HubSpot shares fell in after-hours trading on Wednesday despite the customer relationship management platform provider posting a second quarter earnings beat and raising its full-year guidance.
For 2Q, the company said its revenue rose 25% year-over-year to $529.1 million, above the consensus analyst expectation of $504.5 million, according to Zacks Consensus Estimate.
Subscription revenue rose 26% to $517.7 million, above the expected $492.4 million, and professional services and other revenue was $11.5 million, topping the Zacks forecast of $11.4 million.
Adjusted earnings per share (EPS) was $1.34, up from $0.44 in the year-ago quarter and ahead of the consensus analyst forecast of $0.99.
“We had another solid quarter and I’m pleased with the continued momentum we have in becoming the platform of choice for scaling companies,” HubSpot CEO Yamini Rangan said in a statement.
“Our teams are driving the pace of product innovation, iterating fast with AI while executing on our bi-modal strategy, despite a still challenging macroeconomic environment. This focus and alignment is what will continue to set us apart to drive durable and profitable growth over the long term.”
The company also raised its full-year 2023 revenue guidance to a range of $2.116 billion to $2.122 billion from a range of $2.080 billion to $2.088 billion projected at the end of the first quarter.
It also boosted its income expectation to a range between $293 million and $297 million, up from its prior guidance of $275 million to $279 million.
EPS is now expected to be in the range of $5.24 to $5.29 up from the prior expectation of EPS between $4.80 and $4.85.
But the beat and raise didn’t satisfy investors, with HubSpot shares falling 4.9% to US$526 shortly after the release of its earnings.
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