HubSpot Cuts 7% of Workforce and Reaffirms Third-Quarter Guidance
HubSpot, Inc. (NYSE:HUBS) is reducing its headcount by approximately 7% and expects to record between $65 million and $75 million in restructuring charges.
Despite the workforce reduction, the company reaffirmed its third-quarter financial outlook, anticipating adjusted earnings of $3.25 to $3.27 per share on revenue of $924 million to $925 million. Wall Street analysts remain constructive, with five notes issued over the last month setting price targets between $255 and $300. Needham maintained a Buy rating with a $300 target price.
Market participants will be monitoring the implementation of the cost-cutting measures and the upcoming quarterly results to verify financial performance. Shares of HubSpot recently traded at $228.30, down 1.53% for the day.
Key points
- HubSpot, Inc. (NYSE:HUBS) is cutting roughly 7% of its workforce.
- The company expects restructuring charges ranging between $65 million and $75 million.
- Management reaffirmed third-quarter guidance of $3.25–$3.27 adjusted EPS and $924–$925 million in revenue.
- Analyst price targets over the past 30 days range from $255 to $300, including Needham's $300 Buy rating.
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How we writeDisclaimerQuestions and answers
Why is HubSpot cutting jobs?
HubSpot is reducing its staff by about 7% to restructure operations, expecting related charges of $65 million to $75 million.
Did HubSpot change its Q3 financial guidance?
No, HubSpot reaffirmed its third-quarter guidance, maintaining expected adjusted EPS of $3.25 to $3.27 and revenue of $924 million to $925 million.
What are analyst price targets for HubSpot?
Analyst price targets over the past 30 days range from $255 to $300, including Needham's $300 target and Buy rating.