HubSpot (NYSE: HUBS) saw its stock price plummet 5.35% in after-hours trading on Thursday, despite reporting better-than-expected first-quarter results. The sharp decline suggests that investors are focusing on the company's forward guidance rather than its recent performance.
For Q1 2025, HubSpot reported impressive results with earnings per share of $1.78, surpassing the analyst consensus estimate of $1.76. This represents a 5.95% increase from the same period last year. Revenue also exceeded expectations, coming in at $714.14 million, beating the estimated $700.36 million by 1.97% and showing a 15.67% year-over-year growth. The company also reported growth in its customer base, which increased by 19% year-over-year to 258,258.
However, the after-hours sell-off indicates that the market is less optimistic about HubSpot's future prospects. The company provided guidance for the second quarter, projecting adjusted earnings per share between $2.10 and $2.12, which fell short of the consensus estimate of $2.13. For the full fiscal year 2025, HubSpot expects revenue in the range of $3.036 billion to $3.044 billion, with adjusted earnings per share between $9.29 and $9.37. While these figures represent an increase from previous guidance, they appear to have fallen short of investor expectations, leading to the post-earnings decline despite the Q1 beat.
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