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HubSpot Inc. (HUBS-2.95%) has submitted its annual report on Form 10-K for the fiscal year ended December 31, 2024 filing.
The filing details HubSpot's financial performance, with total revenue increasing to $2.6 billion in 2024 from $2.2 billion in 2023. The company reported a net income of $4.6 million for 2024, compared to a net loss of $164.5 million in 2023.
Subscription revenue, which accounts for the majority of HubSpot's income, rose to $2.57 billion, driven by an increase in the number of customers from 205,091 to 247,939. The average subscription revenue per customer slightly decreased to $11,343.
Professional services and other revenue also saw growth, increasing to $58 million, primarily due to an increase in other revenue streams, including Commerce Hub.
HubSpot's cost of revenue was $393 million, resulting in a gross profit of $2.23 billion and a gross margin of 85%. Operating expenses totaled $2.3 billion, with significant investments in research and development and sales and marketing.
The company reported interest income of $82.7 million, while interest expense related to its convertible senior notes was $3.7 million.
HubSpot's cash and cash equivalents increased to $513 million, with net cash provided by operating activities amounting to $599 million. The company used $516 million in investing activities, primarily for purchases of investments and capitalized software development costs.
The filing also highlights HubSpot's strategic acquisition of Cacheflow Inc. for $40.4 million, aimed at enhancing its commerce capabilities.
HubSpot continues to focus on expanding its customer base and increasing revenue from existing customers, with a significant portion of its revenue coming from international markets.
The company faces risks associated with competition, technological changes, and economic conditions, as detailed in the risk factors section of the filing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HubSpot Inc. annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.