categories

HOT TOPICS

Subscribe to our Feed

Billion Dollar Unicorns: HubSpot on a Growth Trajectory

Posted on Thursday, Sep 6th 2018

A market research conducted last year expects the $34.3 billion MarTech market in the US and UK to grow 10% in 2018. While the market is dominated by players like Adobe Systems, Oracle, Salesforce, and IBM, there are other smaller Billion Dollar Unicorns like HubSpot that are making their presence felt.

HubSpot’s Financials

HubSpot (NYSE:HUBS) recently announced its second quarter results that continued to outpace market expectations. Revenues for the quarter grew 38% over the year to $122.6 million, ahead of the Street’s forecast of $117.6 million. It ended the quarter with a net loss of $18.2 million, or $0.48 per share compared with a net loss of $0.26 per share reported a year ago. Adjusted EPS was $0.18, compared with the Street’s forecast of $0.16.

By segment, revenues from subscription services grew 38% to $116.6 million. Professional and other services revenues grew 28% to bring in the remaining $6 million.

Among key metrics, it grew its total customer base by 40% to end with over 48,000 customers. Total average subscription revenue per customer declined 2% to $10,004 during the second quarter. Deferred revenues grew 38% to $153.8 million while calculated billings, defined as revenues plus the change in deferred revenues, grew 32% to $125.6 million.

For the current quarter, HubSpot expects revenues of $125.6-$126.6 million with an EPS of $0.03-$0.05. It expects to end the year with revenues of $496.8-$498.8 million with an EPS of $0.63-$0.67. The market was looking for revenues of $125 million for the quarter and $491.6 million for the year.

HubSpot’s Product Expansion

During the recent quarter, HubSpot announced the launch of Service Hub. Service Hub is part of HubSpot’s free CRM targeted to improve the customer experience. It is built for service teams and has been integrated into its Marketing and Sales Hubs so that all of the organizations’ front office teams — marketing, sales, and service — can share a single view of the customer. It also provides a chat capability for customers to interact with the organization, an automatically indexed knowledge base for self service, a ticketing system and a system for gathering customer feedback.

HubSpot is expanding its focus on the enterprise level customers with several upgrades. For instance, its Marketing Hub Enterprise upgrade will include customized bot building and improved analytics. Its Sales Hub Enterprise will include Sales Playbooks to help users build a library of best resources and practices for sales teams besides adding calling transcription, quota management tools, and eSignature.

Additionally, it is also integrating its Enterprise offerings with Slack, providing features such as advanced team management, machine learning, and AI-powered features including predictive lead scoring. It also launched HubSpot Video, a new service available across HubSpot platform that will allow video hosting, in-video calls-to-action, and a video creation tool to help marketers engage through video content.

The market is pleased with HubSpot’s performance. Its subscription base is already growing strong and is expected to maintain that pace given the significant product upgrades lined up for the year. Earlier this year, it expanded its AI capabilities through the acquisition of Motion AI. HubSpot plans to integrate Motion AI’s Chatbot building capabilities into the HubSpot platform to build tools to automate important tasks, scale conversations, and proactively engage and acquire new customers.

I would like to know from its users how they expect HubSpot’s upgrades to improve their experience. What additional features do they expect HubSpot to deliver?

HubSpot was venture funded till four years ago. It had raised $100.5 million in funding from investors including CRV, Altimeter Capital, Cross Creek Advisors, Dharmesh Shah, General Catalyst Partners, Brian Shin, Mike Volpe, Matrix Partners, Scale Venture Partners, Sequoia Capital, Google Ventures, and Salesforce.com. In October 2014, it raised another $125 million through its listing. It was valued at $759 million at the time of listing. Its stock is currently trading at $145.60 with a market capitalization of $5.6 billion. It had touched a 52-week high of $146.10 earlier this week. It has been climbing from the 52-week low of $71.00 that it was trading at almost a year ago.

More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion Dollar Unicorns.

This segment is a part in the series : Billion Dollar Unicorns


. How Marketo Is Faring In The Public Market
. Workday's Ramp to Multi-Billion Valuation
. ServiceNow's Expanding Market Opportunity
. Tableau's Valuation Increases to $6 Billion
. A Rare Media Venture Called Vice
. Will Box Implode Post IPO?
. Net-a-Porter Cracks The Luxury Fashion Market
. Outbrain Prepares for an IPO
. Palantir's Skyrocketing Valuation May Be Justified
. Online Education Player Lynda.com
. Pluralsight's Impressive Rise
. Snapchat Explores Revenue Generating Options
. Analysts Project Revenue for Pinterest
. The Market Awaits Etsy's IPO
. Taboola's Content Marketing Growth
. Egnyte Eyes IPO in 18 Months
. Web 3.0 and E-Commerce Investment Thesis of 3 VCs
. Cleversafe's Unique IP Strategy
. Cloud Investment Thesis of 5 VCs
. GoDaddy Shying Away from IPO, Yet Again
. Can Square Sustain Its Valuation?
. Zulily Tumbles
. MuleSoft Will Be Joining Soon
. Bootstrap First, Raise Money Later
. ShopClues in India Shows Unicorn Characteristics
. What Have You Learned?
. ASOS Shines From London
. Xiaomi Overtakes Samsung in China
. eClinicalWorks Bootstraps With A Paycheck
. Strategies From 5 Entrepreneurs
. Lending Club Focuses on Growth Post IPO
. Slack Speeds Its Way To The Mark
. Eventbrite Shies Away from an IPO
. Meituan Leads China's Group Buying Market
. Gilt Groupe Delays IPO
. Veeam Wants To Stay Private
. Nextdoor's Valuation Skyrocketing With No Sign of Revenues
. Stripe Exploring Tie-Ups for Growth
. HubSpot Sustains Solid Growth Post IPO
. Shazam Makes it to the Club
. OnDeck Scoring in Small Businesses Instant Loans
. Fat Startup Adaptive Insights Leading in Cloud CPM
. Cloudera Leverages Open-Source Hadoop to Create a Multi-Billion Dollar Business
. Evernote Cracks the Freemium Model
. Rocket Fuel Crashes on Results
. MongoDB Rises High on NoSQL Databases
. Shopify Preparing for an IPO
. JustFab Getting Ready for an IPO
. Kabam to Stay Private?
. Adyen Bootstraps to Multi-Billion Valuations
. RetailMeNot Worries About Mobile Monetization
. Elance-oDesk Taking on the Freelance World
. Farfetch Connecting Designers with Consumers
. The Impressive Story of Airpush
. athenahealth Enters the EHR Market
. Privalia Dominates the Latin America Markets
. Niche E-Commerce Works for Fanatics
. Powa Puts London on the Map
. RealReal Shows How to Consign Luxury Products
. Vancl On A Roller Coaster Ride
. Didi Dache is China's Uber
. Dafiti Leading E-Commerce in Latin America
. ServiceNow Expands Addressable Market
. Flipboard Focuses on Monetization
. Hootsuite Eyes an IPO
. GoodData Riding High on Big Data Analytics Market Growth
. Cheetah Mobile Part Of Chinese Contingent
. Hortonworks Needs To Deliver Results
. Clarabridge Wins by Analyzing Customer Sentiment
. Tableau Continues its Precise Execution
. Will Cloudera Sustain $5 Billion Valuation Post IPO?
. Freshdesk is a Prospect
. InMobi Wants to IPO in India
. Zendesk Targets the Live Chat Market
. New Relic Getting Ready to Battle with Microsoft
. Twilio is Revolutionizing Telecommunications
. Funding Circle is UK's Latest Entry to the Club
. Luxury Retailer Moda Operandi on the Club's Runway
. Splunk is Now Targeting the SMB Segment
. Capital-Efficient StartApp Is A Prospect
. AppNexus In The IPO 2015 Pipeline
. Druva Poised to Produce an Indian Unicorn
. MapR Readies IPO
. Lookout Getting Ready for an IPO
. Anaplan Gets Ready to Enter the Club
. Blue Apron Simplifies DIY Gourmet Cooking
. GoFundMe Bootstraps till the Half-Way Point
. Containers Gives Docker Entry into the Club
. Can Kaltura Be A Public Unicorn?
. The Ride-Sharing Industry Continues to Deliver Unjustifiable Valuations
. MarkLogic Making Waves in Enterprise NoSQL
. CloudFlare Offers Website Security over the Cloud
. Mixpanel Provides Advanced Analytics for SMBs
. Spotify Gearing up to Face Apple Music
. Auction.com in Expansion Mode
. Nutanix Gives VMWare Tough Competition
. Houzz Bootstraps in a Niche Space to Join the Club
. Rapid7 Delivers a Successful IPO
. Coinbase Tries To Capitalize on BitCoins
. Expect Acquisitions From ServiceNow
. Zendesk and Freshdesk in Expansion Mode
. Zulily Attempts to Make a Turnaround
. Etsy Continues to Fumble
. Lufax May be Risky, But Valuations Remain Lofty
. Will IBM Acquire FireEye?
. Mode Media Takes on Video Streaming
. New Relic Moves Deeper into Enterprise
. Delivery Hero Gets Multi-Billion Dollar Valuation for Food Delivery
. Splunk Beefs Up Cyber Security
. Garena Secures Singapore's Entry to the Club
. Dianping is Thriving in China with its Local Reviews Business
. Box Struggles in its Public Avatar
. Coupang Raises the Banner for South Korea
. InsideSales.com Bootstraps First, Raises Money Later
. Pinterest Eyes E-Commerce
. Klarna Takes the Risk out of E-Commerce
. VNG Grows While Remaining Focused on Vietnam
. Good, Bad and Ugly
. Sprinklr Rolls up Social Media Management Software Before IPO
. ContextLogic Marries Wish Lists to Vendors
. Beepi Disintermediates Used Car Dealerships
. Snapchat Experiments With Revenues
. Tanium Simplifies Cyber Security
. Avant is Revolutionizing Consumer Credit
. Adyen is on a Roll
. Apttus Ready for IPO
. ZScaler Takes Security to the Cloud
. Bullhorn is in the Making
. Sogou a Unicorn, But Yet to Find its Mojo
. Evernote Trying to Recover Lost Ground
. Modernizing Medicine Is A Prospect
. Instacart Looks Shaky
. Mogujie's E-Commerce Pivot Pays Off
. Zalando Takes the Lead in European Etail
. BlaBlaCar Expands Internationally with Acquisitions
. Square Files for IPO Below Last Round of Financing
. Secretive Infinidat Makes its Way to the Club
. FanDuel Creates a Billion Dollar Company out of Fantasy Sports
. Kabbage Latest Unicorn in Slowing Online Lending Sector
. Atlassian Now Prepping for a US Listing
. Match.com Looking to Court the Stock Market Now
. Ele.Me Shows Online-2-Offline Works
. Alteryx is a Prospect
. Machine Zone Translates Multi-Player Games to Multi-Billion Valuation
. ZocDoc Should Be Able To Withstand Public Market Scrutiny
. Thumbtack Joins the Ranks
. Beibei the Baby of the Club
. Online Lender SoFi Puts Off IPO Plans
. Warby Parker Joins the Club
. DraftKings Looks Worried as Fantasy Sports Come Under Scrutiny
. Tujia Offers Vacation Rentals in China
. Hortonworks Struggles to Stay in the Club
. Atlassian, A Legitimate One, Delivers A Great IPO
. Reconsider Your Aspirations
. Will Docker Sustain?
. Veeva Delivers Strong Fundamentals
. OfferUp Still Needs to Figure out Revenue Model
. Mozido Delivers Mobile Payment to Non-Banking Customers
. SimpliVity a Prospect
. WePiao Succeeds in Online Ticketing in China
. Uptake Joins the Club
. For Magic Leap, Unicorn Status No Longer Virtual
. Udacity Leans on Industry Giants for Monetization
. ForeScout Does Not Want To Go Public Yet
. ShopClues Joins the Club
. Age of Learning Monetizing in Educational Apps
. Square Post Its IPO
. Decolar is the Latin American Entry to the Club
. Japan's Mercari Joins the Club
. Yello Mobile Acquires its Way into the Club
. TutorGroup Enters the Club
. Souq.com the Middle East Entry to the Club
. WeWork Riding the Sharing Economy Wave
. Moderna Therapeutics A Promising, Unproven Bet
. GitHub Faces Growing Pains
. Africa Internet Group the First African Entry to the Club
. Paytm Plans Rapid Expansion
. Oscar Plans to Expand Its Network
. Razer Leads the Gaming Accessory Market
. GuaHao Targets China's Healthcare
. AUTO1 Group Plans International Expansion
. TransferWise Makes Money Transfer Simpler and Cheaper
. Ping An Good Doctor Is Largest Chinese Healthcare Unicorn
. MindMaze Channels Virtual Reality into Healing
. Driverless Car Startup Zoox Joins The Club
. Cylance Uses Machine Learning as Cyber Security Tool
. SMS Assist Brings a Lackluster Industry to the Club
. Unity Technologies a Strong VR Gaming Bet
. Square Eyeing Large Sellers
. Airbnb Continues to Soar
. Xiaohongshu Leverages Social Commerce to Join the Club
. iCarbonX Wants to Create a Digital You
. Liepin, China's Homegrown Recruitment Platform
. Hike is the Latest Entrant from India
. Go-Jek Hails its Way into the Club
. Quanergy Rides Into the Club
. Aiwujiwu Rides High on Chinese Real Estate Sector
. Zeta Interactive Counts on Inorganic Growth
. Line Delivers a Successful IPO
. Grab from Singapore is the Next Big One
. Didi Chuxing Monopolizing Chinese Ride-Sharing Market?
. Blippar Bets on Its Visual Browser
. Two Years Post the IPO, Globant Continues to Soar
. Nutanix Delivers a Strong Performance in the First Week of Listing
. Coupa Has a Successful IPO
. Online-to-Offline Focus Helps Huimin Enter the Club
. Real Estate Platform Compass Joins the Club
. LeSports Cashes in on Niche Video Streaming
. Flipkart's Valuation Bodes Unsteady Future
. Russian Avito Gearing up to go Public
. Guazi Leading the Chinese Online Used Car Market
. Slack Delays IPO to Next Year
. Sprinklr Acquiring to take on Big Brands
. Infor Accumulates ERP Providers to Build an Empire
. Royole Corporation Flexes its Way into the Club
. Rong360.com Joins the Club
. Stripe’s Skyrocketing Valuation
. Hulu Gears up to Stream Cable
. Nutanix Delivers Upbeat Performance, Stock Still Down
. Procore Joins the Club
. JetSmarter Flies Into the Club
. Opendoor Labs Opens the Door to the Club
. Neo Technology Takes Databases to the Next Level
. Kabam Struggles to Stay Alive
. Careem is the Latest Middle East Unicorn
. Huochebang is the Uber of Trucks in China
. SimpliVity Exits in HPE's Arms
. Kendra Scott Shows that Women CAN Build Unicorns
. Zhihu Imitates Quora to Build a Valuation Without Revenue Company
. Putting Flipkart's Struggles in Perspective
. BlackLine Continues to Grow Post IPO
. Global Switch Wants to be Leader in Data Centers
. AppDynamics Sold Before IPO
. MuleSoft Delivers Successful IPO
. Alteryx has a Successful IPO
. Airbnb is in no Rush to IPO
. Actifio Focuses on Profitability, not IPO
. In Uptake, Groupon Founder Shows He Has Learnt His Lesson
. Will Cisco buy Nutanix?
. Zoom Video Communications Enters the Club
. C3 IoT Joins the Club
. Robinhood Joins the Club
. Veeva Systems Executes Systematically
. Modernizing Medicine Crosses $100 Million Revenue Threshold
. Stripe is in no Rush to List
. Cloudera Fails to Keep the Market Happy
. Stitch Fix Delivers a Surprisingly Fresh Take on Shopping for Fashion
. Bill.com Has Scaled Quietly
. Toutiao Snags a Big Round, But Growth and Revenues Remain Tricky
. Taboola and Outbrain Exploring a Merger
. Looker Counts on Big Data Analytics
. Katerra Tackles the Construction Industry with Technology
. Peloton Cycles Into the Club
. Yello Mobile Delays IPO
. Kuaishou to Focus on AI
. Garena Files Privately in New Avatar
. Clover Health Reaches Milestone Valuation
. Careem Focused on MENA
. DraftKings Faces Hurdles
. Sales AI Startup Afiniti Considering IPO
. Ticket Monster To Invest In Groceries
. Yext Makes it to the Club and on the Exchange
. Rubrik Gears up to go Public
. Pinterest Delays its IPO Plans
. Valuation Without Revenue Nextdoor Trying to Monetize
. Delivery Hero Goes Public Albeit Huge Losses
. Newly Public Redfin Wants to be the Amazon of Real Estate
. VIPKid is the Newest Kid in the Club
. Nutanix Making a Comeback
. Fanatics now Eyeing Asia
. Valuation for Unity Technologies Keeps Soaring
. AvidXchange Eyeing IPO
. AppDirect Cashes in on Cloud
. Ele.me Consolidates Market, but Profits Elusive
. Valuation for WeWork Continues to Soar
. CrowdStrike Joins the Club
. TransferWise Turns Profitable
. Is Cybereason the Next Cyber Security Company to get Acquired?
. Yuanfudao, China's First EdTech Unicorn
. Coupa Close to 52-Week High
. What Are AUTO1's Margins?
. Is Houzz's Valuation Justified?
. Apttus Eyeing an IPO
. Atlassian Hits a New High
. Proofpoint Expands Product Offerings to Gain Market Share
. FireEye Struggling To Keep Up
. Forescout Finally Lists
. Indian Small Town Marketplace ShopClues Looks Shaky
. Profitable Qualys Hits a New High
. Microvast Charges into the Club
. HelloFresh Lists Successfully
. Zscaler Getting Ready for IPO
. New Relic at a 52-Week High
. Rong360 Goes Public on NYSE as Jianpu
. 23andMe in High Gear
. Kabbage Mulling Over an IPO
. Reddit is in No Rush to Go Public
. Grab Becomes the Most Valuable Startup in Southeast Asia
. Talend Going Strong Since Listing
. Stitch Fix Is Worth Celebrating
. No Stable Revenue Model in Sight, but Quora Usage Still Growing Rapidly
. Splunk Outpaces Market Expectations
. Razer IPO - Yet Another Story of a Non-Profit Stock
. Roku Streams a Successful IPO, for Now
. CarGurus Bootstraps its Way to an IPO
. Competition Heats up for Slack
. SoFi Delays IPO Plans
. Improbable Joins the Club
. Why Cloudera Continues to Stumble
. Can MongoDB Sustain Unicorn Status?
. Can Okta Sustain its Valuation?
. Is Stitch Fix the Next Blue Apron?
. Atlassian is Doing Everything Right, But is it Too Expensive?
. How Does Domo's Valuation Compare with Tableau's?
. Is the Duopoly Keeping AppNexus from Listing?
. Why Doesn't Adyen Want to Go Public?
. Will Zuora be able to Compete with Oracle?
. Will DocuSign Cave in to Potential Buyers?
. Should Xiaomi List at a $50B+ IPO Valuation?
. What is Marketo's Roll-up Strategy?
. Will Apptio Expand Internationally?
. What is Anaplan's Product Strategy?
. Will Apttus Take the Plunge?
. How Will Nutanix Control Dell?
. Does New Relic Plan to Consolidate the APM Market?
. What is Coupa's Next Acquisition?
. Will Medallia Help Consolidate?
. How Will Ellie Mae Handle Looming Mortgage Worries?
. Will Zoom Go Public or Get Acquired?
. Is GoodData Ready to Go Public?
. Will a Sales Strategy Change Help Cloudera?
. Can Splunk Sustain its Price Point?
. Can Fortinet Get to $10 Billion in Revenue?
. What Other MarTech Startups Will HubSpot Acquire Next?
. What is Okta's Inorganic Growth Narrative?
. What Will Atlassian Acquire Next?
. Will C3 IoT Look to Acquire a few Indian Startups?
. Is Microsoft Planning to Buy InsideSales?
. BlackLine Striking Powerful Partnerships
. How Will GitHub Reach Its Billion Dollar Revenue Target?
. Fitbit Struggles to Stay Relevant
. Squarespace is Willing to Wait Patiently For an IPO
. Adyen Ready for an IPO
. Pinterest Revenues Jump 58%
. Airbnb Delays IPO Plans, Again
. Box Continues to Grow, But Profits Still Absent
. Zscaler is the Top US Tech IPO of 2018
. How Will Dropbox Position in Collaboration?
. Smartsheet Goes Public but Profits Appear Distant
. Everbridge Continues to Soar
. Pluralsight Goes Public
. Cornerstone OnDemand Faces Intense Competition
. SurveyMonkey Finally Files to Go Public
. Is Affirm Overvalued?
. Five9 Predicts its Acquisition in the Future
. DocuSign Impressive Post IPO
. AppNexus Found An Exit
. Avalara Delivers a Strong IPO
. MongoDB Post IPO Review
. Nutanix Focuses on Software
. What Should RingCentral Acquire?
. Okta Delivering Decisive Growth Post IPO
. Is Palantir Losing Valuation?
. New Relic's Enterprise Focus Pays Off
. Will Coupa Remain Independent?
. Elastic Files to go Public
. Atlassian Teams up with Slack to go Lean
. Discord Going Strong
. Is Stripe Ready to List?
. BlackLine Looks at International Markets
. Yitu Cashes in on China's Growing Surveillance Market
. Nubank is Latest LatAm Unicorn
. Revolut Looks to Expand in the US
. Circle Soars With New Products
. NuCom Banking on Omni-Channel
. Babytree Prepares to Go Public
. Talend Strengthens Ties with Microsoft
. Twilio Shatters all Market Expectations
. HubSpot on a Growth Trajectory
. Rapid7 to Focus on Profits in Fiscal 2019
. Cloudflare Targets Enterprises
. Byju's is India's First EdTech Unicorn
. FireEye Targets a Profitable Year
. Sonos Stock Does Not Like the Sound of its Earnings
. DoorDash Enters the Club Mired in Controversy
. Swiggy Enters the Club with Massive Funding
. Should Oracle Buy MongoDB?
. Okta Faces Tougher Competition from Cisco
. Upwork Finally Goes Public
. Profitable PolicyBazaar Focuses on Health, Delays IPO
. Smartsheet Delivers High Growth, But No Profits
. Grab Gives Uber a Ride out of Southeast Asia
. Gusto Gets Fresh Round of Funding for Growth
. How will Paytm Navigate Rising Competition?
. DocuSign Growing Through Acquisitions
. WalkMe's Enterprise Focus Pays Off
. Indian B2B Marketplace Udaan Flies In
. Atlassian Prepares to Take on ServiceNow
. Dataminr Joins the Club

Hacker News
() Comments

Featured Videos