Shares of HubSpot surged Thursday after the company reported earnings for the March quarter that handily beat Wall Street targets. Meanwhile, the company's sales outlook edged by views from HUBS stock analysts.
After the market close on Wednesday, HubSpot reported first-quarter earnings at $1.20 a share, up 122% from a year earlier. Revenue climbed 27% to $501.6 million, the Cambridge, Mass.-based maker of web marketing software said.
Analysts expected HubSpot earnings of 83 cents on sales of $475 million for the period ended March 31. A year earlier, HubSpot's earnings were 54 cents a share on sales of $396 million.
"Despite macro (economic) headwinds, both sales and partner teams continue to execute well in driving new customers both up and down-market," TD Cowen analyst Derrick Wood said in a note to clients. "We think product innovations continue to drive more multi-product adoption and market share gains."
HubSpot stock jumped 7.4% to close at 448.85 on the stock market today.
HUBS Stock: Generative AI
"We are in the early stages of a transformative shift brought on by generative artificial intelligence," HubSpot Chief Executive Yamini Rangan said in the earnings release. "HubSpot is well positioned to help go-to-market teams be even more effective with AI, and we're incredibly excited by the opportunity it is creating to deliver even more value for customers."
Also, HubSpot recently reduced its workforce by 7%.
HubSpot's marketing focuses on digital channels such as blogs, internet search engines and social media. Further, the company aims to attract people to customer websites and optimize content in order to convert visitors into paying customers.
Heading into the earnings report, HUBS stock had advanced 43% in 2023. IBD Stock Checkup shows that HUBS stock had a Relative Strength Rating of 93 out of a best-possible 99.
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