HubSpot drops after revenue forecast falls short of expectations

Shares of HubSpot HUBS.N drop ~19% to $376.79 after the company's revenue estimates fell short of expectations despite reporting strong quarterly results

HUBS on track for biggest daily pct decline since February 2016 and set for lowest close since March 2023

Co reported earnings that beat estimates, with revenue rising ~21% to $809.52 mln; analysts had expected $786.55 mln. Adj EPS stood at $2.66 vs estimate of $2.58

Co expects Q4 rev between $828 mln and $830 mln, up 18% from a year earlier

Multiple analysts, including JPMorgan, Barclays and Wells Fargo, slashed their PT on HUBS following the result

"4Q guide of +16% cc was in line w/ Street, and should leave 2-3pt of upside potential. But coming off Analyst Day when mgmt disclosed 25% NNARR (net new annual recurring revenue) growth in 1H25, investors were positioning for a clearer glide path towards 20% total rev growth," TD Cowen analysts led by Derrick Wood wrote in an investor note

TD Cowen slashed HUBS PT to $464.71 from $520

Among 36 analysts that cover HUBS, avg rating is "buy" and median PT is $601, down from $700 in August

HUBS is down 45.5% YTD vs Nasdaq Composite Index's .IXIC 19.7% increase