Proactive Investors - Hubspot reported third quarter earnings that topped analyst estimates and guided sales and profits above expectations for the December quarter, sending its shares more than 9% higher in afterhours trade on Wednesday.
Shares of the customer relationship management (CRM) platform provider added 9.1% at US$482.50 on its results.
For 3Q, Hubspot reported revenue of $557.6 million, more than $20 million more than the $533.7 million expected by Wall Street analysts.
Subscriptions revenue rose 25% to $545.8 million and professional services and other revenue increased 31% to $11.7 million.
It also grew its adjusted income from $35.1 million or $0.73 per share to $83.4 million or $1.67 per share, above the consensus analyst estimate of $1.23.
For its fourth quarter ending December 2023, it forecast sales in the range of $556 million to $558 million, above the analyst estimate of $555.5 million.
It expects adjusted earnings per share in the range of $1.53 to $1.55, above the Street forecast of $1.49.
"We had another quarter of strong momentum, driven by the team’s focused execution and rapid product innovation as we make progress towards becoming the #1 customer platform for scaling companies," Hubspot CEO Yamini Rangan said in a statement.
“Looking ahead, we will remain focused on driving outsized value for our customers to drive durable and profitable growth for many years to come.”
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