HUBS Q4 2021 Earnings

Call Details

• Call Title: HubSpot Q4 2021 Earnings Call
• Date: 2022-02-10 21:30:00 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)

Call Summary

Financial Performance

• Fourth quarter revenue grew 47% year-over-year in constant currency and as-reported basis.
• Full year 2021 revenue grew 45% year-over-year in constant currency and 47% as-reported.
• Fourth quarter subscription revenue grew 47% year-over-year and services and other revenue grew 38% year-over-year.
• Net income in Q4 was $30M, or $0.58 per fully diluted share, and net income for the full year was $92M, or $1.82 per fully diluted share.
• Free cash flow was $78M in Q4, equal to 21% of revenue, and $203M for the full year, equal to 16% of revenue.
• Cash and marketable securities totaled $1.4B at the end of December.
• Deferred revenue at year-end was $435M, a 37% increase year-over-year.
• Calculated billings were $428M in Q4, growing 43% year-on-year in constant currency and 38% as-reported.
• Headcount totaled nearly 5,900 employees at year-end, up 40% year-over-year.

Guidance

• Q1 2022 revenue is expected to be $381M to $383M, which implies up 36% year-over-year at the midpoint.
• Foreign exchange is expected to be approximately a four-point headwind to as-reported revenue growth in Q1 2022.
• Q1 2022 non-GAAP operating income is expected to be $30M to $31M.
• Q1 2022 non-GAAP diluted net income per share is expected to be $0.46 to $0.48, assuming 51.3M fully diluted shares.
• Full year 2022 revenue is expected to be $1.72B to $1.73B, which implies up 33% year-over-year at the midpoint.
• Foreign exchange is expected to be approximately a three-point headwind to as-reported revenue growth for full year 2022.
• Full year 2022 non-GAAP operating income is expected to be $153M to $157M and non-GAAP diluted EPS is expected to be $2.34 to $2.42, assuming 51.5M fully diluted shares.
• The company expects free cash flow of about $240M in 2022 with seasonally stronger FCF in Q1 and Q4.
• CapEx is expected to be roughly 6% of revenue for 2022.
• The company adopted a new convertible debt accounting standard that adds approximately 1.0M shares to Q1 fully diluted share count and 850k shares to full year share count, and that change is embedded in guidance.