HubSpot (HUBS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 20–21% year-over-year to $637.2–$648 million, with customer count rising 23% to 228,054 and strong multi-hub adoption, especially at the low end.

• Product innovation, including Service Hub and Content Hub launches, and AI-powered features drove significant customer wins and engagement.

• Net loss narrowed to $14.4 million (GAAP), while non-GAAP net income reached $103.5 million ($1.94 per diluted share).

• Free cash flow for Q2 was $92 million (14% margin); trailing twelve-month FCF was $344 million.

• Cash and investments totaled $1.9 billion at quarter end.

Financial highlights

• Q2 2024 revenue: $637.2–$648 million, up 20–21% year-over-year; subscription revenue up 20%.

• Non-GAAP operating margin improved to 17.2% from 14.5% year-over-year; GAAP operating margin was -3.8%.

• Average subscription revenue per customer was $11,200–$11,215, down 2% year-over-year.

• Gross margin was 85–86% in Q2 2024, consistent with prior quarters.

• Net revenue retention stable at 102%; gross retention in the high 80s.

Outlook and guidance

• Q3 2024 revenue expected at $646–$647 million, up 16% year-over-year at midpoint.

• FY 2024 revenue expected at $2.567–$2.573 billion; non-GAAP operating profit $437–$441 million; EPS $7.64–$7.70.

• CapEx as a percentage of revenue expected at 4–5%; free cash flow for 2024 projected at $380 million.

• Guidance assumes persistent but not worsening macroeconomic challenges and neutral FX impact.