HubSpot shares moved lower in early trade on Thursday after the customer relationship management (CRM) platform provider’s guidance fell short of Wall Street’s expectations.
For the first quarter, HubSpot projected revenue in the range of $596 million to $598 million and adjusted earnings per share (EPS) of $1.48 to $1.50, below estimates of $615.2 million and $1.52 respectively.
For 2024, HubSpot expects revenue in the range of $2.55 billion to $2.56 billion compared to estimates of $3 billion and adjusted EPS of $6.86 to $6.94, short of the $7.88 expected.
The company's full-year 2023 results also disappointed investors. It posted adjusted EPS of $6.16 on revenue of $2.17 billion, below expectations of $6.47 and $2.53 billion.
However, the company’s 4Q results were better than expected.
Revenue for the three months that ended December 31, 2023, increased 24% year-over-year to $581.9 million, above estimates of $557.5 million.
This included a 24% increase in subscription revenue to $570.2 million and 2% growth in professional services and other revenue to $11.7 million.
Adjusted EPS was $1.76, compared to $1.11 in the year-ago quarter and ahead of estimates of $1.54.
“We saw a strong finish to a good year despite the challenging macro environment," HubSpot CEO Yamini Rangan said in a statement.
“As we look to 2024, we are doubling down on making HubSpot even easier to buy with a new seats-based pricing model. We have clear momentum in a large market, our pricing evolution will allow us to acquire and serve more customers, and the pace of product innovation will help us achieve our goal of becoming the #1 AI-powered customer platform for scaling companies."
HubSpot shares traded lower in early trade on Thursday, down 0.6% at $625.93.