These 2 Stocks Just Paid Off for Smart Investors

Worries about the Federal Reserve haven't disappeared, and tough talk about potentially higher interest rates took its toll on the stock market on Thursday. Losses were worst for the Nasdaq Composite (^IXIC -0.32%), but the S&P 500 (^GSPC -0.44%) and the Dow Jones Industrial Average (^DJI -0.45%) also fell more than 1.25%.

Data source: Yahoo! Finance.

After the closing bell, however, there were a couple of standout stocks that moved sharply higher. HubSpot (HUBS 0.48%) has been a favorite among those seeking to improve on traditional online marketing practices, and the company's financial results inspired new optimism among its shareholders after seeing steep declines in 2022. Meanwhile, for DraftKings (DKNG -0.91%), the latest financial report showed that the company has been a winning bet lately, even though its stock is still well below its peak in early 2021. Read on to learn more about these two companies.

HubSpot hits the spot

Shares of HubSpot jumped 13% in after-hours trading on Thursday afternoon. The inbound marketing software specialist posted fourth-quarter financial results that impressed its shareholders.

HubSpot was able to maintain solid growth even in a relatively tough environment. Total revenue of $470 million rose 27% year over year, with subscription-based sales picking up 28% from year-ago levels. Adjusted net income for the quarter of $56.8 million came close to doubling from the same period in the previous year, working out to $1.11 per share. That closed a year in which revenue jumped 33% from 2021 and adjusted earnings came in at $2.78 per share.

Internal metrics at HubSpot looked favorable as well. Customer counts were up 24% over the past 12 months to move above 167,300. Average subscription revenue per customer inched higher to $11,231, a 3% gain.

Moreover, HubSpot predicted that 2023 would be another strong year. Revenue should rise around 18% to 19% for the full year to between $2.05 billion and $2.06 billion, and HubSpot expects adjusted earnings of $4.24 to $4.32 per share. That kind of profit growth is exactly what investors want in the current market environment, so it's no surprise to see HubSpot stock generating some positive momentum in response to the results.

A winning bet with DraftKings

Shares of DraftKings didn't get quite the same rise as HubSpot, but they were still 5% higher in after-hours trading. The sports betting provider boosted its 2023 guidance and reported strong fourth-quarter results.

DraftKings produced stellar results. Revenue soared 81% year over year to $855 million, as the company continued to launch its sportsbook and internet-based gambling products in additional states upon gaining the legal right to do so. DraftKings still lost money, but the amount of red ink was far less in the fourth quarter of 2022 than it had been 12 months before.

DraftKings saw a 31% rise in monthly unique paying customers over the past year, reaching 2.6 million. Revenue per paying customer jumped 42% to $109, as more people shifted into products that generate more sales for DraftKings.

As a result of its success, DraftKings boosted its 2023 outlook. The company raised its sales projections by $50 million to a new range of $2.85 billion to $3.05 billion, working to potential growth of 27% to 36%. With mobile sports betting in 20 states as well as in the Canadian province of Ontario, DraftKings is just getting started in developing its business and could see continued growth in the year ahead.