HubSpot (HUBS) Stock Forecast & Price Target

HubSpot's stock outlook is supported by a notable increase in net revenue retention, which improved by 200 basis points sequentially to 104%, aided by a new seat-based pricing model that enhances customer value. The company also demonstrated strong financial health with gross margins expanding to 86.7% and a significant increase in free cash flow to $158.5 million, reflecting a 22.5% margin. Additionally, international revenue growth of 20% year-over-year and increased engagement, with over 35% of Pro+ customers now utilizing four or more Hubs, underscores HubSpot's expanding market presence and customer satisfaction.

HubSpot's recent financial performance indicates a negative outlook driven by several fundamental concerns. The anticipated decline in the install base is expected to negatively impact revenue, with FY25 guidance reflecting a substantial foreign exchange headwind of approximately 2 percentage points, alongside a 1 percentage point reduction due to Clearbit customer churn. Additionally, the flat growth in average subscription revenue per customer, coupled with a seasonal drop in net revenue retention rates, further illustrates challenges in maintaining robust revenue growth moving forward.