HubSpot’s Earnings Call Highlights Growth and AI Advances

HubSpot, Inc. ((HUBS)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for HubSpot, Inc. revealed a generally positive sentiment, with strong performance metrics and growth drivers highlighted. The company demonstrated impressive revenue growth, an expanding customer base, and significant advancements in AI innovations. However, challenges such as flat net revenue retention and slightly lower billing growth were also noted. Overall, the positive aspects and growth outlooks slightly outweighed the challenges.

Revenue Growth

HubSpot’s Q3 2025 revenue grew by 18.4% year-over-year in constant currency, reaching $810 million. Subscription revenue saw an even more impressive increase, growing 21% year-over-year, underscoring the company’s strong market position and effective growth strategies.

Operating Margin

The company achieved a solid operating margin of 20%, reflecting a well-maintained balance between growth and profitability. This demonstrates HubSpot’s ability to manage its expenses while continuing to expand its business.

Customer Base Expansion

HubSpot increased its total customer base by 10,900 in the quarter, bringing the global customer base to nearly 279,000, marking a 17% year-over-year growth. This expansion highlights the company’s successful efforts in attracting and retaining customers.

Upmarket Momentum

Deals over $5,000 in monthly recurring revenue grew by 35% year-over-year, indicating strong traction in the upmarket segment. This growth reflects HubSpot’s ability to cater to larger clients and expand its market reach.

AI Innovations

At the INBOUND conference, HubSpot launched over 200 new updates and products, showcasing its robust AI strategy and adoption. These innovations are expected to drive further growth and enhance customer satisfaction.

International Growth

International revenue growth was 20% in constant currency and 25% as reported, representing 49% of total revenue. This indicates HubSpot’s successful expansion into international markets and its ability to capitalize on global opportunities.

AI Features Impact

Customers using embedded AI features in Marketing Hub experienced over 50% higher lead conversion, while Sales Hub users won nearly 10% more deals. These statistics highlight the tangible benefits of HubSpot’s AI innovations for its customers.

Net Revenue Retention

Net revenue retention remained flat sequentially at 103%, with expectations for improvement in Q4. This suggests that while retention is stable, there is room for growth in customer engagement and upselling.

Billing Growth

Calculated billings growth in Q3 was 19% year-over-year in constant currency, slightly lower than the previous quarter. This indicates a minor slowdown in billing growth, which the company will need to address moving forward.

Forward-Looking Guidance

For Q4, HubSpot expects total as-reported revenue to be between $828 million and $830 million, representing a year-over-year growth of 16% in constant currency and 18% as reported. The non-GAAP operating profit is anticipated to be between $183 million and $184 million, translating to a 22% operating profit margin. For the full year 2025, revenue is expected to range between $3.113 billion and $3.115 billion, reflecting an 18% growth in constant currency and 19% as reported. The non-GAAP operating profit for the year is forecasted to be between $574 million and $575 million, with an operating profit margin of 18%.

In summary, HubSpot’s earnings call painted a picture of a company that is performing well, with strong revenue growth, an expanding customer base, and significant advancements in AI. While there are challenges to address, such as flat net revenue retention and slightly lower billing growth, the overall sentiment remains positive. The forward-looking guidance suggests continued growth and profitability, making HubSpot a company to watch in the coming quarters.