What Happened:
Shares of sales and marketing software maker HubSpot (NYSE:HUBS) jumped 5.5% in the after-market session after the company reported first-quarter results that exceeded analysts' billings, revenue, gross margin, free cash flow, and earnings per share (EPS) expectations. Customer growth also accelerated. In addition, management provided revenue and EPS guidance for the next quarter and full year above Consensus estimates. Overall, it was a strong quarter for the company on an absolute basis and relative to SaaS peers, some of which stumbled and called out a difficult macro environment.
What is the market telling us:
HubSpot's shares are very volatile and over the last year have had 54 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
HubSpot is up 57.2% since the beginning of the year. Investors who bought $1,000 worth of HubSpot's shares 5 years ago would now be looking at an investment worth $4,140.
Is now the time to buy HubSpot? Access our full analysis of the earnings results here, it's free.