HubSpot reports 23% year-over-year revenue growth, surpassing Salesforce’s 14%, amid a partial recovery in SaaS stocks.
HubSpot and Salesforce have underperformed this year, declining 54% and 40% respectively, despite AI-driven demand. The broader SaaS sector, tracked by the iShares Expanded Tech-Software Sector ETF, has rebounded from a 30% drop to a 14% decline year-to-date.
HubSpot’s revenue grew 23% year-over-year in Q1, outpacing Salesforce’s 14% growth in its latest fiscal quarter. HubSpot also leads in market share gains, positioning itself as an “agentic customer platform.” However, Salesforce maintains a stronger profit margin at 19%.
The SaaS sell-off earlier this year, dubbed the “SaaSpocalypse,” has eased as concerns over AI disrupting the sector fade. Many software stocks now appear undervalued after the correction.