year on year to $598.2 million, slowing from the 26.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.50 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HubSpot has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.3% on average.

Looking at HubSpot's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 19.9%, meeting analysts' expectations, and Zeta reported revenues up 23.7%, topping estimates by 4.2%. Freshworks traded down 19.6% following the results.

Read our full analysis of Freshworks's results here and Zeta's results here.

Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. HubSpot is down 7.9% during the same time and is heading into earnings with an average analyst price target of $701.5 (compared to the current share price of $617).

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