HubSpot Beats Estimates, Raises Guidance, Shares Sink: The Details

Core Insights - HubSpot reported first-quarter revenue of $714.1 million, a 16% increase year-over-year, surpassing the consensus estimate of $700.4 million [1] - The company achieved earnings per share of $1.78, exceeding the consensus estimate of $1.76, and grew its customer base to 258,258, a 19% increase year-over-year [2] - HubSpot announced a new $500 million share repurchase program and ended the quarter with $2.2 billion in cash and cash equivalents [3] Financial Performance - First-quarter subscription revenue was $698.7 million, up 16% year-over-year, while professional services and other revenue reached $15.4 million, up 13% year-over-year [1] - Calculated billings for the first quarter were $766.8 million, reflecting a 20% year-over-year increase [2] - The average subscription revenue per customer decreased by 4% year-over-year to $11,038 [2] Future Guidance - For the second quarter, HubSpot projects revenue between $738.0 million and $740.0 million, representing a 16% year-over-year increase, with earnings per share expected to be between $2.10 and $2.12 [4] - The full-year revenue guidance was raised to a range of $3.036 billion to $3.044 billion, up from the previous range of $2.9 billion to $3.0 billion [4] - Full-year earnings per share guidance was also increased to a range of $9.29 to $9.37, up from the previous range of $9.11 to $9.19 [5] Market Reaction - Following the earnings report, HubSpot's stock declined by 7.63% to $610 in after-hours trading, with a 52-week trading range of $434.84 to $881.13 [6]