What happened

Shares of HubSpot (NYSE:HUBS) climbed 18.6% in May, according to data from S&P Global Market Intelligence. Last month's double-digit gains followed a 26.6% increase for the company's share price in April. 

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HubSpot stock jumped after the company posted better-than-expected first-quarter results on May 6, and continued to rise amid momentum for the broader market as the month progressed. Non-GAAP (adjusted) earnings per share fell roughly 3% year over year to land at $0.35 per share, but sales jumped 31% to hit $199 million. The average analyst target had called for adjusted per-share earnings of $0.23 on revenue of $190.9 million.

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So what

HubSpot's strong first-quarter performance stemmed from new customer additions driving big growth for subscription services. Subscription revenue climbed 33% year over year in the first quarter, reaching $191.2 million. Total customers on HubSpot's platform went up 30% year over year to hit 78,776, and total subscription revenue per customer rose 2% year over year to $10,018. Sales for the company's professional services segment reached $7.7 million, inching up 2% compared to the prior year.

Now what

HubSpot stock, which has continued to gain ground early in June, is up roughly 6% so far.

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HubSpot will hold its annual meeting for shareholders virtually on June 17. The company is guiding for second-quarter revenue between $195 million and $196 million and adjusted earnings per share be between $0.23 and $0.25 for the period.

For the full-year period, management expects to post adjusted earnings per share between $0.88 and $0.92 on revenue of $800 million to $810 million. However, it has warned that uncertainty related to conditions created by the novel coronavirus pandemic could result in significant modifications to performance targets -- for better or worse.

HubSpot is valued at roughly 11.5 times the average analyst target for this year's sales. 

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