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🔎 I Teach Investors How To Analyze Businesses | Stock Fundamentals & Valuation Teacher | DM me “BUFFETT” for premium courses | Free Accounting eBook (Link) ⬇️

Jan 18, 2022, 12 tweets

$HUBS is a 14+ bagger since its 2014 IPO

Here's an overview of the company in 10 slides:

Hubspot pioneered "inbound marketing"

Its software helps companies to attract new customers by creating valuable content (blogs, videos)

This makes them easy to find online when their customers are searching for solutions to their problem

It has since expanded beyond marketing

HubSpot uses a freemium SaaS business model

The average subscription revenue per customer is $10,500

128,000+ paying customers (up 34%)

Primary moat is switching costs, though the brand is important too

Top-line growth has been very strong

It's losing money on a GAAP basis, but profitable on a Non-GAAP / FCF basis

Founders are still involved, but Halligan is no longer CEO

History of optionality & lots of operating leverage ahead

Long-term shareholders have been hugely rewarded (even after the recent drop)

Business risk is moderate

The valuation is very high (28x sales / 150x FCF)

Upselling, international expansion, & new customer additions remains a large opportunity for the business

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