Shares of HubSpot (NYSE:HUBS) were rising quickly this morning after the company reported better-than-expected sales and earnings in its third quarter.
The tech stock had gained as much as 17.7% this morning and was up 17.2% as of 11:31 a.m. EST.
HubSpot released its third-quarter results yesterday, showing that sales jumped by 32% year over year to $228.4 million and adjusted diluted earnings were $0.28 per share. Those figures outpaced analysts' consensus estimates and were higher than management's guidance, which prompted investors to drive HubSpot's stock higher.
CEO Brian Halligan said in a press release that management is "happy that the tailwinds continued to strengthen last quarter for HubSpot" and added that, "The year is not over, but I believe the growth we've seen in the third quarter is both a sign of the ongoing digital transformation of the mid-market and a reflection of newly heightened expectations when it comes to how easy [customer relationship management] platforms need to be to match rapidly changing times."
HubSpot's jump this morning adds to the company's share prices gains this year and puts its stock up 148% year to date.
HubSpot's management provided guidance for the fourth quarter and said that sales will be $236 million and adjusted earnings will be $0.22 per share, both at the midpoint of guidance. Additionally, management said that full-year revenue will be $867 million at the midpoint, which would be a 28% increase from the previous year.