HubSpot (HUBS) is reporting their Q4 and full-year 2023 financial results today, after market close.

Financial Highlights from Q3 (Nov 8, 2023):

Revenue

• Total revenue was $557.6 million, up 26% compared to Q3’22.
• Subscription revenue was $545.8 million, up 25% compared to Q3’22.
• Professional services and other revenue was $11.7 million, up 31% compared to Q3’22.

Operating Income (Loss)

• GAAP operating margin was (3.7%), compared to (7.3%) in Q3’22.
• Non-GAAP operating margin was 16.2%, compared to 9.2% in Q3’22.
• GAAP operating loss was ($20.4) million, compared to ($32.2) million in Q3’22.
• Non-GAAP operating income was $90.2 million, compared to $40.7 million in Q3’22.

Net Income (Loss)

• GAAP net loss was ($5.5) million, or ($0.11) per basic and diluted share, compared to ($31.4) million, or ($0.65) per basic and diluted share in Q3’22.
• Non-GAAP net income was $83.4 million, or $1.67 per basic and $1.59 per diluted share, compared to $35.1 million, or $0.73 per basic and $0.69 per diluted share in Q3’22.
• Weighted average basic and diluted shares outstanding for GAAP net loss per share was 50.1 million, compared to 48.1 million basic and diluted shares in Q3’22.
• Weighted average basic and diluted shares outstanding for non-GAAP net income per share was 50.1 million and 52.5 million respectively, compared to 48.1 million and 51.0 million, respectively in Q3’22.

Business Outlook for Q4
Based on information available as of November 8, 2023, HubSpot is issuing guidance for the fourth quarter of 2023 and full year 2023 as indicated below.

Fourth Quarter 2023:

• Total revenue is expected to be in the range of $556 million to $558 million.
  • Favorable foreign exchange rates are expected to be a 2 point tailwind to fourth quarter 2023 revenue growth(1).
• Non-GAAP operating income is expected to be in the range of $85 million to $86 million(2).
• Non-GAAP net income per common share is expected to be in the range of $1.53 to $1.55. This assumes approximately 52.7 million weighted average diluted shares outstanding.

Full Year 2023:

• Total revenue is expected to be in the range of $2.144 billion to $2.146 billion.
  • Foreign exchange rates are expected to have a neutral impact on full year 2023 revenue growth(1).
• Non-GAAP operating income is expected to be in the range of $317 million to $318 million(2).
• Non-GAAP net income per common share is expected to be in the range of $5.66 to $5.68. This assumes approximately 52.2 million weighted average diluted shares outstanding.