What happened
Shares of HubSpot (HUBS -0.01%) climbed 26.6% in April, according to data from S&P Global Market Intelligence. The marketing software company's stock bounced back last month after falling 25.8% in March's trading.
HubSpot shares climbed in April in conjunction with business updates and positive momentum for the broader market. The company announced a new content management system hub on April 7, and it published a blog post the following day outlining how the novel coronavirus was impacting engagement on its platforms.
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So what
HubSpot in early April revealed new stand-alone CMS services geared specifically toward marketers at the professional and enterprise levels. The company's management said that the new system is designed to make managing marketing websites and making complex changes quicker and easier. The company's share price saw significant gains following the announcement.
HubSpot's April 8 update on how the coronavirus crisis was affecting its business also spurred positive momentum for the stock. The company noted that buyers were seeking out businesses in April more than they had in March, but it also stated that deal creation volume was down. Websites on HubSpot's platform saw visits increase 13% in March compared to February, and the company said that marketing outreach, email open rates, and database growth had increased since the start of the coronavirus crisis.
Now what
HubSpot stock has continued to climb in May's trading and got a boost following the publication on May 6 of first-quarter results. The company's shares are up roughly 9% in the month as of this writing.
HubSpot posted adjusted earnings of $0.35 per diluted share on revenue of $199 million, topping the average analyst estimate call for earnings per share of $0.23 and sales of $190.9 million. Sales were up year-over-year, but the company's diluted earnings per share fell by a penny.
HubSpot expects second-quarter revenue to come in between $195 million and $196 million, and adjusted earnings per share to be between $0.23 and $0.25 for the period. Full-year revenue is expected to be between $800 million and $810 million, and annual adjusted earnings per share are projected to be between $0.88 and $0.92.
