Q3 2024 HubSpot Inc Earnings Call Transcript
Key Points
- HubSpot Inc (HUBS) reported a 20% year-over-year revenue growth in constant currency for Q3 2024.
- The company achieved a significant operating margin growth, expanding by over 200 basis points year-over-year to reach 19%.
- HubSpot Inc (HUBS) added over 10,000 net new customers in Q3, bringing the total to 238,000 customers globally.
- The company's AI innovations, particularly in the Content Hub, have driven rapid growth and increased customer adoption.
- HubSpot Inc (HUBS) successfully launched several AI features at their INBOUND conference, which were well-received and increased AI awareness and usage among customers.
- Average subscription revenue per customer decreased by 2% year-over-year, reflecting a headwind from lower initial price points.
- The company continues to face a value-conscious buying environment, which is expected to persist through the end of the year.
- Net revenue retention held flat sequentially, with continued headwinds across various upgrade motions.
- Despite strong customer growth, the company is experiencing pressure on addition upgrades, cross-sell, and discount upgrades.
- HubSpot Inc (HUBS) anticipates a slight headwind to expenses from the recent acquisition of Cash Flow.
Good afternoon, and welcome to the HubSpot's third-quarter 2024 earnings call. My name is Liz, and I will be your operator today. (Operator Instructions)
I would now like to hand the conference over to Senior Director of Investor Relations, Ryan Burkart. Please go ahead.
Thanks, operator. Good afternoon, and welcome to HubSpot's third-quarter 2024 earnings conference call. Today, we'll be discussing the results announced in the press release that was issued after the market closed. With me on the call this afternoon is Yamini Rangan, our Chief Executive Officer; Dharmesh Shah, our Co-Founder and CTO; and Kate Bueker, our Chief Financial Officer. Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release.
During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934
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