HubSpot, Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. Total revenue for Q3 2024 reached $669.7 million, marking a 20% increase from $557.6 million in Q3 2023. For the nine-month period, revenue totaled $1.9 billion, up 21% from $1.6 billion in the same period last year. Subscription revenue, which constitutes 98% of total revenue, also saw a substantial rise, increasing to $654.7 million in Q3 2024 from $545.8 million in Q3 2023.

Gross profit for Q3 2024 was $570.4 million, a 21% increase compared to $471.9 million in the prior year. The company reported a loss from operations of $(9.6) million for Q3 2024, an improvement from $(18.6) million in Q3 2023. Net income for the quarter was $8.1 million, a turnaround from a net loss of $(3.6) million in Q3 2023. For the nine months ended September 30, 2024, HubSpot reported a net loss of $(0.4) million, significantly improved from $(152.1) million in the same period of 2023.

As of September 30, 2024, HubSpot's total current assets increased to $2.4 billion from $1.9 billion at the end of 2023, with cash and cash equivalents rising to $410.1 million. Total liabilities also increased, with current liabilities reaching $1.5 billion, up from $942.0 million at the end of 2023. Stockholders' equity improved to $1.8 billion, compared to $1.3 billion at the end of the previous year.

Strategically, HubSpot made notable acquisitions, including Cacheflow Inc. for approximately $65 million, aimed at enhancing its B2B subscription billing management capabilities. This follows the acquisition of Clearbit in December 2023, which contributed to the development of Breeze Intelligence, a B2B-focused data enrichment tool. The company continues to invest in research and development, with expenses for Q3 2024 rising 22% to $191.2 million, reflecting its commitment to innovation.

Despite these advancements, HubSpot does not anticipate profitability in the next 12 months, citing ongoing investments in growth and the potential impact of macroeconomic conditions on its operations. The company also reported restructuring charges of $1.0 million for Q3 2024, a significant reduction from $93.3 million in the same period last year, indicating a shift in its operational strategy following a comprehensive restructuring plan initiated in January 2023.

About HUBSPOT INC

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