HubSpot (NYSE: HUBS) shares tumbled 5.36% in after-hours trading on Thursday, despite reporting better-than-expected first-quarter results. The sharp decline appears to be driven by the company's disappointing guidance for the upcoming quarter and full fiscal year 2025.
For the first quarter, HubSpot posted adjusted earnings per share of $1.78, surpassing the analyst consensus estimate of $1.76. This represents a 5.95% increase from the same period last year. The company's quarterly sales also beat expectations, coming in at $714.14 million, up 15.67% year-over-year and above the estimated $700.36 million.
However, investors seem more focused on HubSpot's forward-looking statements. The company provided guidance for the second quarter, projecting adjusted EPS between $2.10 and $2.12. For the full fiscal year 2025, HubSpot expects adjusted EPS in the range of $9.29 to $9.37 and revenue between $3.036 billion and $3.044 billion. These figures appear to have fallen short of market expectations, triggering the after-hours sell-off despite the strong Q1 performance.