What happened
Shares of HubSpot (HUBS -1.97%) are having a volatile trading day after the company reported first-quarter earnings results. The stock had gained as much as 2% at the open before dipping as much as 5%, and was down 3% as of 11:20 a.m. EDT. The company beat profit expectations and issued strong revenue guidance, but tech stocks have been under pressure for months.
So what
Revenue in the first quarter increased 41% to $281.4 million, in line with Wall Street's forecast. That resulted in adjusted net income of $15.7 million, or $0.31 per share, which was better than the $0.29 per share in adjusted profits that analysts were modeling for. The customer relationship management (CRM) technology company ended the quarter with nearly 114,000 total customers.
Image source: HubSpot.
"We entered 2021 strong with the launch of Operations Hub and another quarter of tremendous growth across the business," Chief Customer Officer Yamini Rangan said in a statement. "We believe there's still a massive opportunity ahead as companies continue to adapt to doing business in a digital-first world."
Now what
HubSpot's guidance for the second quarter calls for revenue in the range of $293 million to $297 million, comfortably above the $278.3 million in sales that the market is looking for. Adjusted earnings per share should be $0.30 to $0.32, which is below the consensus estimate of $0.33 per share. The company is forecasting full-year revenue of around $1.24 billion, ahead of Wall Street's expectations of $1.17 billion.
