HubSpot (NYSE: HUBS) saw its stock price plummet 8.23% in Friday's pre-market trading session, following a 5.35% drop in after-hours trading on Thursday. The significant decline comes despite the company reporting better-than-expected first-quarter results for 2025, suggesting that investors are more focused on the company's forward guidance.

For the first quarter of 2025, HubSpot exceeded analyst expectations with earnings per share of $1.78, surpassing the estimated $1.76. Revenue also beat forecasts, coming in at $714.14 million compared to the expected $700.36 million, representing a 15.67% year-over-year growth. The company also reported a 19% year-over-year increase in its customer base to 258,258.

However, HubSpot's guidance for the second quarter and full fiscal year 2025 appears to have disappointed investors. The company projected Q2 adjusted earnings per share between $2.10 and $2.12, falling short of the $2.13 consensus estimate. For the full year, HubSpot expects revenue between $3.036 billion and $3.044 billion, with adjusted earnings per share ranging from $9.29 to $9.37. While these figures represent an increase from previous guidance, they seem to have fallen short of market expectations, leading to the significant stock price decline.