Please ensure Javascript is enabled for purposes of website accessibility

Why HubSpot Stock Jumped on Thursday

By Daniel Sparks - Updated Aug 6, 2020 at 2:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The tech company is growing its top line at an impressive rate.

What happened

Shares of marketing software company HubSpot (HUBS 4.93%) jumped on Thursday, rising 10.5% as of 1:55 p.m. EDT.

The tech stock's gain follows HubSpot's second-quarter earnings release. Shares are likely trading higher because the company beat expectations for its top and bottom line. In addition, management lifted its view for the full year.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

HubSpot reported second-quarter revenue of $203.6 million, up 25% from the year-ago period. Non-GAAP (adjusted) earnings per share for the period was $0.34, up from $0.31 in the year-ago period.

Analysts, on average, were expecting revenue of $195.6 million and non-GAAP earnings per share of $0.24.

"The world is evolving this year -- from offline to online, from old to new -- at a far greater pace than anyone could have expected," said HubSpot CEO Brian Halligan in the company's second-quarter earnings release. "At HubSpot, we feel well positioned to help companies navigate that change and come out stronger on the other side."

Now what

The company's third-quarter guidance was also impressive. Management said it expected third-quarter revenue to be between $210 million and $211 million. On average, analysts were expecting third-quarter revenue of $200.45 million. Notably, this guidance factors in "heightened uncertainty caused by the COVID-19 pandemic," management said.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends HubSpot. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

HubSpot Stock Quote
$372.99 (4.93%) $17.53

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.