"What happened with HubSpot this quarter

• Total revenue climbed 38% year over to $97.7 million.
• HubSpot's core revenue driver -- subscription sales -- jumped 40% compared to the same time last year, reaching $93.2 million in the third quarter.
• Professional services and other revenue grew 12%, to $4.6 million.
• The company now has 37,450 customers, which is an increase of 47% from the year-ago quarter.
• HubSpot's total average subscription revenue per customer is now $10,332.
• The company's cash, cash equivalents, and investments at the end of the third quarter were $527.5 million.
• HubSpot generated $1.8 million of free cash flow, compared to $1.5 million the same time last year."

HubSpot Content Strategy is an SEO and content tool with an integrated growth methodology. As a result, the platform has several unique features, including:

Organize Content Into Topic Clusters – Designed to help marketers organize their content process into topics and adapt to the way modern search words.
Content Recommendations – Content Strategy can recommend content ideas that marketers should create based on topics and subtopics.
Content Optimization – The tool aims to help marketers optimize individual pieces of content and the overall structure of an entire topic cluster. This involves surfacing optimization advice for thin content, low-quality inbound links, lack of links between a subtopic and pillar page and more.
Track The ROI Of Your Content – Content Strategy is designed to help marketers see how many leads and customers are being generated from each topic cluster so they can track the ROI of their content creation and overall strategy.

According to my valuation model, the stock is currently overvalued by about 95%, trading at $74.5 compared to my intrinsic value of $38.23. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that HUBS’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Scott Brinker, martech thought leader and editor of chiefmartech.com is joining HubSpot as the VP of Platform Ecosystem. In his new role, Scott will be tasked with growing and nurturing HubSpot’s technology partner community.
Scott’s hire comes at a time when HubSpot’s Connect Partner Program has grown to over 100 integration with new partners such as AdEspresso by Hootsuite, Terminus, AdRoll, and Brightcove.

Marketing and sales company HubSpot today announced it has acquired bot creation platform Motion.ai. Terms of the deal were not disclosed. The acquisition will bring bots to HubSpot’s more than 34,000 customers for the first time.

HubSpot’s best-known bot may be GrowthBot, which was made last year by CTO and cofounder Dharmesh Shah. The Motion.ai platform can currently be used to create bots for Slack and Facebook Messenger, and for chat on websites. Motion.ai has been used by brands like T-Mobile, Kia, Sony, and Wix.

HubSpot acquired Motion.ai because the company has come to understand the importance of providing customers with services that reach them on chat apps.

How do you go about getting those sales? HubSpot offers three distinct products called a "growth stack" for inbound marketing and lead generation. First, there's a free customer relationship management system that's free to anyone but is optimized for small to medium-sized businesses. HubSpot doesn't explicitly say so in marketing the online software -- everything HubSpot offers is browser-based, in the cloud -- but it appears designed to entice would-be customers of its premium products, which include a sales tracker and its signature marketing suite, which including everything from blogging software, to social-media marketing tools, to search engine optimization, so the right content gets in front of the right people at the right time.

As a company, HubSpot emphasizes the marketing suite because customers who have success pay more in terms of subscription fees.

HubSpot announced it has launched a new tool designed to help content marketers identify and validate topics that align with their prospects’ search and buying habits.

The solution, called HubSpot Content Strategy, leverages a new topic-based model on creating content that meets SEO objectives, as well as positions marketers to drive more traffic.

The company stated that the tool can also help marketers:

Optimize existing content and build clusters that help increase authority and organic traffic;
Serve search engines better information and content; and
Track content engagement (views and clicks), as well as the contacts and customers being generated by each topic cluster, to identify points of interest for prospective buyers.

While ideally the debt-to equity ratio of a financially healthy company should be less than 40%, several factors such as industry life-cycle and economic conditions can result in a company raising a significant amount of debt. HUBS’s debt-to-equity ratio stands at 142.30%, which means that it is a highly leveraged company. This is not a problem if the company has consistently grown its profits. But during a business downturn, availability of cash may dry up, making it hard to operate.



A different measure of financial health is measured by its short-term obligations, which is known as liquidity. These include payments to suppliers, employees and other stakeholders. If an adverse event occurs, the company may be forced to pay these immediate expenses with its liquid assets. In order to measure liquidity, we must compare HUBS’s current assets with its upcoming liabilities. Our analysis shows that HUBS is able to meet its upcoming commitments with its cash and other short-term assets, which lessens our concerns for the company’s business operations should any unfavourable circumstances arise.

Hubspot, Inc. HUBS reported revenues of $89.1 million, showcasing a year-over-year increase of 37.1% in second-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $86 million as well as the guided range of $85-$86 million. 

The year-over-year growth in revenues can be primarily attributed to the growing customer base. Total customers increased 40% year over year to 34,326. Marketing customers increased 30% to 26,560. 

Average subscription revenue per customer was up 6.6% year over year to $12,773. The company continues to witness rapid adoption of its $50 per month marketing starter product, but we believe this will hurt the average subscription revenue per customer in the near term.

Inbound marketing and sales company HubSpot has acquired Kemvi, a fledgling startup that uses artificial intelligence (AI) and machine learning to automatically extract information from websites, press releases, blog posts, and SEC filings in order to serve sales reps key insights into prospects. Terms of the deal were not disclosed.

Indeed, the company’s DeepGraph engine targets B2B companies with learning algorithms that can extract meaningful information and insights from any piece of digital text and then merge that with data and knowledge from companies’ own internal sales and marketing teams to forecast buyers’ behavior.

Terry Tillman with SunTrust RobinsonHumphrey today initiated coverage on 13 different cloud software companies, assigning ten of them a Buy rating, including Salesforce.com (CRM), arguing you should look for “category killers,” whose business is “positioned to become verbs in their markets."

Tillman argues cloud software in general provides “attractive exposure to high growth opportunities” and that “20%-plus growth” in revenue can keep up for a while for these names, on average.

The other nine Buys are Blackline (BL), Everbridge (EVBG), RingCentral (RNG), HubSpot (HUBS), Instructure (INST), Q2 Holdings (QTWO), Ultimate Software (ULTI), Upland Software (UPLD), and Workiva (WK); Tillman’s three Hold-rated names are Manhattan Associates (MANH), Paylocity (PCTY), and Shopify (SHOP).

HubSpot, a provider of software products for inbound sales and marketing teams, has announced that it will be combining its CRM with the Sales Navigator of LinkedIn. This will allow the features of the Sales Navigator to be stored inside the company records and contact list in HubSpot CRM.
LinkedIn Sales Navigator is a tool for social selling and is one step ahead of the LinkedIn networking platform. It is a paid tool, and as a result, has a separate interface and parallel features. The features include an activity stream that combines updates and news from companies and individuals. The advanced search mechanism allows sales people to locate outreach, a separate messaging system, and more.

TwentyThree, the leading video marketing automation platform, announced an innovative cooperation with leading inbound marketing and sales platform — HubSpot. The new partnership would seamlessly bring video and marketing automation together.

In the end, you can't go wrong with either of these tools. They're both excellent and capable of helping you accomplish even the most complex marketing automation processes. However, because of HubSpot's tiered pricing, which lets users begin accessing the tool at the early stages of their email marketing journey, it's the more prudent buy. Additionally, HubSpot's unique features, its email editor, its ability to log VoIP calls through CRM, and its comprehensive list of templates, gives it a slight advantage over Pardot's own impressive set of unique features. This is why I recommend HubSpot over Pardot.

However, if a tool's UI is the most important aspect of your software-buying decision or if you're a heavy Salesforce user who wants to stay locked into that data ecosystem, then there's no reason not to test Pardot. It's a powerful and attractive tool that will help you get the job done. Winner: HubSpot.

For larger businesses with deep pockets and the need to integrate with a lot of the different apps that are available in the Salesforce marketplace, Salesforce is a great tool. However, for smaller businesses that don’t have thousands of contacts (or are already on HubSpot’s inbound marketing platform), the HubSpot CRM is the easier, more affordable solution.

"While they have about a dozen sites over the years, it appears that there are 3 critical websites key to HubSpot’s online marketing strategy.

• HubSpot.com
• Inbound.org
• WebsiteGrader.com

The bulk of their traffic is from inbound marketing, primarily through organic search. However, they are are also spending money on paid search ads. Their blog post CTAs and ads are driven to landing pages with a very basic level visual design, short form copy and a full lead form.

On their landing pages they offer hundreds of different lead gen incentives (to match their blog article content and the searcher’s intent) in exchange for a full lead. Beyond the lead they sell inbound marketing software for a subscription fee based on their customers number of CRM contacts."