HubSpot is a unique company that develops software for inbound marketing, sales and customer service. Actually, it is to her that we owe the appearance of the term “inbound marketing”. This technique involves attracting customers through useful and interesting content that will encourage consumers to be active themselves. In other words, this is the complete opposite of the ”traditional" approach: annoying advertising that can alienate potential customers.
High rates of revenue growth remain, despite the fact that its size has exceeded the $1 billion mark. However, investors should be vigilant: since the beginning of the year, shares have risen by 50%, noticeably ahead of their colleagues in the technology industry, whose securities are still lagging behind the dynamics of the S&P 500. The fundamental drivers are still strong, but most of the investors ' expectations, apparently, have already been included in the current prices.
The HubSpot product line is expanding. For example, in April, the Operations Hub service was launched, which became the first backoffice solution and the company's attempt to go beyond the field of marketing and sales.
According to the results of the first quarter, revenue increased by 41% y/y, to $281.4 million. Wall Street expected a figure of 33% y/y.The number of customers increased by 45% y/y, to 113.9 thousand, while 55% of this number use more than 1 product. From the negative side, it is worth noting the fact that the operating margin decreased by 70 basis points, to 6.7%.