What happened
HubSpot (HUBS 2.71%) shareholders beat a booming market last month. Their stock rose 16% in April compared to a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.
The boost added to bigger gains in 2021, with shares up over 25% so far.
Image source: Getty Images.
So what
Investors bid the customer relationship management software provider's stock up in anticipation of a potentially strong earnings report in early May. HubSpot said three months ago that sales would reach at least the high end of its prior outlook for the fiscal first quarter, and that prediction added to rising optimism on Wall Street in April.
Now what
HubSpot's earnings report in early May did in fact show surprising strength. Sales jumped 41% compared to management's 33% outlook. Like many of its software-as-a-service (SaaS) peers, the tech stock attracted a growing base of subscription-based revenue streams.
HubSpot is predicting more strong growth in its customer base for the fiscal second quarter and is calling for over $1.2 billion of sales in 2021 compared to $883 million last year. While annual losses are still likely, investors will likely continue cheering the stock while growth remains in this high gear.
