HubSpot (HUBS) Stock Forecast & Price Target

HubSpot has demonstrated strong financial performance, highlighted by a sequential increase in net revenue retention, which rose by 200 basis points to 104%, primarily attributed to a new seat-based pricing model. The company reported significant gross margin expansion, reaching 86.7%, and a substantial increase in free cash flow to $158.5 million, reflecting a 22.5% margin, up from the previous year's figures. Additionally, international revenue growth of 20% year-over-year in constant currency and a notable rise in the number of Pro+ customers utilizing multiple Hubs further solidify HubSpot's positive outlook.

HubSpot's outlook is negatively impacted by anticipated headwinds, including a shrinking install base and notable foreign exchange (FX) challenges, with revenue guidance reflecting a 2-point FX detriment and an additional 1-point reduction from Clearbit churn dynamics. The average subscription revenue per customer (ASRPC) showed a slight decline of 1% year-over-year in constant currency, signaling potential difficulties in maintaining customer value. Although net revenue retention (NRR) is expected to improve moderately over the year, the overall guidance suggests lower topline estimates that could hinder future growth projections.