HubSpot (NYSE: HUBS) saw its stock price plummet 5.36% in after-hours trading on Thursday, despite reporting better-than-expected first-quarter results. The sharp decline suggests that investors may be focusing on the company's forward guidance rather than its recent performance.

The company reported impressive Q1 results, with earnings per share of $1.78, surpassing the analyst consensus estimate of $1.76 by 1.14%. This represents a 5.95% increase from the same period last year. Revenue also exceeded expectations, coming in at $714.14 million, beating the estimated $700.36 million by 1.97% and showing a 15.67% year-over-year growth.

However, the after-hours sell-off indicates that the market may be less optimistic about HubSpot's future prospects. The company provided guidance for the second quarter, projecting adjusted earnings per share between $2.10 and $2.12. For the full fiscal year 2025, HubSpot expects revenue in the range of $3.036 billion to $3.044 billion, with adjusted earnings per share between $9.29 and $9.37. It's possible that these figures fell short of investor expectations, leading to the post-earnings decline despite the Q1 beat.