Summary
- HubSpot provides a superior solution to online marketing and consistent sales growth over the long term.
- The company has a proven management team and a solid track-record of financial performance.
- HubSpot has plenty of room for growth by gaining new clients and by introducing new products over time.
- International markets are firing on all cylinders for HubSpot, and the business model is highly scalable.
- The stock is priced for growth, but it still should deliver attractive returns from current price levels over the long term.
- I do much more than just articles at The Data Driven Investor: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »
One of the most critical priorities for businesses of all kinds is implementing the right tools to attract customers and to sustain growth over the long term. HubSpot (HUBS) is the top player in inbound marketing software, a better and more effective approach to sustainable growth.
The company is expanding its ecosystems of services and solutions, while also attracting new customers and consolidating its competitive position over time. Financial performance is consistently strong, and HubSpot has abundant potential for growth in the years ahead.
A Better Approach To Growth
HubSpot is a founder-led business. The company's co-founders Brian Halligan and Dharmesh Shah are currently the company's CEO and CTO, respectively. Like many of the most successful businesses of our time, HubSpot was created when its founders realized that there was a better way to do things and to provide a superior solution to online marketing.
While being at graduate school at MIT, Brian Halligan and Dharmesh Shah realized that online marketing was often too intrusive and an unwelcome disruption to potential buyers. Unsolicited messages and calls or pop-up internet ads are clear examples of this uncomfortable approach to marketing.
Potential customers don't like these kinds of intrusions, and they tend to avoid them as much as possible. Even when the marketing message reaches the right destination, bothering your potential customers with information that they did not want to receive at that specific point in time is far from ideal.
Inbound marketing, on the other hand, means that the customer should seek the product or the service. By creating high-quality content, you start by giving your potential customer something that the customer wants to get and actually appreciates. This opens the door to a more productive and comfortable relationship with those customers, and it provides a more effective path to sustained growth.
HubSpot provides a suite of software solutions that helps companies generate better growth venues via marketing, sales, service, and the recently added content management system.
