HubSpot (HUBS) shares surged 10.34% on Thursday, driven by the company's impressive fourth-quarter results and robust AI strategy, which is fueling growth prospects. The customer relationship management (CRM) software provider reported better-than-expected earnings and revenue for Q4 2024, propelling its stock higher.

The company's strong performance was underpinned by several key factors, including growing multi-hub adoption, strong performance in the upmarket and down-market segments, improved customer retention, and product innovation. However, the standout driver was HubSpot's increasing focus on integrating artificial intelligence (AI) capabilities across its platform.

During the quarter, HubSpot made significant strides in its AI strategy, launching AI-powered offerings such as Content Hub, AI agents for customer service, and a digital assistant called Breeze Copilot. These AI initiatives have gained traction among customers, enabling businesses to optimize workflows, produce more effective content, and streamline operations.

HubSpot's earnings call transcript revealed the company's commitment to becoming an "AI-first customer platform" by embedding AI into every product hub and across the entire platform. The success of AI-driven features like content remix and customer agent showcased the potential for AI to enhance the user experience and drive customer growth.

Looking ahead, HubSpot is doubling down on its AI strategy, aiming to unify structured and unstructured data, provide complete context across the entire customer journey, and foster a vibrant AI agent ecosystem. The company's acquisition of Frame AI further bolsters its ability to combine structured and unstructured data, providing a competitive edge in the rapidly evolving AI landscape.