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HubSpot (HubSpot) Gross Margin % : 84.77% (As of Dec. 2023)


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What is HubSpot Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HubSpot's Gross Profit for the three months ended in Dec. 2023 was $493 Mil. HubSpot's Revenue for the three months ended in Dec. 2023 was $582 Mil. Therefore, HubSpot's Gross Margin % for the quarter that ended in Dec. 2023 was 84.77%.


The historical rank and industry rank for HubSpot's Gross Margin % or its related term are showing as below:

HUBS' s Gross Margin % Range Over the Past 10 Years
Min: 69.73   Med: 80.27   Max: 84.08
Current: 84.08


During the past 13 years, the highest Gross Margin % of HubSpot was 84.08%. The lowest was 69.73%. And the median was 80.27%.

HUBS's Gross Margin % is ranked better than
90.18% of 2628 companies
in the Software industry
Industry Median: 41.71 vs HUBS: 84.08

HubSpot had a gross margin of 84.77% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for HubSpot was 0.70% per year.


HubSpot Gross Margin % Historical Data

The historical data trend for HubSpot's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HubSpot Gross Margin % Chart

HubSpot Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 80.74 81.09 80.10 81.84 84.08

HubSpot Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 82.91 83.64 83.50 84.30 84.77

Competitive Comparison of HubSpot's Gross Margin %

For the Software - Application subindustry, HubSpot's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HubSpot's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, HubSpot's Gross Margin % distribution charts can be found below:

* The bar in red indicates where HubSpot's Gross Margin % falls into.



HubSpot Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

HubSpot's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1824.7 / 2170.23
=(Revenue - Cost of Goods Sold) / Revenue
=(2170.23 - 345.489) / 2170.23
=84.08 %

HubSpot's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=493.3 / 581.915
=(Revenue - Cost of Goods Sold) / Revenue
=(581.915 - 88.635) / 581.915
=84.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


HubSpot  (NYSE:HUBS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

HubSpot had a gross margin of 84.77% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


HubSpot Gross Margin % Related Terms

Thank you for viewing the detailed overview of HubSpot's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


HubSpot (HubSpot) Business Description

Traded in Other Exchanges
Address
25 First Street, 2nd Floor, Cambridge, MA, USA, 02141
HubSpot provides a cloud-based marketing, sales, and customer service software platform referred to as the growth platform. The applications are available ala carte or packaged together. HubSpot's mission is to help companies grow better and has expanded from its initial focus on inbound marketing to embrace marketing, sales, and service more broadly. The company was founded in 2006, completed its initial public offering in 2014, and is headquartered in Cambridge, Massachusetts.
Executives
Brian Halligan director, officer: Chief Executive Officer C/O HUBSPOT, 25 FIRST STREET, CAMBRIDGE MA 02141
Ronald S Gill director C/O NETSUITE INC, 2955 CAMPUS DRIVE SUITE 100, SAN MATEO CA 94403
Kathryn Bueker officer: Chief Financial Officer C/O HUBSPOT, INC., 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141
Dharmesh Shah director, officer: Chief Technology Officer 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141
Lorrie M Norrington director C/O EBAY INC., 2145 HAMILTON AVENUE, SAN JOSE CA 95125
Dawson Alyssa Harvey officer: Chief Legal Officer 1100 PAGE MILL RD, PALO ALTO CA 94304-1974
Andrew Anagnost director 111 MCINNIS PARKWAY, AUTODESK, INC., SAN RAFAEL CA 94903
Yamini Rangan officer: Chief Customer Officer 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Claire D'oyly-hughes Johnson director C/O AMERESCO, INC., 111 SPEEN STREET, STE. 401, FRAMINGHAM MA 01701-3812
John P. Kelleher officer: General Counsel 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141
Nick V. Caldwell director C/O HUBSPOT, INC., 25 FIRST STREET, CAMBRIDGE MA 02141
Michael K Simon director C/O LOGMEIN, INC., 500 UNICORN PARK DRIVE, WOBURN MA 01801
J Donald Sherman officer: Chief Operating Officer C/O CITRIX SYSTEMS, INC., 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Hunter Madeley officer: SVP, Global Sales 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141
John Kinzer officer: Chief Financial Officer 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141