HubSpot CEO Brian Halligan. (Courtesy of HubSpot)

The drama surrounding HubSpot’s ouster of CMO Mike Volpe has died down significantly since the marketing software company released its Q2 earnings, and it will likely stay that way at least until tech journalist and former employee Dan Lyons releases his supposed expose on the company next year.

At the time, CEO Brian Halligan addressed the controversy during a Q2 earnings call, saying that he’s “not proud of the way our CMO transition played out, but I am proud of the transparent culture of HubSpot that brought the matter to light.”

Outside of the book brouhaha, HubSpot (HUBS) has been making some moves on a few fronts, including announcing the launch of four new products at its annual Inbound conference, which brought in some major stars, like Amy Schumer and Aziz Ansari.

At market close, HubSpot’s stock price was flat around $53.14 a share after briefly spiking to $55.

Here’s what we’ve been watching in HubSpot’s Q3 earnings:

Progress on earnings

In HubSpot’s Q3 earnings report, the company beat analyst expectations once again, though it’s still not profitable yet. The company reported a net loss of 27 cents per share, exceeding the analyst consensus estimate of 32 cents per share.

Like the previous quarters, revenue growth remained a bright spot: its Q3 revenue was $47.7 million, a 57 percent increase over the same quarter last year and above the analyst consensus estimate of $44.58 million. That’s just one per cent below the revenue growth it saw during this year’s first two quarters.

HubSpot also raised its guidance for its full-year 2015 revenue once again, to between $178.5 million to $179.5 million, from a previous range of $171.7 million and $173.7 million. For Q4 guidance, it said total revenue is expected to be in the range of $49.7 million to $50.7 million, with a net loss between 19 cents to 17 cents per share.

“Q3 was yet another strong quarter for HubSpot and we’re thrilled by the results,” Brian Halligan, HubSpot’s chairman and CEO, said in a statement. “We maintained our momentum with strong revenue growth and improved margins–an indicator that our mission to help companies reach their customers in effective and meaningful ways is truly resonating. We’re excited that HubSpot has become the engine that helps our customers achieve their business goals.”

Breaking down the revenue

HubSpot’s subscription revenue was $44.1 million, a 57 percent increase over the same quarter last year. Professional services and other revenue, a much smaller category, was $3.6 million, a 37% increase over the same period.

The company’s total number of customers for Q3 was 16,854, a 35 percent increase from the end of the same quarter from last year. During the same period, average subscription revenue per customer grew to $10,607 from $9,183.

On the earnings call, HubSpot CFO John Kinzer said international revenue grew 78 percent and represented 25 percent of total Q3 revenue.

R&D expenses nearly double

In HubSpot’s breakdown of expenses, the company noted that research and development costs nearly doubled to $8.2 million from $4.8 million during the same quarter in the previous year.

Traction with new products

The four new products HubSpot introduced at Inbound were:

  • HubSpot Connect, which connects customer data in different apps through a central system
  • Leadin, a tool that lets users capture more info about website visitors to generate more leads
  • New additions to Sidekick, its software for salespeople
  • A custom reporting add-on for HubSpot’s marketing and sales products
During the earnings call, Halligan did not go into specifics on the impact of each new product—besides saying early reception has been good—but said in more general terms that they are expected to help increase revenue, average subscription revenue per customer and customer retention.
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