What happened
Not for the first time, HubSpot (HUBS -0.09%) stock raced higher Thursday following the delivery of a well-received earnings report. The marketing software specialist enjoyed a more than 7% lift to its share price on Thursday, far outpacing the S&P 500 index, which slumped by nearly 1%.
So what
Happily for HubSpot and its shareholders, the company crushed first-quarter earnings, and on top of that provided better-than-expected guidance.
The niche tech company booked revenue of nearly $502 million, which was a solid 27% higher on a year-over-year basis. Of its two key revenue streams, the larger -- subscriptions -- rose by the same percentage to hit almost $490 million. Professional services and other revenue combined advanced at a 12% clip.
HubSpot also cranked its non-GAAP (adjusted) net income higher. It more than doubled to $61.6 million, or $1.20 per share, for the period, against its year-ago profit of $27.5 million.
Both headline results were well above the average analyst estimates. Collectively, prognosticators following the company's stock were anticipating revenue of almost $475 million and adjusted net income of $0.83 per share.
"Our results show that our product innovation is in high gear and that our bi-modal go-to-market strategy is working," CEO Yamini Rangan said in the earnings press release. "We continue to operate in a tough macroeconomic environment but we have a solid playbook for executing and driving sustainable growth despite this challenge."
Now what
HubSpot is confident it can succeed in this mission. The company provided guidance for both the current quarter and the entirety of 2023. For the year, it's anticipating total revenue of $2.08 billion to nearly $2.09 billion, and believes it will net an adjusted profit per share of $4.80 to $4.85. The average analyst's estimates were for revenue of $2.06 billion and earnings per share of $4.27.
