Hubspot (HUBS) FY2023 results: revenue $2.2 billion, up 25.4% on the year

Hubspot Inc. (HUBS) reported revenue of $2.2 billion for fiscal 2023, the year ended 31 December 2023, up 25.4% on the year before. Net income was -$165 million, and diluted earnings per share $-3.30. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2024.

Revenue

$2.2 billion

+25.4% on the year

FY2016FY2023

Operating margin

-9.3%

-5.9% a year earlier

FY2016FY2023

Net income

-$165 million

FY2016FY2023

Diluted EPS

-$3.30

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,170	1,731	1,301	+25.4%
Cost of revenue	338	308	259	+9.9%
Gross profit	1,832	1,423	1,042	+28.7%
Gross margin	84.4%	82.2%	80.1%
Research and development	618	442	302	+39.8%
Operating income	-201	-103	-54.8
Operating margin	-9.3%	-5.9%	-4.2%
Interest expense	3.8	3.8	30.3	+1.0%
Pre-tax income	-151	-98.5	-73.8
Income tax	13.9	8.9	4.0	+56.7%
Net income	-165	-107	-77.8
Net margin	-7.6%	-6.2%	-6.0%
Diluted EPS	-$3.30	-$2.23	-$1.66

$ million except per share.

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.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	351	273	239	+28.5%
Capital expenditure	33.7	37.4	28.7	-9.9%
Free cash flow	317	236	210	+34.6%
Free cash flow margin	14.6%	13.6%	16.1%
Cash from investing	-335	-320	-180
Cash from financing	37.0	7.4	-51.5	+398.3%
Depreciation and amortisation	72.7	58.1	45.2	+25.0%
Share-based compensation	432	276	167	+56.7%
Diluted shares, weighted	50m	48m	47m	+3.8%
Shares outstanding at period end	50m	49m	47m	+2.5%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,334	995	871	+34.1%
Debt	456	454	403	+0.4%
Operating lease liabilities	297	316	284	-6.2%
Other liabilities	984	780	617	+26.2%
Total liabilities and equity	3,071	2,545	2,175	+20.7%
Fixed assets	103	105	96.1	-1.8%
Goodwill	174	46.2	47.1	+275.9%
Intangible assets	42.3	17.4	10.6	+142.6%
Investments	1,326	1,194	996	+11.0%
Cash and equivalents	388	331	377	+17.2%
Receivables	295	227	157	+30.2%
Other assets	743	624	491	+19.1%
Total assets	3,071	2,545	2,175	+20.7%

10-K for the year ended 31 December 2023, filed 14 February 2024: the filing.