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The Markets
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Hardware & electrical equipment

HubSpot stock pops as surging subscription revenue fuels big 4Q expectations beat

HubSpot Inc shares jumped Friday after the software company’s fourth-quarter results blew past analyst expectations.

The Cambridge, Massachusets-based company reported revenue of $469.7 million, up 27% from the fourth quarter of 2021 and well ahead of Street expectations of $445.6 million. Earnings were $1.11 per share, up 91% from a year earlier, and above expectations of $0.83.

Subscription revenue was $458.2 million, up 28% year-over-year, while professional services and other revenue was $11.5 million, up 8% year-over-year.

READ: Iris Energy to be ‘nicely profitable’ over next 12 months on operating basis as Bitcoin miner ramps up to 5-plus EH capacity, analysts say

Shares of HubSpot traded more than 10% higher at $398.13 Friday afternoon.

Additionally, the company also increased its guidance. For 2023, HubSpot forecast earnings between $4.24 and $4.32 per share, significantly above Street estimates of $2.85. The software maker expects revenue between $2.05 billion and $2.06 billion, in line with expectations.

Also worth noting, HubSpot recently cut 7% of its workforce.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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