HubSpot Inc.'s stock (HUBS, +0.97%) saw a significant increase of over 6% in Wednesday's after-hours trading following the release of its impressive quarterly results and profit outlook for its cloud-based-software for customer relationship management.
Outstanding Financial Performance
In the third quarter, HubSpot reported a net loss of $5.5 million, or 11 cents per share, as compared to a loss of $31.4 million, or 65 cents per share, during the same period last year. However, on an adjusted basis, the company achieved earnings per share of $1.59, surpassing the FactSet consensus of $1.24. This showcases HubSpot's commitment to delivering exceptional financial results.
Impressive Revenue Growth
HubSpot experienced a substantial boost in revenue, with a total of $557.6 million in the third quarter, compared to $444.0 million in the previous year. Analysts had predicted revenue of $534.1 million, making HubSpot's revenue performance even more remarkable.
Customer Platform Resonates with Businesses
Yamini Rangan, the Chief Executive of HubSpot, expressed the success of their customer platform in a release, stating, "Our easy-to-use, easy-to-scale connected customer platform is deeply resonating with small- and medium-sized businesses as they look to optimize spend and boost productivity in this challenging environment." HubSpot's ability to provide practical solutions that help businesses navigate difficult times has clearly struck a chord with their target audience.
Positive Outlook for the Future
For the fourth quarter, HubSpot has forecasted revenue ranging from $556 million to $558 million, accompanied by adjusted earnings per share between $1.53 and $1.55. Analysts had earlier projected revenue of $557 million and earnings per share of $1.50, demonstrating a positive outlook for HubSpot's future performance.
HubSpot Inc. continues to prove its ability to exceed expectations and adapt to the evolving needs of its customers. With its impressive financial results and forward-thinking approach, HubSpot remains a leader in the cloud-based-software industry.