Q1 2025 HubSpot Inc Earnings Call Transcript
Key Points
- HubSpot Inc (HUBS) reported an 18% year-over-year revenue growth in constant currency for Q1 2025.
- The company added over 10,000 net new customers, bringing the total to over 258,000 globally, marking a 19% increase year over year.
- HubSpot Inc (HUBS) announced its first-ever share repurchase program, authorizing up to $500 million, signaling confidence in its business and growth opportunities.
- AI adoption is accelerating, with Copilot user engagement more than doubling from 270,000 in Q4 to over 660,000 in Q1.
- The company is expanding its AI capabilities, with customer agent adoption doubling in three months and plans to extend it to all Pro and Enterprise customers across every hub starting June 2.
- Average subscription revenue per customer decreased by 2% year over year in constant currency and 4% on an as-reported basis.
- Net revenue retention was 102% in Q1, down 2 points sequentially.
- The macroeconomic environment remains uncertain, with a heightened focus on value and economic conditions expected to persist through the year.
- HubSpot Inc (HUBS) expects net customer additions to moderate to roughly 9,000 in the coming quarters.
- The company does not expect a material impact on 2025 revenue from the midyear launch of its credit-based pricing for AI agents.
Good afternoon, and welcome to the HubSpot Q1 2025 earnings call. My name is Gigi, and I'll be your operator for today. (Operator Instructions)
I would now like to hand the conference over to Senior Director of Investor Relations, Ryan Burkart. Please go ahead.
Thanks, operator. Good afternoon, and welcome to HubSpot's first-quarter 2025 earnings conference call. Today, we'll be discussing the results announced in the press release that was issued after the market closed. With me on the call this afternoon is Yamini Rangan, our Chief Executive Officer; Dharmesh Shah, our Co-Founder and CTO; and Kate Bueker, our Chief Financial Officer.
Before we start, I'd like to draw your attention to the Safe Harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act
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