Top HubSpot earnings estimates. Google offer Still cooking?

HubSpot (HUBS) reported first-quarter earnings and revenue that beat analyst estimates, although forecasts were mixed. HubSpot shares rose on Thursday following a new report from parent company Google Alphabet (GOOGL) is considering taking over an internet marketing specialist.


Cambridge, Massachusetts-based HubSpot released its March results after the market closed on Wednesday. On Thursday, Bloomberg reported that talks with Google were progressing. Reports about the talks between Google and HubSpot first appeared on April 4.

On an adjusted basis, HubSpot’s earnings were $1.68 per share, up 40% from the prior year. Revenue rose 23% to $617.4 million, the internet marketing software maker said.

A year earlier, HubSpot’s earnings were $1.20 per share on sales of $502 million. Analysts expected HubSpot to earn $1.50 on sales of $598 million.

HubSpot Stocks: Mixed Guidelines

HubSpot shares initially fell in line with the June forecast. On today’s stock market, HubSpot shares rose 9.5% to nearly 646.

In HubSpot’s earnings report, the company’s stock is up 6% in 2024. Over the last year, HUBS shares are up 38%.

For the current quarter ending in June, HubSpot forecasts earnings per share of $1.63 at the midpoint of guidance and revenue of $618 million. Analysts predicted adjusted EPS of $1.57 on revenue of $623 million.

“HubSpot delivered a 23% gain, compared to the Street’s 19% gain, while the 2024 guide rose 1% to 19%,” TD Cowen analyst Derrick Wood said in the report. “That said, management noted more challenging macro conditions and some temporary pressures related to the new pricing model that were not initially expected.”

HubSpot’s marketing focuses on digital channels such as blogs, search engines, and social media. The company’s goal is to attract people to customers’ websites and optimize content so that visitors turn into paying customers.

HUBS stock had a relative strength rating of 85 out of a best-possible 99 on the earnings report, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.


Want to trade options? Here are the basics to get you started

IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today

Learn how to time the market with IBD’s ETF market strategy

Monitor IBD’s Breaking Out Today list for companies that have achieved new buy points