On Friday, shares of customer relationship management (CRM) platform HubSpot (NYSE:HUBS) traded sharply higher, surging as much as 11.5%, driven by relatively healthy fourth-quarter 2021 results.
Quarterly revenues for the company increased 46.5% year-over-year to $369.3 million, surpassing consensus estimates of $357.47 million.
Some investors have feared that the influx of customers that HubSpot has seen might slow as the rush of traffic created by the COVID-19 pandemic started to ebb. However, the company's most recent metrics didn't confirm those fears as Non-GAAP net income rose to $92.5 million while HubSpot's customer metrics climbed to 135,442, up 30% year over year.
Subscription revenues were up 46.8% year-over-year and accounted for over 97% of the total quarterly revenue, with quarterly operating margin improving from 9.8% in the previous year to 10.3%.
Investors were also pleased with HubSpot's guidance which called for first-quarter 2022 revenues in the range of $381 million to $383 million and revenues between $1.72 billion and $1.73 billion for the full year.
Adjusted earnings of $2.34 to $2.42 per share would confirm that HubSpot still has the power to keep expanding over the coming year and beyond.
"I am incredibly proud of how the HubSpot team was able to adapt and execute in 2021 to deliver a truly exceptional year... 2022 will be a year of sustained focus and consistency as we continue to invest in those priorities." - CEO Yamini Rangan, HubSpot
Last week, PartnerStack announced it is now listed in the HubSpot App Marketplace. PartnerStack offers a seamless integration with HubSpot using a simple drag-and-drop editor and allows for data sharing and mapping.
PartnerStack is the only partner platform specifically designed for B2B SaaS channel teams that enables small and medium-sized businesses to build and scale affiliate, referral, and reseller partner programs quickly and sustainably.
PRICE TARGET: Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average HubSpot price target of $752.55 implies an upside potential of 40.8% from current levels. Over the past year, shares have gained 23.8%.
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