HubSpot (NYSE:HUBS) announced third-quarter earnings that exceeded analysts’ expectations. As a consequence, shares surged more than 7% pre-market today.
The company posted an adjusted earnings per share (EPS) of $1.59, which significantly outperformed the Street estimate of $1.23. Revenue for the quarter was reported at $557.6 million, a 26% increase from the same period last year, and higher than the forecasted $533.9 million.
Subscription services generated $545.8 million in revenue, a 25% rise year-over-year, beating the $523.3 million prediction. The company also earned $11.7 million from professional services and other revenues, marking a 31% year-over-year increase and coming in above the $10.4 million estimate.
Looking ahead to the fourth quarter, HubSpot expects total revenue to be between $556 million and $558 million, with adjusted EPS ranging from $1.53 to $1.55. Street estimates stood at $560 million for sales and at $1.50 for adjusted EPS.
For the entire fiscal year, the company’s forecast suggests total revenue should be between $2.144 billion and $2.146 billion, with an adjusted EPS between $5.66 and $5.68. This projection surpasses Wall Street’s estimates of $2.12 billion in revenue and an adjusted EPS of $5.28.