What happened

Shares of HubSpot (NYSE:HUBS) spiked 150.1% last year, according to data provided by S&P Global Market Intelligence, as the company reported several quarterly earnings beats throughout the year and experienced impressive customer growth during the pandemic.

So what 

HubSpot is an inbound marketing company that uses its software services to help companies attract new customers and keep the ones it has. The tech stock experienced significant growth last year as companies looked to HubSpot's customer relationship management software to help them adapt to new challenges during lockdowns and social distancing. 

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Image source: Getty Images.

In the first nine months of 2020, HubSpot's total revenue increased 29% and sales from its subscription services jumped 30%. Additionally, the company reported adjusted diluted earnings per share of $0.92 in the first nine months of 2020, compared to $0.87 over the same period in 2019.  

Investors were also very optimistic about the tech stock last year because the company consistently beat expectations.

HubSpot beat Wall Street's earnings and revenue estimates in the first, second, and third quarters in 2020 (fourth-quarter results will be released in February), and that led to investors pushing up the company's shares throughout the year. 

In the first half of 2020, HubSpot's stock jumped 42%, followed by a 28% gain in August after the company's second-quarter results were released, and a 36% jump in November following the company's third-quarter numbers. 

Investors were also very pleased to see that HubSpot's customer growth accelerated throughout the year. At the end of the third quarter, the company had more than 95,000 customers, up 39% from the year-ago quarter. 

Now what 

With HubSpot's strong earnings and revenue growth in 2020 and its impressive customer additions, the company is setting itself up well for 2021. CFO Kathryn Bueker said on the third-quarter earnings call, "The investments we're making in both our product and go-to-market teams are paying off and will position us well to grow in 2021 and beyond." 

If HubSpot can convince the customers it added in 2020 to spend more on its services, then the company could see additional growth in 2021. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.