HubSpot Earnings: Good Period With Strong Customer Additions and Swelling Funnel

We are raising our fair value estimate to $620 per share from $610 after narrow-moat HubSpot reported good second-quarter results that were nicely ahead of our expectations for headline figures. This report was very similar to the last several quarters. Key guidance measures for growth and profitability were raised for the year but were raised by slightly less than upside this quarter. The outlook has several offsetting factors that do not have a material impact on our long-term assessment. We continue to view HubSpot as well-positioned in the midmarket for marketing and sales automation software, with an expanding and powerful portfolio and a robust growth profile coupled with solid execution. After months of being overvalued, we see the stock as attractive, especially since Alphabet reportedly stopped pursuing the acquisition of HubSpot.