HubSpot Inc. (HUBS) saw its stock rally more than 13% in the extended session Thursday after the software company reported an adjusted per-share profit and sales above Wall Street expectations for its fourth quarter. The company said it had “stepped up to the challenging macroeconomic conditions that emerged in 2022”.
For the fourth quarter, HubSpot reported a net loss of $15.6 million, or 32 cents a share, compared with a loss of $16.4 million, or 35 cents a share, in the year-ago quarter. After adjusting for one-time items, the company earned $1.11 a share. Revenue rose 27% to $469.7 million, the company said, including subscription revenue of $458.2 million. Analysts polled by FactSet had expected HubSpot to report adjusted earnings of 83 cents a share on sales of $446 million.
The company also provided guidance for the first quarter. It expects revenue to be between $473 million and $475 million, and adjusted earnings per share (EPS) to be in between 82 cents and 84 cents. This would be above FactSet consensus. For the full year, HubSpot guided for sales between $2.050 billion and $2.060 billion, and adjusted EPS between $4.24 and $4.32.
Prior to the news, shares of HubSpot had ended the regular trading day down 1.51%. The stock’s performance in the extended session was a welcome sign for investors, as the company had seen its share price decline steadily since the beginning of 2021.
The company’s ability to deliver better-than-expected results in a difficult macroeconomic environment was a positive sign for investors. It showed that the company has been able to navigate the challenges of the pandemic and remain profitable. It also suggests that the company is well-positioned to continue to grow in the coming quarters.
The strong performance of HubSpot’s stock in the extended session was a sign that investors are becoming increasingly confident in the company’s ability to deliver strong results in the future. It is also a sign that the market is beginning to recognize the potential of the company’s software solutions.
Overall, HubSpot’s fourth quarter results showed that the company is well-positioned to continue to grow in the coming quarters. The strong performance of the stock in the extended session is a sign that investors are becoming increasingly confident in the company’s ability to deliver strong results in the future. This is likely to continue to be the case as the company continues to expand its offerings and capitalize on the opportunities presented by the current macroeconomic environment.
