Shares of HubSpot (NYSE:HUBS) rose more than 5% in after-hours trading Wednesday in the wake of the company’s FQ4 report, beating Wall Street’s expectations for earnings and revenue.
The software maker posted earnings per share (EPS) of $1.83, topping the consensus projection of $1.54. Revenue came in at $581.9 million, while analysts anticipated $558.46 million.
The company's subscription revenue surged 24% year-over-year to $570.2 million in the quarter.
Moreover, HubSpot reported an improvement in its non-GAAP operating margin, which stood at 16.9% in Q4, up from 13.6% in the same period last year.
Looking forward, HubSpot expects its FQ1 2024 EPS to be in the range of $1.48 to $1.50, compared to the projected $1.49. Revenue is anticipated to be between $596 million and $598 million, which is ahead of the consensus forecast of $587.3 million.
For the full year 2024, HubSpot anticipates an EPS of $6.86 to $6.94, beating the analyst estimates of $6.62. The company sees FY revenue landing between $2.55 billion and $2.56 billion, also exceeding expectations of $2.53 billion.
“We saw a strong finish to a good year despite the challenging macro environment,” said Yamini Rangan, CEO of HubSpot.
“Our customers have high confidence in our ability to help them grow in any environment and we are becoming the clear platform of choice for scaling companies.
“As we look to 2024, we are doubling down on making HubSpot even easier to buy with a new seats-based pricing model.”