What happened
Sales and marketing platform HubSpot (HUBS +1.13%) beat the market last month by gaining 14%, according to data provided by S&P Global Market Intelligence, compared to a 2% increase in the S&P 500.
The rally sent shares to new highs, and the stock is up more than 300% since its late 2014 IPO.
So what
Investors celebrated the software specialist's first-quarter report, which in early May showed that sales rose 39% to $115 million in the first quarter to match HubSpot's expansion pace from the prior quarter. Management had predicted a smaller increase to between $109 million and $110 million, and so the results were a pleasant surprise. Non-GAAP profits also came in above expectations, although the company remains unprofitable on a GAAP basis.
Image source: Getty Images.
Now what
HubSpot just launched a services offering that will join its marketing and sales units to provide a more complete solution for its customers. CEO Brian Halligan and his team believe the broader coverage, combined with stronger overall demand, should contribute to healthy sales gains this year. That's why executives raised their forecast on both the top and bottom lines and are now projecting revenue of between $489 million and $492 million and non-GAAP operating income of between $22 million and $25 million, up from last year's $9 million haul.
