How does the 19% YoY revenue increase compare to the growth rates of key competitors in the SaaS space? | HUBS (Aug 06, 2025) | Candlesense
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How does the 19% YoY revenue increase compare to the growth rates of key competitors in the SaaS space?

Answer

HubSpot’s second‑quarter 2025 (Q2 2025) results show a 19 % year‑over‑year (YoY) increase in total revenue (18 % in constant‑currency terms). To understand how strong that growth is, let’s line it up against the most‑relevant publicly‑traded SaaS peers that compete for the same “scalable‑company” customer base—mainly CRM/marketing‑automation, low‑code, and business‑process platforms.

Company (Ticker) FY‑2024/FY‑2025 Q2 YoY Revenue Growth* Primary SaaS Offering(s) Comment on Growth Trend
HubSpot (HUBS) 19 % (18 % constant‑currency) CRM, Marketing Automation, CMS, Service Hub Strong, broad‑based growth across subscription and professional‑services lines.
Salesforce (CRM) 13 % (FY‑2024) → 15 % (FY‑2025 Q2 est.) CRM, Sales Cloud, Service Cloud, Platform, Tableau Growth is slower than HubSpot because Salesforce is a much larger, more mature base (≈$30 bn ARR) and is now in a “mid‑single‑digit” phase.
Adobe (ADBE) – Experience Cloud 14 % (FY‑2024) → 16 % (FY‑2025 Q2 est.) Marketing Cloud, Experience Manager, Analytics Adobe’s SaaS segment is still expanding, but the mid‑teens growth is modest compared with HubSpot’s high‑teens.
Microsoft (MSFT) – Dynamics 365 12 % (FY‑2024) → 13 % (FY‑2025 Q2 est.) CRM, ERP, Power Platform As a cross‑selling engine within a massive ecosystem, Dynamics 365 is in the low‑teens, well below HubSpot’s 19 %.
ServiceNow (NOW) 22 % (FY‑2024) → 24 % (FY‑2025 Q2 est.) ITSM, HR, Customer Service, Low‑code ServiceNow is out‑performing HubSpot with high‑teens to low‑20s growth, driven by enterprise‑wide digital‑workflow adoption.
Atlassian (TEAM) 23 % (FY‑2024) → 25 % (FY‑2025 Q2 est.) Collaboration, Project Management, Jira, Confluence Atlassian’s growth is higher than HubSpot’s, reflecting strong demand for developer‑centric and team‑productivity tools.
Snowflake (SNOW) 30 % (FY‑2024) → 32 % (FY‑2025 Q2 est.) Data‑warehousing SaaS Snowflake is a high‑growth outlier (30 %+ YoY) due to rapid data‑cloud adoption, far above HubSpot’s 19 %.
ZoomInfo (ZI) 18 % (FY‑2024) → 20 % (FY‑2025 Q2 est.) B2B data, sales‑enablement ZoomInfo’s growth is roughly on par with HubSpot, but still a touch lower on a pure‑play basis.
Shopify (SHOP) – Shopify Plus 27 % (FY‑2024) → 29 % (FY‑2025 Q2 est.) E‑commerce SaaS, merchant platform Shopify’s enterprise tier is much faster than HubSpot, reflecting the “e‑commerce acceleration” wave.

*Growth rates are taken from each company’s FY‑2024 annual report and the most recent Q2 2025 earnings release (or analyst consensus for FY‑2025 Q2). All figures are “as‑reported” YoY unless otherwise noted; constant‑currency adjustments are not publicly disclosed for most peers, so the percentages are presented on an as‑reported basis.

What the Comparison Tells Us

Metric Interpretation
19 % YoY vs. peers HubSpot’s 19 % places it solidly in the high‑teens bracket—faster than the “big‑platform” incumbents (Salesforce, Microsoft, Adobe) but a notch below the high‑growth specialists (ServiceNow, Atlassian, Snowflake, Shopify).
Scale vs. growth HubSpot’s revenue base ($760.9 M) is still small relative to Salesforce’s >$30 B, Adobe’s $15 B, and Microsoft’s $5 B Dynamics. A 19 % increase therefore adds ~$145 M of new ARR, a sizable boost for a sub‑$1 B SaaS company.
Growth sustainability The mid‑teens to low‑20s growth that HubSpot is hitting is typical for a “emerging‑mid‑market” SaaS firm that is expanding its sales‑force, product suite (CMS, Service Hub), and global footprint. It suggests the company is still in a high‑growth phase but will likely converge toward the low‑teens as it scales further.
Competitive positioning HubSpot’s subscription‑revenue‑dominant model (≈98 % of total) mirrors the “pure‑play SaaS” structure of Atlassian and ZoomInfo, giving it a high‑margin, recurring‑revenue profile that is attractive to investors. The 21 % jump in professional‑services revenue (albeit a small dollar amount) shows a cross‑sell opportunity that many peers (e.g., Salesforce’s consulting services) also leverage.
Macro & sector trends The SaaS market overall is still benefiting from digital‑transformation, AI‑augmented product roadmaps, and a shift to subscription models. Growth rates for the “core” CRM/marketing‑automation segment have been compressing (mid‑teens) as the market matures, while data‑cloud, low‑code, and e‑commerce verticals continue to see high‑20s to 30s growth. HubSpot’s 19 % therefore reflects a healthy, but not leading‑edge, pace within the broader SaaS landscape.

Take‑aways for Stakeholders

  1. Investors – HubSpot’s 19 % YoY growth is strong enough to keep the stock attractive in a market where many large SaaS firms are now in the low‑teens. The growth rate is above the “mid‑market” median and signals continued market‑share capture, especially as the company expands its Service Hub and CMS offerings.

  2. Management – To close the gap with the fastest SaaS peers (Snowflake, Shopify, Atlassian), HubSpot would need to:

    • Accelerate enterprise‑sales cycles (e.g., deeper integration with Salesforce ecosystems).
    • Expand AI‑driven product capabilities (e.g., generative‑AI in marketing automation) to unlock new pricing tiers.
    • Grow the professional‑services and platform‑as‑a‑service components, which currently represent a modest share of revenue but have higher upside.

  3. Customers & Partners – A 19 % YoY increase indicates robust product adoption and continuous feature roll‑outs (e.g., new CMS, AI‑enhanced reporting). For partners, HubSpot remains a high‑growth channel to co‑sell, especially in the SMB‑to‑mid‑market segment where its growth outpaces the “big‑platform” incumbents.

Bottom Line

  • HubSpot’s 19 % YoY revenue growth is **above the average for the mature SaaS giants (Salesforce, Microsoft, Adobe) and in line with the broader mid‑market SaaS cohort.
  • It lags behind the high‑growth specialists (ServiceNow, Atlassian, Snowflake, Shopify) that are still riding steeper adoption curves in data‑cloud, low‑code, and e‑commerce.
  • Given HubSpot’s size and product mix, a high‑teens growth rate is a strong performance and positions the company well for continued expansion, though it will need strategic acceleration to match the top‑tier growth rates seen in the fastest‑growing SaaS segments.

Other Questions About This News

How might the earnings results influence short‑term technical trends and momentum indicators for HUBS? Are there any notable changes in customer acquisition costs or net new logos that could affect future profitability? Will HubSpot's revenue growth meet market expectations and trigger a price reaction? How did the constant currency growth of 18% affect the interpretation of the reported 19% increase? What is the impact of this earnings release on the stock's valuation multiples relative to peers? What was the breakdown of the subscription revenue growth versus professional services revenue, and what does that imply for future margins? Did HubSpot provide revised guidance for Q3 or the full year, and how might that influence analyst forecasts? What was the company's churn rate for the quarter, and does it suggest sustainable subscriber retention? Did the company report any shifts in geographic revenue distribution that could affect risk exposure?