Top 10 Stocks to Buy According to Durable Capital Partners

3. HubSpot, Inc. (NYSE:HUBS)

Number of Hedge Fund Holders as of Q4: 73

Durable Capital Partners’ Equity Stake: $672.61 Million 

HubSpot, Inc. (NYSE:HUBS) is an AI-driven customer platform that provides businesses with software, integrations, and resources to enhance marketing, sales, and customer service. Its connected ecosystem helps companies grow by streamlining customer interactions and optimizing business operations.

HubSpot, Inc. (NYSE:HUBS) generates most of its revenue from subscription fees, accounting for 97.7% of total earnings, while a smaller share comes from professional services and other sources. On March 12, Barclays upgraded HubSpot’s stock rating to Overweight from Equal Weight, maintaining a price target of $815, citing factors such as pricing adjustments, an increase in core customers, and improved performance comparisons.

For the fourth quarter of 2024, HubSpot, Inc. (NYSE:HUBS) reported total revenue of $703.2 million, reflecting a 21% year-over-year increase on a reported basis and a 20% increase in constant currency. Subscription revenue reached $687.3 million, growing by 21%, while professional services and other revenue totaled $15.9 million, up 36%. Over the full year 2024, the company recorded a total revenue of $2.63 billion, marking a 21% increase compared to 2023. Subscription revenue grew by 21% to $2.57 billion, while professional services and other revenue climbed 24% to $58 million.

CEO Yamini Rangan highlighted HubSpot’s transformation in 2024, emphasizing the integration of AI across its platform and its impact on customer value. She expressed confidence in the company’s strategy heading into 2025, positioning HubSpot as a leading AI-first customer platform for scaling businesses.

Looking ahead, HubSpot, Inc. (NYSE:HUBS) projects revenue for the first quarter of 2025 between $697 million and $699 million, a 13% year-over-year increase. Non-GAAP operating income is projected between $98 million and $99 million, with an operating profit margin of 14%. The company expects earnings per share to range from $1.74 to $1.76, assuming approximately 54.1 million weighted average diluted shares outstanding.

HubSpot’s strong financial performance, continued revenue growth, and strategic investment in AI reinforce its position as a key player in the customer relationship management industry.