What is HubSpot Net Worth: Revenue Growth and Financial Performance Breakdown in 2024

As we delve into HubSpot net worth, it’s clear that their financial growth in 2024 is a result of key factors driving revenue.

HubSpot, known for its CRM platform, has experienced significant growth, especially through its subscription services.

In this article, we’ll explore HubSpot’s financial performance and how it stacks up against other major players. Brought to you by Ando Money.

Quick Facts:

What is the Net Worth/Market Cap of HubSpot in 2024?

HubSpot’s net worth as of October 2024 is an impressive $27.47 billion. This places the company in a significant position within the tech and CRM industries.

For comparison, HubSpot’s market cap makes it one of the leading players in the customer relationship management space, competing alongside well-known companies. Some of the other related businesses include:

• Salesforce
• Microsoft Dynamics 365
• Zoho CRM
• Oracle
• Freshworks
• Zendesk
• Pipedrive
• SugarCRM
• Monday.com
• Intercom

Interested in exploring more about financially successful companies? Check out our list of top companies and see how they compare.

HubSpot Financial Performance Overview

Revenue Breakdown by Key Business Segments

HubSpot’s total revenue for the second quarter of 2024 was $637.2 million, up by 20% from Q2 2023.

The majority of this income is derived from its subscription services, contributing $623.8 million of the total.

Professional services, although a smaller portion, still account for $13.5 million, which shows an 18% year-over-year increase.

Key Factors Driving Revenue Growth

HubSpot’s revenue growth can be attributed to a few essential factors.

Firstly, its expanding customer base, which increased by 23% compared to the previous year, brought the total number of customers to 228,054.

This substantial growth highlights the effectiveness of its CRM tools and solutions.

Another critical driver of revenue is the average subscription revenue per customer (ASRPC), which for Q2 2024 stands at $11,215.

While this represents a slight decrease of 2%, it still reflects significant earning power from HubSpot’s high-value subscription services.

Operating Income and Profitability

When we examine HubSpot’s profitability, the company reported a GAAP operating loss of $23.9 million in Q2 2024.

However, the non-GAAP operating income shows a much stronger performance, coming in at $109.3 million, up from $76.6 million the previous year.

This discrepancy is due to non-cash expenses like stock-based compensation and restructuring charges.

HubSpot’s GAAP operating margin improved to (3.8%), a significant recovery compared to the (22.0%) margin in Q2 2023.

The non-GAAP operating margin, which excludes non-cash expenses, stood at 17.2%, reflecting a healthy profit structure.

Cash Flow and Liquidity

HubSpot’s financial health is also supported by its strong cash flow.

In Q2 2024, the company generated $117.8 million in cash from operations, up from $76.5 million in the previous year.

This increase in cash flow provides HubSpot with the flexibility to invest in further innovation and expansion.

Additionally, HubSpot’s non-GAAP free cash flow was $92.1 million, compared to $59.6 million in Q2 2023, signaling robust financial stability.

Financial Performance Comparison Over Time

Comparing HubSpot’s financials from 2023 to 2024, we observe a consistent upward trajectory.

Revenue in Q2 2024 increased by 20% compared to Q2 2023, and non-GAAP net income also saw a notable improvement from $71.8 million in Q2 2023 to $103.5 million in Q2 2024.

This historical growth trend is expected to continue, with HubSpot projecting its full-year revenue for 2024 to fall between $2.567 billion and $2.573 billion.

HubSpot’s long-term financial outlook is optimistic, driven by product innovation and an expanding customer base.

Key Financial Metrics and Assets Overview

HubSpot’s total assets as of June 2024 amount to $3.36 billion, with liabilities totaling $1.75 billion.

These assets are crucial to sustaining HubSpot’s growth, particularly its investments in software development and technological infrastructure.

The company’s equity stands strong at $1.60 billion, reinforcing HubSpot’s long-term financial stability.

Role of Leadership and Innovation in Financial Success

Its leadership, particularly under Yamini Rangan, has played a pivotal role in steering the company’s growth.

Her focus on expanding HubSpot’s platform and delivering consistent innovation has directly impacted the company’s revenue growth.

Additionally, HubSpot’s ability to continually evolve its CRM solutions has enabled it to attract a broader customer base.

This innovation is one of the main reasons behind its solid financial performance in recent years.

FAQs about HubSpot

What drives HubSpot’s revenue growth?

Its revenue growth is primarily driven by its expanding customer base and high subscription renewal rates.

Its subscription revenue and innovative CRM solutions play a key role in increasing customer satisfaction.

How does HubSpot’s operating income compare to its revenue?

While it posted a GAAP operating loss of $23.9 million in Q2 2024, its non-GAAP operating income was $109.3 million, demonstrating a strong core financial performance when excluding non-cash items.

What is HubSpot’s cash flow situation?

It generated $117.8 million in cash from operations in Q2 2024. Its free cash flow for the same period was $92.1 million, showcasing its robust liquidity and ability to finance future growth.

What is HubSpot’s customer base size?

As of Q2 2024, HubSpot has a total of 228,054 customers, a 23% increase compared to the previous year. This customer growth has been a significant factor in its revenue expansion.

Conclusion

HubSpot’s financial performance in 2024 highlights a company on the rise, driven by solid leadership and innovative solutions.

Curious to learn more about other financial powerhouses? Visit Ando Money for more insights!