Q1'26 revenue grew 23% on an as-reported basis and 18% in constant currency compared to Q1'25
CAMBRIDGE, Mass.--(BUSINESS WIRE)--HubSpot, Inc. (NYSE: HUBS), the agentic customer platform for scaling businesses, announced today its financial results for the first quarter ended March 31, 2026.
Financial Highlights:
Revenue
-
Total revenue was $881.0 million, up 23% on an as-reported basis and 18% in constant currency compared to Q1'25.
- Subscription revenue was $862.3 million, up 23% on an as-reported basis compared to Q1'25.
- Professional services and other revenue was $18.7 million, up 22% on an as-reported basis compared to Q1'25.
Operating Income (Loss)
- GAAP operating income was $27.9 million, compared to an operating loss of ($27.5) million in Q1'25.
- Non-GAAP operating income was $156.8 million, compared to $100.3 million in Q1'25.
- GAAP operating margin was 3.2%, compared to (3.8%) in Q1'25.
- Non-GAAP operating margin was 17.8%, compared to 14.0% in Q1'25.
Net Income (Loss)
- GAAP net income was $32.6 million, or $0.62 per basic and diluted share, compared to a net loss of ($21.8) million, or ($0.42) per basic and diluted share in Q1'25.
- Non-GAAP net income was $143.0 million, or $2.73 per basic and $2.72 per diluted share, compared to $95.9 million, or $1.84 per basic and $1.78 per diluted share in Q1'25.
- Weighted average basic and diluted shares outstanding for GAAP net income per share were 52.5 million and 52.6 million, respectively, compared to 52.2 million basic and diluted shares in Q1'25.
- Weighted average basic and diluted shares outstanding for non-GAAP net income per share were 52.5 million and 52.6 million respectively, compared to 52.2 million and 54.0 million, respectively in Q1'25.
Balance Sheet and Cash Flow
- The company’s cash and cash equivalents, short-term, and long-term investments balance was $1.8 billion as of March 31, 2026.
- During the first quarter, the company repurchased $211.0 million of its common stock. As of March 31, 2026, $789.0 million of the $1 billion repurchase program authorized by the Board of Directors remained available for future stock repurchases.
- During the first quarter, the company generated $198.8 million in operating cash flow, compared with $161.6 million in Q1'25.
- During the first quarter, the company generated $203.5 million of cash from non-GAAP operating cash flow and $153.7 million of non-GAAP free cash flow, compared to $166.1 million of cash from non-GAAP operating cash flow and $122.3 million of non-GAAP free cash flow during Q1'25.
Additional Recent Business Highlights
- Grew Customers to 299,458 as of March 31, 2026, up 16% from March 31, 2025.
- Average Subscription Revenue Per Customer was $11,722 during the first quarter of 2026, up 6% on an as-reported basis compared to Q1'25.
- Calculated billings were $912.3 million in the first quarter of 2026, up 19% on an as-reported basis and 17% in constant currency compared to Q1'25.
“Q1 was a solid quarter of revenue growth, customer growth, and operating margin expansion,” said Yamini Rangan, Chief Executive Officer at HubSpot. “Scaling companies are increasingly choosing HubSpot as their agentic customer platform to drive AI innovation and reduce total cost of ownership, and that's reflected in our upmarket momentum and multi-hub adoption. The AI innovations we launched at Spring Spotlight, including Customer Agent, Prospecting Agent, and Data Agent, are delivering outcomes for customers and will strengthen our AI momentum.”
Business Outlook
Based on information available as of May 7, 2026, HubSpot is issuing guidance for the second quarter and full year of 2026 as indicated below.
Second Quarter 2026:
- Total revenue is expected to be in the range of $897.0 million to $898.0 million, up 18% year over year on an as-reported basis and 16% in constant currency.
- Non-GAAP operating income is expected to be in the range of $173.0 million to $174.0 million, representing a 19% operating income margin.
- Non-GAAP net income per common share is expected to be in the range of $3.00 to $3.02. This assumes approximately 51.2 million weighted average diluted shares outstanding.
Full Year 2026:
- Total revenue is expected to be in the range of $3.700 billion to $3.708 billion, up 18% year over year on an as-reported basis and 17% in constant currency.
- Non-GAAP operating income is expected to be in the range of $762.0 million to $766.0 million, representing a 21% operating income margin.
- Non-GAAP net income per common share is expected to be in the range of $13.04 to $13.12. This assumes approximately 51.8 million weighted average diluted shares outstanding.
For Use of Non-GAAP Financial Measures
In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website ir.hubspot.com.
Conference Call Information
HubSpot will host a conference call on Thursday, May 7, 2026 at 4:30 p.m. Eastern Time (ET) to discuss the company’s first quarter 2026 financial results and its business outlook. To register for this conference call, please use this dial in registration link or visit HubSpot's Investor Relations website at ir.hubspot.com. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Participants who wish to register for the conference call webcast please use this link.
An archived webcast of this conference call will also be available on HubSpot's Investor Relations website at ir.hubspot.com.
The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
About HubSpot
HubSpot is the agentic customer platform that helps businesses connect and grow better. HubSpot delivers seamless connection for customer-facing teams with a unified platform that includes AI-powered engagement hubs, a Smart CRM, and a connected ecosystem with over 2,000 App Marketplace integrations, a community network, and educational content. Learn more at www.hubspot.com.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding management’s expectations of future financial and operational performance, including our ability to manage expenses, the timing and level of our investments, and our ability to achieve and sustain profitability, expected growth, foreign currency movement, and business outlook, including our financial guidance for the second fiscal quarter of and full year 2026 and our long-term financial framework; statements regarding our share repurchase program; statements regarding our positioning for future growth and market leadership; statements regarding the strength of our agentic customer platform; statements regarding the growth or maintenance of our upmarket business; statements regarding the economic environment; and statements regarding expected market trends, future priorities and related investments, and market opportunities, including the adoption, performance and impact of changes to our pricing, packaging and go-to-market strategies. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks associated with our history of losses; our ability to retain existing customers and add new customers; the continued growth of the market for a customer platform; our ability to develop new products and technologies and differentiate our platform from competing products and technologies, including artificial intelligence and machine learning technologies; our ability to manage our growth effectively over the long-term to maintain our high level of service; changes in our investment priorities, the timing of hiring and other expenses, and our ability to manage costs and achieve efficiencies; our ability to maintain and expand relationships with our solutions partners; the price volatility of our common stock; the impact of geopolitical conflicts, inflation, foreign currency movement, and macroeconomic instability on our business, the broader economy, our workforce and operations, the markets in which we and our partners and customers operate, and our ability to forecast our future financial performance, including variability in the intra-quarter linearity of our business; regulatory and legislative developments on the use of artificial intelligence and machine learning; and other risks set forth under the caption “Risk Factors” in our U.S Securities and Exchange Commission filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
|
| March 31, |
|
| December 31, |
| ||
|
| 2026 |
|
| 2025 |
| ||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 943,937 |
|
| $ | 882,242 |
|
Short-term investments |
|
| 747,115 |
|
|
| 821,552 |
|
Accounts receivable |
|
| 354,950 |
|
|
| 419,146 |
|
Deferred commission expense |
|
| 239,163 |
|
|
| 226,184 |
|
Prepaid expenses and other current assets |
|
| 156,451 |
|
|
| 100,611 |
|
Total current assets |
|
| 2,441,616 |
|
|
| 2,449,735 |
|
Long-term investments |
|
| 87,520 |
|
|
| 136,662 |
|
Property and equipment, net |
|
| 149,923 |
|
|
| 141,869 |
|
Capitalized software development costs, net |
|
| 221,521 |
|
|
| 213,794 |
|
Right-of-use assets |
|
| 192,339 |
|
|
| 200,821 |
|
Deferred commission expense, net of current portion |
|
| 225,317 |
|
|
| 218,991 |
|
Other assets |
|
| 178,236 |
|
|
| 165,602 |
|
Intangible assets, net |
|
| 32,510 |
|
|
| 35,225 |
|
Goodwill |
|
| 300,276 |
|
|
| 291,452 |
|
Total assets |
|
| 3,829,258 |
|
|
| 3,854,151 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
| ||
Accounts payable |
|
| 53,420 |
|
|
| 24,764 |
|
Accrued compensation costs |
|
| 107,887 |
|
|
| 99,195 |
|
Accrued commissions |
|
| 117,805 |
|
|
| 132,003 |
|
Accrued expenses and other current liabilities |
|
| 163,849 |
|
|
| 166,861 |
|
Operating lease liabilities |
|
| 37,134 |
|
|
| 39,703 |
|
Deferred revenue |
|
| 1,037,640 |
|
|
| 1,004,945 |
|
Total current liabilities |
|
| 1,517,735 |
|
|
| 1,467,471 |
|
Operating lease liabilities, net of current portion |
|
| 210,157 |
|
|
| 222,602 |
|
Deferred revenue, net of current portion |
|
| 7,108 |
|
|
| 8,495 |
|
Other long-term liabilities |
|
| 97,478 |
|
|
| 89,339 |
|
Total liabilities |
|
| 1,832,478 |
|
|
| 1,787,907 |
|
Stockholders’ equity: |
|
|
|
|
|
| ||
Common stock |
|
| 52 |
|
|
| 53 |
|
Treasury stock |
|
| 3 |
|
|
| 2 |
|
Additional paid-in capital |
|
| 2,716,280 |
|
|
| 2,814,843 |
|
Accumulated other comprehensive income |
|
| 1,789 |
|
|
| 5,244 |
|
Accumulated deficit |
|
| (721,344 | ) |
|
| (753,898 | ) |
Total stockholders’ equity |
|
| 1,996,780 |
|
|
| 2,066,244 |
|
Total liabilities and stockholders’ equity |
| $ | 3,829,258 |
|
| $ | 3,854,151 |
|
Consolidated Statements of Operations | |||||||
(in thousands, except per share data) | |||||||
| Three Months Ended March 31, |
| |||||
| 2026 |
|
| 2025 |
| ||
Revenues: |
|
|
|
|
| ||
Subscription | $ | 862,264 |
|
| $ | 698,728 |
|
Professional services and other |
| 18,731 |
|
|
| 15,409 |
|
Total revenue |
| 880,995 |
|
|
| 714,137 |
|
Cost of revenues: |
|
|
|
|
| ||
Subscription |
| 128,724 |
|
|
| 100,230 |
|
Professional services and other |
| 16,970 |
|
|
| 14,877 |
|
Total cost of revenues |
| 145,694 |
|
|
| 115,107 |
|
Gross profit |
| 735,301 |
|
|
| 599,030 |
|
Operating expenses: |
|
|
|
|
| ||
Research and development |
| 234,193 |
|
|
| 220,100 |
|
Sales and marketing |
| 386,431 |
|
|
| 326,697 |
|
General and administrative |
| 85,640 |
|
|
| 78,633 |
|
Restructuring |
| 1,094 |
|
|
| 1,080 |
|
Total operating expenses |
| 707,358 |
|
|
| 626,510 |
|
Income (loss) from operations |
| 27,943 |
|
|
| (27,480 | ) |
Other income (expense) |
|
|
|
|
| ||
Interest income |
| 12,884 |
|
|
| 20,564 |
|
Interest expense |
| (245 | ) |
|
| (644 | ) |
Other expense, net |
| (1,288 | ) |
|
| (2,309 | ) |
Total other income |
| 11,351 |
|
|
| 17,611 |
|
Income (loss) before income tax expense |
| 39,294 |
|
|
| (9,869 | ) |
Income tax expense |
| (6,740 | ) |
|
| (11,924 | ) |
Net income (loss) |
| 32,554 |
|
|
| (21,793 | ) |
Net income (loss) per share, basic | $ | 0.62 |
|
| $ | (0.42 | ) |
Net income (loss) per share, diluted | $ | 0.62 |
|
| $ | (0.42 | ) |
Weighted average common shares used in computing
|
| 52,490 |
|
|
| 52,154 |
|
Weighted average common shares used in computing
|
| 52,578 |
|
|
| 52,154 |
|
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
| Three Months Ended March 31, |
|
| |||||
| 2026 |
|
| 2025 |
|
| ||
Operating Activities: |
|
|
|
|
|
| ||
Net income (loss) | $ | 32,554 |
|
| $ | (21,793 | ) |
|
Adjustments to reconcile net (loss) income to net cash and cash equivalents provided
|
|
|
|
|
|
| ||
Depreciation and amortization |
| 40,239 |
|
|
| 28,830 |
|
|
Stock-based compensation |
| 115,744 |
|
|
| 116,693 |
|
|
Gain on strategic investments |
| (747 | ) |
|
| (115 | ) |
|
Impairment of strategic investments |
| 913 |
|
|
| 1,600 |
|
|
Benefit from deferred income taxes |
| (73 | ) |
|
| (335 | ) |
|
Amortization of debt discount and issuance costs |
| 97 |
|
|
| 500 |
|
|
Accretion of bond discount |
| (6,789 | ) |
|
| (13,848 | ) |
|
Unrealized currency translation |
| 2,527 |
|
|
| 2,717 |
|
|
Changes in assets and liabilities |
|
|
|
|
|
| ||
Accounts receivable |
| 58,437 |
|
|
| 45,655 |
|
|
Prepaid expenses and other assets |
| (60,519 | ) |
|
| (26,392 | ) |
|
Deferred commission expense |
| (22,092 | ) |
|
| (27,159 | ) |
|
Right-of-use assets |
| 7,402 |
|
|
| 6,437 |
|
|
Accounts payable |
| 31,319 |
|
|
| 18,034 |
|
|
Accrued expenses and other liabilities |
| (24,709 | ) |
|
| (1,224 | ) |
|
Operating lease liabilities |
| (13,859 | ) |
|
| (7,452 | ) |
|
Deferred revenue |
| 38,381 |
|
|
| 39,422 |
|
|
Net cash and cash equivalents provided by operating activities |
| 198,825 |
|
|
| 161,570 |
|
|
Investing Activities: |
|
|
|
|
|
| ||
Purchases of investments |
| (358,691 | ) |
|
| (674,375 | ) |
|
Maturities of investments |
| 487,690 |
|
|
| 803,059 |
|
|
Purchases of property and equipment |
| (15,422 | ) |
|
| (13,345 | ) |
|
Purchases of strategic investments |
| (5,792 | ) |
|
| (11,000 | ) |
|
Purchases of intangible assets |
| (527 | ) |
| — |
|
| |
Capitalization of software development costs |
| (34,339 | ) |
|
| (30,421 | ) |
|
Business acquisitions, net of cash acquired |
| (8,341 | ) |
|
| (51,356 | ) |
|
Net cash and cash equivalents provided by investing activities |
| 64,578 |
|
|
| 22,562 |
|
|
Financing Activities: |
|
|
|
|
|
| ||
Employee taxes paid related to the net share settlement of stock-based awards |
| (3,194 | ) |
|
| (9,070 | ) |
|
Payment of debt issuance costs |
| (2,620 | ) |
| — |
|
| |
Repayment of 2025 Convertible Notes | — |
|
|
| (90,568 | ) |
| |
Proceeds related to the issuance of common stock under stock plans |
| 16,313 |
|
|
| 19,308 |
|
|
Repurchases of common stock |
| (206,681 | ) |
|
| — |
|
|
Net cash and cash equivalents used in financing activities |
| (196,182 | ) |
|
| (80,330 | ) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
| (5,526 | ) |
|
| 8,560 |
|
|
Net increase in cash, cash equivalents and restricted cash |
| 61,695 |
|
|
| 112,362 |
|
|
Cash, cash equivalents and restricted cash, beginning of period |
| 884,945 |
|
|
| 516,720 |
|
|
Cash, cash equivalents and restricted cash, end of period | $ | 946,640 |
|
| $ | 629,082 |
|
|
Reconciliation of non-GAAP operating income and operating margin | |||||||
(in thousands, except percentages) | |||||||
| Three Months Ended March 31, |
| |||||
| 2026 |
|
| 2025 |
| ||
GAAP operating income (loss) | $ | 27,943 |
|
| $ | (27,480 | ) |
Stock-based compensation |
| 115,744 |
|
|
| 116,693 |
|
Amortization of acquired intangible assets |
| 3,172 |
|
|
| 2,913 |
|
Acquisition related expense |
| 8,811 |
|
|
| 7,082 |
|
Restructuring charges |
| 1,094 |
|
|
| 1,080 |
|
Non-GAAP operating income | $ | 156,764 |
|
| $ | 100,288 |
|
|
|
|
|
|
| ||
GAAP operating margin |
| 3.2 | % |
|
| (3.8 | %) |
Non-GAAP operating margin |
| 17.8 | % |
|
| 14.0 | % |
Reconciliation of non-GAAP net income | |||||||
(in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, |
| |||||
| 2026 |
|
| 2025 |
| ||
GAAP net income (loss) | $ | 32,554 |
|
| $ | (21,793 | ) |
Stock-based compensation |
| 115,744 |
|
|
| 116,693 |
|
Acquisition related expense |
| 8,811 |
|
|
| 7,082 |
|
Amortization of acquired intangibles assets |
| 3,172 |
|
|
| 2,913 |
|
Restructuring charges |
| 1,094 |
|
|
| 1,080 |
|
Non-cash interest expense for amortization of debt issuance costs | — |
|
|
| 500 |
| |
Impairment of strategic investments, net |
| 166 |
|
|
| 1,485 |
|
Income tax effects of non-GAAP items |
| (18,502 | ) |
|
| (12,053 | ) |
Non-GAAP net income | $ | 143,039 |
|
| $ | 95,907 |
|
|
|
|
|
|
| ||
Non-GAAP net income per share: |
|
|
|
|
| ||
Basic | $ | 2.73 |
|
| $ | 1.84 |
|
Diluted | $ | 2.72 |
|
| $ | 1.78 |
|
Shares used in non-GAAP per share calculations |
|
|
|
|
| ||
Basic |
| 52,490 |
|
|
| 52,154 |
|
Diluted |
| 52,578 |
|
|
| 54,015 |
|
Reconciliation of non-GAAP expense and expense as a percentage of revenue | |||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||
| Three Months Ended March 31, |
| |||||||||||||||||||||||||||||
| 2026 |
|
| 2025 |
| ||||||||||||||||||||||||||
|
COS, Subs-
|
| COS, Prof. services & other |
| R&D |
| S&M |
| G&A |
|
|
COS, Subs-
|
| COS, Prof. services & other |
| R&D |
| S&M |
| G&A |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
GAAP expense | $ | 128,724 |
| $ | 16,970 |
| $ | 234,193 |
| $ | 386,431 |
| $ | 85,640 |
|
| $ | 100,230 |
| $ | 14,877 |
| $ | 220,100 |
| $ | 326,697 |
| $ | 78,633 |
|
Stock -based compensation |
| (10,421 | ) |
| (689 | ) |
| (53,809 | ) |
| (31,188 | ) |
| (19,637 | ) |
|
| (7,697 | ) |
| (930 | ) |
| (56,797 | ) |
| (31,604 | ) |
| (19,665 | ) |
Amortization of acquired intangible assets |
| (2,382 | ) |
| (200 | ) |
| (28 | ) |
| (457 | ) |
| (105 | ) |
|
| (2,178 | ) |
| (200 | ) | — |
|
| (430 | ) |
| (105 | ) | |
Acquisition related expense | — |
| — |
|
| (5,618 | ) |
| (1,182 | ) |
| (2,011 | ) |
| — |
| — |
|
| (6,886 | ) |
| (122 | ) |
| (74 | ) | ||||
Non-GAAP expense | $ | 115,921 |
| $ | 16,081 |
| $ | 174,738 |
| $ | 353,604 |
| $ | 63,887 |
|
| $ | 90,355 |
| $ | 13,747 |
| $ | 156,417 |
| $ | 294,541 |
| $ | 58,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
GAAP expense as a percentage of revenue |
| 14.6 | % |
| 1.9 | % |
| 26.6 | % |
| 43.9 | % |
| 9.7 | % |
|
| 14.0 | % |
| 2.1 | % |
| 30.8 | % |
| 45.7 | % |
| 11.0 | % |
Non-GAAP expense as a percentage of revenue |
| 13.2 | % |
| 1.8 | % |
| 19.8 | % |
| 40.1 | % |
| 7.3 | % |
|
| 12.7 | % |
| 1.9 | % |
| 21.9 | % |
| 41.2 | % |
| 8.2 | % |
Reconciliation of non-GAAP subscription margin | |||||||
(in thousands, except percentages) | |||||||
|
| Three Months Ended March 31, |
| ||||
|
| 2026 |
| 2025 |
| ||
GAAP subscription margin |
| $ | 733,540 |
| $ | 598,498 |
|
Stock-based compensation |
|
| 10,421 |
|
| 7,697 |
|
Amortization of acquired intangible assets |
|
| 2,382 |
|
| 2,178 |
|
Non-GAAP subscription margin |
| $ | 746,343 |
| $ | 608,373 |
|
|
|
|
|
|
| ||
GAAP subscription margin percentage |
|
| 85.1 | % |
| 85.7 | % |
Non-GAAP subscription margin percentage |
|
| 86.6 | % |
| 87.1 | % |
Reconciliation of free cash flow | |||||||
(in thousands) | |||||||
|
| Three Months Ended March 31, |
| ||||
|
| 2026 |
| 2025 |
| ||
GAAP net cash and cash equivalents provided by operating activities |
| $ | 198,825 |
| $ | 161,570 |
|
Purchases of property and equipment |
|
| (15,422 | ) |
| (13,345 | ) |
Capitalization of software development costs |
|
| (34,339 | ) |
| (30,421 | ) |
Payment of restructuring charges |
|
| 4,665 |
|
| 4,505 |
|
Non-GAAP free cash flow |
| $ | 153,729 |
| $ | 122,309 |
|
Supplemental disclosures: |
|
|
|
|
| ||
Holdback payments to key employees related to acquisitions(1) |
| $ | 4,147 |
| $ — |
| |
(1) Includes payments related to employee holdbacks pertaining to our acquisitions. The related expenses are recognized within operating expenses over the required service periods. | |||||||
Reconciliation of operating cash flow | ||||||||
(in thousands) | ||||||||
|
| Three Months Ended March 31, |
| |||||
|
| 2026 |
| 2025 |
| |||
GAAP net cash and cash equivalents provided by operating activities |
| $ | 198,825 |
| $ | 161,570 |
| |
Payment of restructuring charges |
|
| 4,665 |
|
| 4,505 |
| |
Non-GAAP operating cash flow |
| $ | 203,490 |
| $ | 166,075 |
| |
Supplemental disclosures: |
|
|
|
|
| |||
Holdback payments to key employees related to acquisitions(1) |
| $ | 4,147 |
| $ — |
| ||
(1) Includes payments related to employee holdbacks pertaining to our acquisitions. The related expenses are recognized within operating expenses over the required service periods. | ||||||||
Reconciliation of forecasted non-GAAP operating income | |||||||
(in thousands, except percentages) | |||||||
|
Three Months Ended
|
|
|
Year Ended
|
| ||
GAAP operating income range | $21,672-$22,672 |
|
| $193,024-$197,024 |
| ||
Stock-based compensation | 141,011 |
|
| 527,077 |
| ||
Amortization of acquired intangible assets | 3,111 |
|
| 12,504 |
| ||
Acquisition related expense | 6,198 |
|
| 25,349 |
| ||
Restructuring charges | 1,008 |
|
| 4,046 |
| ||
Non-GAAP operating income range | $173,000-$174,000 |
|
| $762,000-$766,000 |
| ||
Reconciliation of forecasted non-GAAP net income and non-GAAP net income per share | |||||||
(in thousands, except per share amounts) | |||||||
|
|
|
|
|
| ||
|
Three Months Ended
|
|
|
Year Ended
|
| ||
GAAP net income range | $25,371-$26,371 |
|
| $192,129-$196,629 |
| ||
Stock-based compensation | 141,011 |
|
| 527,077 |
| ||
Amortization of acquired intangible assets | 3,111 |
|
| 12,504 |
| ||
Acquisition related expense | 6,198 |
|
| 25,349 |
| ||
Restructuring charges | 1,008 |
|
| 4,046 |
| ||
Impairment of strategic investments, net | — |
|
| 166 |
| ||
Income tax effects of non-GAAP items | (22,699) |
|
| (85,371) |
| ||
Non-GAAP net income range | $154,000-$155,000 |
|
| $675,900-$680,400 |
| ||
|
|
|
|
|
| ||
GAAP net income per basic share | $0.50-$0.52 |
|
| $3.72-$3.81 |
| ||
GAAP net income per diluted share | $0.50-$0.51 |
|
| $3.71-$3.79 |
| ||
Non-GAAP net income per diluted share | $3.00-$3.02 |
|
| $13.04-$13.12 |
| ||
|
|
|
|
|
| ||
|
|
|
|
|
| ||
Weighted average common shares used in computing GAAP
| 51,146 |
|
| 51,650 |
| ||
Weighted average common shares used in computing GAAP
| 51,248 |
|
| 51,847 |
| ||
HubSpot’s estimates of stock-based compensation, amortization of acquired intangible assets, interest expense for amortization of one-time upfront debt issuance costs, restructuring charges, and income tax effects of non-GAAP items assume, among other things, the occurrence of no additional acquisitions, changes in value of strategic investments, and no further revisions to stock-based compensation and related expenses.
Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. In this release, HubSpot’s non-GAAP operating income, operating margin, subscription margin, expense, expense as a percentage of revenue, net income, operating and free cash flow are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of operations.
Calculated billings is defined as total revenue recognized in a period plus the sequential change in total deferred revenue in the corresponding period. Non-GAAP operating cash flow is defined as cash and cash equivalents provided by or used in operating activities plus payment of restructuring charges.
Contacts
Investor Relations Contact:
investors@hubspot.com
Media Contact:
media@hubspot.com
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