HUBS

HubSpot Inc

TMT


Presented:04/21/2023
Price:$423.85
Cap:$20.93B
Current Price:$548.21
Cap:$28.15B

Presented

Date04/21/2023
Price$423.85
Market Cap$20.93B
Ent Value$13.50B
P/E RatioN/A
Book Value$20.16
Div Yield0%
Shares O/S49.39M
Ave Daily Vol693,705
Short Int3.75%

Current

Price$548.21
Market Cap$28.15B
HubSpot, Inc. engages in cloud-based customer relationship management. Its platform includes marketing, sales, service, operations and content management system, as well as other tools, integrations and a native payment solutions. It operates through the following geographical segments: Americas, Europe and Asia Pacific. The company was founded by Brian Patrick Halligan and Dharmesh Shah on April 4, 2005, and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: Freshworks Inc (FRSH), HubSpot Inc (HUBS), Monday.com Ltd (MNDY)

Highlights

The presenter is short shares of HubSpot Inc (HUBS), viewing it as the most attractive play on his thesis that we are in a corporate IT down cycle. This thesis is supported by recent data points and his own channel checks. To gain asymmetric exposure to this outlook, he was focused on enterprise software, believing enterprise software valuations are still on the richer side while companies across the rest of the market have already traded down. Within enterprise software, he sees HUBS fitting this mold with continued robust topline growth needed to support the still-demanding valuation, thus offering good risk/reward for a short position. While the short may lack a visible catalyst given that the company has managed expectations well (i.e., next quarter earnings may not disappoint), he views this as a “this year” thesis and sees downside to numbers in the back half of the year and into 2024. 

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Idea Discussion

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