Shares of marketing software company HubSpot (NYSE:HUBS) jumped on Friday, rising as much as 22.2%, until settling to a gain of about 17% as of 11:15 a.m. EST.
The growth stock's gain follows HubSpot's strong fourth-quarter report, which featured revenue and adjusted earnings per share that crushed analysts' consensus forecasts for the two metrics.
Fourth-quarter revenue rose 35% year over year to $252.1 million. This was fueled primarily by 36% growth in subscription revenue, to $244.3 million. Adjusted EPS for the period was $0.40, up from $0.38 a year ago.
On average, analysts were expecting revenue and adjusted EPS of $237 million and $0.23, respectively.
In the fourth-quarter earnings release, CEO Brian Halligan said, "During the quarter we surpassed 100,000 total customers, and in December we crossed $1 billion in annual recurring revenue -- two great milestones that reflect the determination of our team and the strength of our customer relationships."
The company guided for full-year 2021 revenue between $1.16 billion and $1.17 billion. This compares to 2020 revenue of $883 million. Analysts on average are expecting revenue for the full year of $1.06 billion.
For the first quarter of 2021, management said it expects revenue between $260 million and $265 million, well ahead of analysts' average forecast for $245 million.