HubSpot's Breeze AI Platform Could Add Millions In Revenue By 2027: Analyst

Bank of America Securities (BofA) analyst Brad Sills maintained a Buy rating on HubSpot, Inc. (NYSE:HUBS) with a price forecast of $740 on Monday.

Sills took a deep dive into the key components of HubSpot’s emerging Breeze AI platform.

The analyst doesn’t expect material revenue from Breeze until fiscal 2027, but he notes it’s a useful exercise to take a bottoms-up approach to model incremental revenue from Breeze.

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Sills asserted that the point of the modeling exercise is not to predict the timing of revenue but to illustrate Breeze AI can move the needle on growth without heroic assumptions, given the value of the offerings and scale of HubSpot’s installed base.

Like Salesforce (NYSE:CRM), the analyst noted that the use case for AI is most compelling in HubSpot’s sales and marketing categories, given the promise of sales productivity and potential revenue uplift.

However, he noted that in HubSpot’s small to medium-sized business (SMB) end market, third-party agentic tools like ChatGPT could substitute for agents.

Channel feedback suggested HubSpot customers do not have the same restriction on third-party tools that enterprises do and are running these tools for basic generative use cases such as marketing content, Sills noted.

Sills added that this means Breeze agents need to solve more sophisticated workflows to drive adoption.

He said HubSpot has a robust set of agents, including customer agents, content agents, social media agents, prospecting agents, and knowledge base agents.

Sills noted that these agents can drive meaningful workflow automation over time because they run on a proprietary and robust data set.

HubSpot manages over 200 million company and buyer profiles, the analyst noted. Also, with the acquisition of Frame AI, he said Breeze can ingest vast amounts of unstructured data.

On May 8, the company expanded the use of HubSpot credits to Customer Agent across Marketing, Sales, Service, and all other core hubs, Sills noted.

Pro and Enterprise customers will have a baseline credit package per month and can purchase more credits at $10/1000 credits, the analyst said.

In a Customer Agent base case, assuming 2.5% and 3% agent penetration and 10% and 13% resolution rate, Sills arrived at $30 million and $ 84 million of revenue contribution in fiscal 2026 and 2027, representing 1% and 2% points of growth, respectively.

Sills projected fiscal 2025 sales of $3.04 billion and EPS of $9.33.

Price Action: HUBS stock is up 1.08% at $540.26 at last check Monday.

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