HUBS Q1 2022 Earnings

Call Details

• Call Title: HubSpot Q1 2022 Earnings Call
• Date: May 5, 2022 at 8:30 PM UTC
• Management Team:
  • Yamini Rangan (Chief Executive Officer)
  • Dharmesh Shah (Co-founder and Chief Technology Officer)
  • Kate Bueker (Chief Financial Officer)
  • Chuck MacGlashing (Head of Investor Relations)
  • Rob Giglio (Chief Customer Officer)

Call Summary

Financial Performance

• Total revenue grew 44% year over year in constant currency and 41% as reported in Q1 2022.
• Subscription revenue grew 42% year over year while services and other revenue decreased 4% as reported in Q1.
• Average subscription revenue per customer grew 12% year over year to just over $11,000 in Q1.
• Deferred revenue was $463M at the end of March, up 36% year over year.
• Calculated billings were $423M in Q1, up 41% year over year in constant currency and 39% as reported.
• Non-GAAP gross margin was 82% in Q1 and non-GAAP operating margin was 9% in Q1.
• GAAP net income in Q1 was $28M, or $0.54 per fully diluted share.
• Free cash flow in Q1 was $63M, representing 16% of revenue, and cash and marketable securities totaled $1.4B at quarter end.

Guidance

• Q2 2022 as-reported revenue is expected to be $409M to $410M, up 32% year over year at the midpoint.
• Q2 2022 non-GAAP operating income is expected to be $27M to $28M and non-GAAP diluted net income per share is expected to be $0.42 to $0.44, assuming 51.2M fully diluted shares.
• Full-year 2022 as-reported revenue is expected to be $1.722 to $1.728B, up 33% year over year at the midpoint.
• Full-year 2022 non-GAAP operating income is expected to be $152M to $154M and non-GAAP diluted net income per share is expected to be $2.40 to $2.42, assuming 51.5M fully diluted shares.
• At current spot rates, FX is expected to create a 5-point headwind to full-year as-reported revenue growth, up from a prior 3-point headwind and representing an incremental $30M revenue impact versus prior forecast.
• The company expects FX to create approximately a 0.5 percentage point headwind to full-year non-GAAP operating margin.