HubSpot reported first-quarter earnings and revenue that topped analyst estimates while its outlook came in mixed. HubSpot stock wavered Thursday amid a new report that Google-parent Alphabet is eyeing an acquisition of the web marketing specialist.
Cambridge, Mass.-based HubSpot reported March-quarter earnings after the market close on Wednesday. Bloomberg early Thursday said talks with Google are making progress. Reports that Google and HubSpot were in talks first surfaced April 4.
On an adjusted basis, HubSpot earnings came in at $1.68 a share, up 40% from a year earlier. Revenue climbed 23% to $617.4 million, the maker of web marketing software said.
A year earlier, HubSpot's earnings were $1.20 a share on sales of $502 million. Analysts expected HubSpot earnings of $1.50 on sales of $598 million.
HubSpot Stock: Guidance Mixed
HubSpot shares initially fell late Wednesday on the June quarter outlook. On the stock market today, HubSpot stock popped in early trading, then retreated. During the day, HUBS stock alternated between modest gains and losses. HubSpot stock fell 0.5% to close at 587.15.
Heading into the HubSpot earnings report, shares were up 6% in 2024. HUBS stock had advanced 38% over the past year.
For the current quarter ending in June, HubSpot forecast earnings per share of $1.63 at the midpoint of guidance and revenue of $618 million. Analysts had predicted adjusted EPS of $1.57 on revenue of $623 million.
"HubSpot delivered 23% growth, above Street of 19%, while 2024 guide was lifted 1% to 19%," said TD Cowen analyst Derrick Wood in a report. "This said, management flagged tougher macro conditions and some transitory pressures from its new pricing model that were not originally expected."
HubSpot's marketing focuses on digital channels such as blogs, internet search engines and social media. The company aims to attract people to customer websites and optimize content so that visitors are converted into paying customers.
According to IBD Stock Checkup, HUBS stock had a Relative Strength Rating of 85 out of a best-possible 99 heading into the earnings report.
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