Hubspot (HUBS) Q4 FY2023 earnings: revenue $582 million, up 23.9% on the year

Hubspot Inc. (HUBS) reported revenue of $582 million for Q4 FY2023, the quarter ended 31 December 2023, up 23.9% on the same quarter a year earlier. Net income was -$14 million, and diluted earnings per share $-0.27. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2024.

Revenue$582 millionup 23.9%

Net income-$14 million

Diluted EPS$-0.27

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	582	558	n/a	n/a
Cost of revenue	88.6	85.6	n/a	n/a
Gross profit	493	472	n/a	n/a
Gross margin	84.8%	84.6%	n/a
Research and development	163	157	n/a	n/a
Operating income	-24.3	-18.6	n/a	n/a
Operating margin	-4.2%	-3.3%	n/a
Interest expense	1.0	0.9	n/a	n/a
Pre-tax income	-9.2	-5.0	n/a	n/a
Income tax	4.4	-1.4	n/a	n/a
Net income	-13.6	-3.6	n/a	n/a
Net margin	-2.3%	-0.6%	n/a
Diluted EPS	-$0.27	-$0.11	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	104	89.0	n/a	n/a
Capital expenditure	8.7	10.8	n/a	n/a
Free cash flow	95.6	78.2	n/a	n/a
Free cash flow margin	16.4%	14.0%	n/a
Cash from investing	-266	-15.0	n/a	n/a
Cash from financing	6.6	9.9	n/a	n/a
Depreciation and amortisation	19.2	7.7	n/a	n/a
Share-based compensation	114	108	n/a	n/a
Diluted shares, weighted	50m	50m	n/a	n/a
Shares outstanding at period end	50m	50m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	1,320	1,186	n/a	n/a
Debt	456	n/a	n/a	n/a
Operating lease liabilities	297	302	n/a	n/a
Other liabilities	999	1,328	n/a	n/a
Total liabilities and equity	3,071	2,816	n/a	n/a
Fixed assets	103	105	n/a	n/a
Goodwill	174	46.0	n/a	n/a
Intangible assets	42.3	13.4	n/a	n/a
Investments	1,326	1,212	n/a	n/a
Cash and equivalents	388	536	n/a	n/a
Receivables	295	212	n/a	n/a
Other assets	743	691	n/a	n/a
Total assets	3,071	2,816	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023 †	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	558	582	617	637	670	703	714	761	810	847	881	912
Cost of revenue	85.6	88.6	95.1	95.5	99.3	103	115	122	134	138	146	161
Gross profit	472	493	522	542	570	600	599	639	676	709	735	751
Gross margin	85%	85%	85%	85%	85%	85%	84%	84%	84%	84%	83%	82%
R&D	157	163	176	198	191	214	220	237	228	221	234	226
Operating income	-18.6	-24.3	-23.2	-23.9	-9.6	-10.8	-27.5	-24.6	11.2	48.2	27.9	43.3
Operating margin	-3%	-4%	-4%	-4%	-1%	-2%	-4%	-3%	1%	6%	3%	5%
Interest expense	0.9	1.0	0.9	0.9	0.9	0.9	0.6	0.2	0.0	0.0	0.2	0.4
Pre-tax income	-5.0	-9.2	7.7	-2.7	10.6	13.0	-9.9	-5.5	23.1	61.7	39.3	49.6
Tax rate	n/a	n/a	23%	n/a	23%	62%	n/a	n/a	29%	12%	17%	13%
Net income	-3.6	-13.6	5.9	-14.4	8.1	5.0	-21.8	-3.3	16.5	54.4	32.6	43.3
Net margin	-1%	-2%	1%	-2%	1%	1%	-3%	-0%	2%	6%	4%	5%
Diluted EPS	-$0.11	-$0.27	$0.12	-$0.28	$0.16	$0.09	-$0.42	-$0.06	$0.31	$1.04	$0.62	$0.86
Operating cash flow	89.0	104	127	118	160	194	162	164	187	247	199	223
Capital expenditure	10.8	8.7	5.9	8.2	11.1	12.7	13.3	16.0	10.3	13.4	15.4	19.7
Free cash flow	78.2	95.6	121	110	148	181	148	148	177	234	183	203
Buybacks	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	360	n/a	207	536
Shares outstanding	50m	50m	51m	51m	52m	52m	52m	53m	52m	53m	52m	50m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 14 February 2024, accession 0000950170-24-015277: the filing on EDGAR. All of Hubspot Inc.'s filings: EDGAR company page.

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