inventory increased Friday after the software company customer relationship management published blowout results for the fourth quarter, triggers a plethora of analyst upgrades, rising price targets and general investor enthusiasm.
For the quarter
(ticker: HUBS) had sales of $ 252.1 million, a 35% increase over a year ago, and well ahead of the Wall Street analyst’s consensus of $ 236.7 million. Non-GAAP earnings were 40 cents per share, well ahead of the consensus of 23 cents.
HubSpot shares rose 17% on Friday to $ 504.29. The stock has quintupled from its declines in March 2020 at just under $ 100 per share.
The guidance also exceeded previous expectations. The company, which provides marketing, sales, content management and customer service software, had first-quarter revenue of $ 260 to $ 265 million, with GAAP-free earnings of 28 to 30 cents per share. The street consensus had been $ 245 million in revenue and earnings per share of 28 cents. For the full year, HubSpot sees revenue of $ 1.16 billion to $ 1.17 billion, with earnings of $ 1.51 to $ 1.59 per share, ahead of the previous Street forecast of $ 1.06 billion in revenue and $ 1.6 billion. $ 38 and profit share.
“During the quarter, we exceeded 100,000 total customers, and in December we passed $ 1 billion in annual recurring revenue – two major milestones that reflect our team’s determination and the strength of our customer relationships,” said CEO Brian Halligan in a statement.
The street is talking about the earnings report, which is in contrast to analysts’ expectations of disaster when the Covid-19 pandemic occurred last spring.
Mizuho analyst Siti Panigrahi raised his rating on Friday to Buy from Neutral, with a new target of $ 526, up from $ 360. The analyst writes that he had been worried about growth earlier in the year, but the quarter cleared his worries: ” 35% growth during the fourth quarter with guidance of 32% growth in 2021 against 30% growth in 2020 … has alleviated our concerns, ”he writes. “HubSpot is a significant benefit of an accelerated digital transformation trend and is implementing its product expansion strategy, which will help drive long-term sustainable growth and margin expansion.”
Raymond James analyst Brian Peterson raises his rating to Strong Buy from Outperform, with a new target price of $ 725, up from $ 365. “We simply cannot ignore our confidence in HubSpot’s product portfolio and market opportunities to modernize B2B sales operations, which should experience significant investment in the coming decade,” he writes.
Stifel analyst Tom Roderick writes that the company’s results were “nothing short of remarkable.”
“Think of this,” writes Roderick. “Back in March 2020, when it seemed like the SMB segment was heading straight from a cliff, HubSpot traded short below $ 100 per share … Instead of facing a long winter of SMB disease, HubSpot clicks on all cylinders. . ” He repeats his purchase rating and takes his target to $ 550, from $ 400.
Write to Eric J. Savitz at [email protected]