FMP
Nov 7, 2024 4:06 AM - Andrew Wynn
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HubSpot Inc. (NYSE:HUBS) is a leading provider of software solutions for inbound marketing, sales, and customer service. The company offers a comprehensive platform that helps businesses attract, engage, and delight customers. HubSpot competes with other major players in the software industry, such as Salesforce and Adobe, by providing innovative tools and services that enhance customer relationship management.
In the third quarter of 2024, HubSpot's revenue of $669.72 million surpassed the Zacks Consensus Estimate of $646.81 million, resulting in a positive surprise of 3.54%. The company's EPS was reported at $2.18, up from $1.59 in the previous year, exceeding the consensus EPS estimate of $1.89 by 15.34%. These results highlight HubSpot's strong financial performance, with both revenue and EPS significantly outperforming Wall Street expectations.
HubSpot's financial metrics provide insight into its market valuation and financial health. The company has a price-to-sales ratio of approximately 12.25, indicating how the market values its revenue. The enterprise value to sales ratio is slightly higher at 12.39, reflecting the company's total valuation in relation to its sales. Additionally, the enterprise value to operating cash flow ratio stands at 61.02, suggesting a high valuation compared to its cash flow from operations.
HubSpot maintains a moderate debt-to-equity ratio of 0.43 and a current ratio of 1.64, demonstrating a good level of liquidity to cover short-term liabilities. These metrics are crucial for investors as they provide a clearer picture of the company's financial health and potential stock price performance.
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