HubSpot Exceeds Analyst Expectations with Strong Q1 Earnings, but Stock Falls After Release

HubSpot (HUBS) reported first-quarter earnings and revenue that exceeded analyst estimates. The company’s outlook for HubSpot stock was mixed, with profit above expectations and revenue below. On an adjusted basis, HubSpot earnings came in at $1.68 a share, up 40% from the previous year. Revenue increased by 23% to $617.4 million. This is compared to earnings of $1.20 a share and revenue of $502 million in the same quarter the previous year, surpassing analysts’ expectations.

Heading into the report, shares had seen a 6% increase in 2024 and a 38% increase over the past year. However, after the earnings report was released, HubSpot’s stock fell more than 2% to $576.01 in extended trading. 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.

For the current quarter ending in June, HubSpot forecasted earnings per share of $1.63 at the midpoint of guidance and revenue of $618 million. Analysts were expecting adjusted EPS of $1.57 on revenue of $623 million. HubSpot’s marketing strategy revolves around digital channels such as blogs, internet search engines, and social media to attract people to customer websites and convert visitors into customers.

If you are interested in trading options or learning how to time the market with IBD’s ETF Market Strategy or monitoring IBD’s “Breaking Out Today” list for companies hitting new buy points, check out our valuable resources available for you today!