Shares of HubSpot (NYSE: HUBS) rose on Wednesday after the inbound marketing software provider reported its second-quarter results. HubSpot beat analyst estimates for both revenue and earnings, and it raised its full-year guidance. The stock was up about 9.6% at 11:55 a.m. EDT.
HubSpot reported second-quarter revenue of $163.3 million, up 33% year over year and about $6 million higher than the average analyst estimate. Subscription revenue accounted for most of the company's revenue, growing by 34% year over year to $155.9 million. Revenue from professional services was $7.4 million, up 23%.
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Non-GAAP (adjusted) earnings per share came in at $0.37, up from $0.18 in the prior-year period and $0.12 better than analysts were expecting. On a generally accepted accounting principles (GAAP) basis, HubSpot posted a net loss of $0.41 per share, up from a net loss of $0.48 per share in the prior-year period.
HubSpot's total customer count jumped to 64,836, up 35% from the second quarter of 2018. Subscription revenue per customer was down 1% to $9,913.
For the third quarter, HubSpot expects to produce revenue between $168 million and $169 million, along with non-GAAP EPS between $0.22 and $0.24. For the full year, the company expects revenue between $663 million and $665 million and non-GAAP EPS between $1.39 and $1.41.
That full-year guidance is higher than the company's outlook following its first-quarter report. The company previously guided for revenue between $655.5 million and $658.5 million and non-GAAP EPS between $1.26 and $1.30.
"Our suite product play is delivering a ton of value for customers and our platform flywheel play is gaining serious momentum among integration partners and our expanding user base," said HubSpot CEO Brian Halligan in prepared remarks included in the earnings release.
With HubSpot easily beating analyst expectations and boosting its full-year guidance, investors were more than willing to bid up the stock.
This article was originally published on Fool.com