Why has HubSpot (Hubs) declined 37.9% since the last earnings report?

It’s been about a month since the last earnings report for (HUBS) at https://www.webull.com/quote/nyse-hubs . Shares have lost about 37.9% over that period, which is down to the S&P 500.

Will the recent negative trend lead to its next earnings release, or will HubSpot be a breakout? Before we get into how investors and analysts have reacted to the delay, let’s take a quick look at its most recent earnings report to get a better handle on critical catalysts.

HubSpot Q4 surpasses earnings and earnings estimates

Inc. In the fourth quarter of 2019, non-GAAP earnings per share fell 45 cents to Jax’s consensus estimate of 7.1%, up 21.6% from the previous year’s quarter. This figure exceeds the management’s guidance range of 40-42 cents.

Zacks consensus estimate of 6 186.2 million revenues. 180.9 million And was up 29.3% year-on-year (31% on a constant currency basis). This figure was higher than the administration’s guidance range of .3 180.3- $ 181.3 million.

The top line is driven by accelerating subscription revenue. Furthermore, the growing customer count, which increased 30% year over year to 73,483, contributed to the results.

Quarterly details

Subscription revenues (96.2% of total revenues) increased 31% from the prior year quarter to $ 179.1 million. Professional services and other revenues (3.8%) were down 2% year over year to $ 7.1 million.

Total customer subscriptions per customer increased 0.3% year over year to 10,047.

Deferred revenue (including current portion) increased 26.2% year-on-year to $ 234.1 million. Meanwhile, the estimated billings, revenues and deferred revenue change came to $ 217 million, an increase of 30% year-over-year and fixed-currency basis.

International revenues improved 39% (43% in CC) from the previous year’s quarter, which accounted for 41% of total revenues in the reported quarter.

Detail edges

For one management, the non-GAAP gross margin was 82%, which is a contraction of about 30 basis points (PPS) from the prior year quarter. We note that the gross margin of non-GAAP services was 5% negative. Furthermore, the non-GAAP subscription margin shrank by 150% on a year-over-year basis.

Non-GAAP Research and Development (R&D) expenses were flat as a percentage of revenues at 18% per year. Non-GAAP general and administrative (G&A) expenses shrank from 200 bps to 10% on a year-over-year basis. Meanwhile, non-GAAP sales and marketing (S&M) expenses expanded by 100 bps to 44% from the prior year quarter.

The company reported non-GAAP operating income of 6 17.6 million, up 24.5% from the previous year. Non-GAAP operating margin shrunk by 9.5% on a year-over-year basis to 30 bps.

Balance Sheet and Liquidity

Cash flow from operations in the reported quarter was $ 47.9 million compared to $ 19.7 million in the previous quarter.

Free cash flow was $ 24.4 million compared to $ 6.7 million in the previous quarter. You can get Nasdaq cblk news at https://www.webull.com/quote/nasdaq-cblk .