Sales Software Stocks Q4 Results: HubSpot (NYSE:HUBS) Delivers Strong Performance Across the Board

Q4 Performance Review: Sales Software Stocks

As we reflect on the fourth-quarter earnings of sales software companies, we highlight the standout performers and those that lagged behind, focusing on HubSpot (NYSE:HUBS) and its industry counterparts.

Modern businesses require seamless and effective ways to connect with customers and drive sales. The ongoing shift to cloud technology has fueled demand for cloud-based customer relationship management (CRM) platforms, which combine data analytics with sales and marketing tools to streamline operations.

Overall Q4 Results

The four sales software companies we monitor delivered a robust fourth quarter. Collectively, their revenues surpassed Wall Street expectations by 1.8%, and their forecasts for the upcoming quarter were consistent with analyst projections.

Following these results, the group’s share prices have remained stable, with an average increase of 4.5% since the earnings announcements.

Top Performer: HubSpot (NYSE:HUBS)

HubSpot was founded on the belief that traditional, interruptive marketing was losing its effectiveness. Today, HubSpot offers a comprehensive platform that empowers organizations to attract, engage, and nurture customer relationships through integrated marketing, sales, service, and content management solutions.

In the latest quarter, HubSpot reported $846.7 million in revenue, marking a 20.4% year-over-year increase and beating analyst estimates by 2%. The company not only exceeded expectations for billings but also provided next quarter’s EPS guidance above analyst forecasts, making it a particularly strong period for HubSpot.

HubSpot led the group in revenue growth, and its stock price has surged 33.9% since the earnings release, now trading at $280.30.

Curious if HubSpot is a smart investment right now?

Salesforce (NYSE:CRM)

Salesforce, known for its CRM (Customer Relationship Management) cloud platform, enables businesses to connect with their customers across sales, service, marketing, and commerce channels.

For the quarter, Salesforce posted $11.2 billion in revenue, a 12.1% increase from the previous year, aligning with analyst expectations. The company outperformed on billings and delivered a notable beat on EBITDA estimates, reflecting a strong quarter overall.

Investors responded positively, with Salesforce shares rising 1.1% post-earnings to $193.80.

Wondering if Salesforce is a buy?

Lowest Q4 Performer: Freshworks (NASDAQ:FRSH)

Freshworks began as a customer service platform and has since evolved into a suite of AI-driven SaaS solutions, helping organizations manage customer support, IT services, sales, and marketing.

In the quarter, Freshworks generated $222.7 million in revenue, up 14.5% year over year and 1.8% above analyst forecasts. However, the company’s full-year EPS guidance fell significantly short of expectations, resulting in a mixed performance.

Reflecting these results, Freshworks shares have declined 2.4% since the report and are currently priced at $8.52.

ZoomInfo (NASDAQ:GTM)

ZoomInfo operates "RevOS" (Revenue Operating System), a platform that equips sales, marketing, and recruiting teams with business intelligence and analytics to identify leads and execute targeted outreach.

ZoomInfo reported $319.1 million in revenue for the quarter, a 3.2% year-over-year increase and a 3.2% beat over analyst expectations. While the company outperformed on annual recurring revenue, its full-year guidance pointed to slowing revenue growth, resulting in a mixed quarter.

Although ZoomInfo delivered the largest beat relative to analyst estimates, it experienced the slowest revenue growth among its peers. Its stock has dropped 14.8% since the earnings release and now trades at $6.24.

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The StockStory analyst team—comprised of experienced professional investors—leverages quantitative analysis and automation to deliver timely, high-quality market insights.