HubSpot (HUBS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 20.8%–21% year-over-year to $703.2M; full-year revenue rose 21%–21.1% to $2.63B.

• Operating profit for Q4 2024 reached $133.1M (34% YoY growth), with a margin of 18.9%; full-year operating profit was $460.2M (36.4% YoY growth), margin 17.5%.

• Customer base expanded to 248,000 by Q4 2024, with over 9,800 net additions in Q4 and a 26% CAGR since Q1 2019.

• AI embedded across all hubs, with Content Hub and Service Hub showing significant AI-driven growth; company reaffirmed its AI-first strategy.

• Free cash flow for Q4 2024 was $163.0M (96.5% YoY growth); full-year free cash flow was $488.1M (66.9% YoY growth).

Financial highlights

• Q4 subscription revenue was $687.3M, up 20.5%–21% year-over-year; professional services revenue was $15.9M, up 35.6%–36%.

• Calculated billings in Q4 2024 were $767.6M, up 16% as-reported and 21% in constant currency.

• International revenue represented 47% of total revenue, growing 20% in constant currency and 23% as reported.

• Cash and marketable securities at year-end: $2.2B, with a 19% free cash flow margin.

• Q4 non-GAAP net income was $124.9M ($2.32/share diluted), up from $93.3M ($1.77/share) in Q4'23.

Outlook and guidance

• FY2025 revenue expected between $2.985B–$2.995B, up 14% as reported and 16% in constant currency.

• Non-GAAP operating profit for 2025 projected at $543M–$547M (18% margin); EPS $9.11–$9.19.

• Q1 2025 revenue guidance: $697M–$699M, up 13%–15% year-over-year.

• Net revenue retention expected to rise in 2025, driven by seat-based pricing model.

• FX expected to be a 200 bps headwind to 2025 revenue growth and 50 bps to operating margin.