HubSpot Tumbles 24% After Cautious Outlook and AI Pricing Pivot

Overview

• HubSpot shares fell about 24% Friday in premarket and early trading, pushing the stock toward a 52‑week low after its quarterly report and outlook.
• The company beat first‑quarter expectations with $881 million in revenue, up 23% year over year, and adjusted earnings of $2.72 per share.
• Management guided second‑quarter revenue to $897–$898 million versus roughly $899 million expected and lifted full‑year targets only slightly, which several analysts said did not reflect the full Q1 beat.
• HubSpot cut prices on its new AI “agents” and switched to outcome‑based fees that charge only when the software completes a task, with about 9,000 customers using the service agent and 14,000 using the prospecting agent.
• The CFO said a week of April retraining for sales teams slowed early Q2 activity, and firms including BofA, William Blair, and Cantor issued downgrades and price‑target cuts after the update.