HUBS Benefits From Strong Cash Flow Growth: Will the Momentum Last?

HubSpot, Inc. HUBS is steadily strengthening its financial profile through robust revenue growth, expanding operating profitability and stronger cash generation. The company generated $222.8 million in cash from operating activities in the second quarter, up from $164.4 million in the year-ago quarter. Non-GAAP free cash flow increased 44% year over year to $167.9 million compared with $116.2 million in the prior-year period. The improvement in cash generation is backed by stronger operating performance. In the second quarter, revenues increased 20% year over year to $911.7 million, with subscription revenues rising 20% to $894 million. At the same time, non-GAAP operating income climbed 44% to $185.