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HubSpot

NYSE:HUBS
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HUBS
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Software
Company description

HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. The last earnings update was 37 days ago. More info.


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  • HubSpot has significant price volatility in the past 3 months.
HUBS Share Price and Events
7 Day Returns
0.2%
NYSE:HUBS
2.4%
US Software
1.2%
US Market
1 Year Returns
43.6%
NYSE:HUBS
25.6%
US Software
3%
US Market
HUBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HubSpot (HUBS) 0.2% 1.8% 46.4% 43.6% 275.4% -
US Software 2.4% 5.5% 19.8% 25.6% 110.4% 139.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • HUBS outperformed the Software industry which returned 25.6% over the past year.
  • HUBS outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
HUBS
Industry
5yr Volatility vs Market
Related Companies

HUBS Value

 Is HubSpot undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HubSpot to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HubSpot.

NYSE:HUBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HUBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (4.59%))
1.122
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.122 * 5.96%)
9.42%

Discounted Cash Flow Calculation for NYSE:HUBS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HubSpot is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HUBS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.42%)
2019 60.66 Analyst x13 55.44
2020 87.49 Analyst x13 73.08
2021 140.95 Analyst x2 107.60
2022 200.50 Analyst x2 139.89
2023 275.60 Analyst x2 175.73
2024 338.76 Est @ 22.92% 197.41
2025 395.88 Est @ 16.86% 210.85
2026 445.85 Est @ 12.62% 217.02
2027 488.89 Est @ 9.65% 217.49
2028 525.93 Est @ 7.58% 213.83
Present value of next 10 years cash flows $1,608.34
NYSE:HUBS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $525.93 × (1 + 2.73%) ÷ (9.42% – 2.73%)
$8,079.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,079.51 ÷ (1 + 9.42%)10
$3,284.96
NYSE:HUBS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,608.34 + $3,284.96
$4,893.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,893.31 / 41.17
$118.85
NYSE:HUBS Discount to Share Price
Calculation Result
Value per share (USD) From above. $118.85
Current discount Discount to share price of $168.66
= -1 x ($168.66 - $118.85) / $118.85
-41.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HubSpot is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HubSpot's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HubSpot's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HUBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.66
NYSE:HUBS Share Price ** NYSE (2019-03-20) in USD $168.66
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HubSpot.

NYSE:HUBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HUBS Share Price ÷ EPS (both in USD)

= 168.66 ÷ -1.66

-101.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HubSpot is loss making, we can't compare its value to the US Software industry average.
  • HubSpot is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does HubSpot's expected growth come at a high price?
Raw Data
NYSE:HUBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -101.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
19.1%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for HubSpot, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HubSpot's assets?
Raw Data
NYSE:HUBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $6.22
NYSE:HUBS Share Price * NYSE (2019-03-20) in USD $168.66
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:HUBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HUBS Share Price ÷ Book Value per Share (both in USD)

= 168.66 ÷ 6.22

27.09x

* Primary Listing of HubSpot.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HubSpot is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess HubSpot's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. HubSpot has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HUBS Future Performance

 How is HubSpot expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HubSpot expected to grow at an attractive rate?
  • HubSpot's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HubSpot's earnings growth is expected to exceed the United States of America market average.
  • HubSpot's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HUBS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HUBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 19.1%
NYSE:HUBS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 18.8%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HUBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HUBS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,470 406 57 3
2022-12-31 1,226 289 -18 3
2021-12-31 1,002 227 -50 5
2020-12-31 805 151 -66 20
2019-12-31 652 111 -72 21
NYSE:HUBS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 513 85 -64
2018-09-30 475 66 -64
2018-06-30 441 62 -56
2018-03-31 408 57 -47
2017-12-31 376 50 -40
2017-09-30 346 38 -42
2017-06-30 318 35 -42
2017-03-31 294 35 -43
2016-12-31 271 19 -46
2016-09-30 248 20 -42
2016-06-30 225 11 -45
2016-03-31 203 4 -45

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HubSpot's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • HubSpot's revenue is expected to grow by 18.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HUBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from HubSpot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HUBS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.39 1.39 1.39 1.00
2022-12-31 -0.44 -0.44 -0.44 1.00
2021-12-31 -1.11 -1.01 -1.21 2.00
2020-12-31 -1.66 -1.04 -2.09 12.00
2019-12-31 -1.82 -1.52 -2.36 13.00
NYSE:HUBS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.66
2018-09-30 -1.68
2018-06-30 -1.48
2018-03-31 -1.26
2017-12-31 -1.08
2017-09-30 -1.15
2017-06-30 -1.17
2017-03-31 -1.22
2016-12-31 -1.29
2016-09-30 -1.21
2016-06-30 -1.31
2016-03-31 -1.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HubSpot is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess HubSpot's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HubSpot has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HUBS Past Performance

  How has HubSpot performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HubSpot's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HubSpot does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare HubSpot's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare HubSpot's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
HubSpot's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HubSpot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HUBS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 512.98 -63.83 343.28 117.60
2018-09-30 475.50 -63.87 323.43 107.88
2018-06-30 441.40 -55.79 305.09 95.95
2018-03-31 407.92 -47.09 286.99 83.36
2017-12-31 375.61 -39.71 269.65 70.37
2017-09-30 345.52 -42.01 257.58 60.90
2017-06-30 318.38 -41.94 238.19 54.17
2017-03-31 294.26 -43.48 222.53 49.56
2016-12-31 270.97 -45.56 207.77 46.00
2016-09-30 247.65 -41.98 188.40 41.85
2016-06-30 224.77 -45.02 176.17 37.88
2016-03-31 202.74 -45.35 161.47 34.76
2015-12-31 181.94 -46.05 148.04 32.46
2015-09-30 162.97 -55.79 139.88 34.93
2015-06-30 145.71 -53.04 126.83 31.66
2015-03-31 129.87 -49.94 114.15 28.45
2014-12-31 115.88 -48.56 103.77 25.64
2014-09-30 104.10 -37.01 89.57 18.55
2014-06-30 93.83 -35.73 80.24 17.95
2014-03-31 85.07 -36.26 74.05 16.84
2013-12-31 77.63 -34.33 69.36 15.02
2012-12-31 51.60 -18.86 42.92 10.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if HubSpot has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if HubSpot has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if HubSpot improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess HubSpot's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HubSpot has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HUBS Health

 How is HubSpot's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HubSpot's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HubSpot is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HubSpot's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HubSpot's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HubSpot Company Filings, last reported 2 months ago.

NYSE:HUBS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 244.64 318.78 592.25
2018-09-30 229.41 313.55 561.29
2018-06-30 227.64 308.41 550.26
2018-03-31 221.10 303.36 529.41
2017-12-31 210.36 298.45 504.34
2017-09-30 208.54 293.56 491.87
2017-06-30 203.70 289.86 492.42
2017-03-31 124.34 1.08 122.79
2016-12-31 118.70 0.00 114.35
2016-09-30 122.16 1.01 113.99
2016-06-30 120.45 0.97 117.49
2016-03-31 120.95 0.93 107.65
2015-12-31 121.71 0.82 104.55
2015-09-30 124.17 0.61 104.51
2015-06-30 130.32 0.38 109.83
2015-03-31 139.21 0.15 136.09
2014-12-31 110.70 0.18 123.72
2014-09-30 -13.75 18.20 12.38
2014-06-30 -5.29 5.22 7.30
2014-03-31 1.11 0.25 7.97
2013-12-31 8.05 0.30 12.64
2012-12-31 38.03 0.11 41.10
  • HubSpot's level of debt (130.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (3.7% vs 130.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making HubSpot has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making HubSpot has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -106.6% per year.
X
Financial health checks
We assess HubSpot's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HubSpot has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HUBS Dividends

 What is HubSpot's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from HubSpot dividends. Estimated to be 0% next year.
If you bought $2,000 of HubSpot shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate HubSpot's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HubSpot's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HUBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HUBS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as HubSpot has not reported any payouts.
  • Unable to verify if HubSpot's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HubSpot's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HubSpot has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of HubSpot's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess HubSpot's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HubSpot afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HubSpot has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HUBS Management

 What is the CEO of HubSpot's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Halligan
COMPENSATION $3,173,838
AGE 50
TENURE AS CEO 14.2 years
CEO Bio

Mr. Brian Halligan Co-founded HubSpot, Inc. in 2005 and has been its Chief Executive Officer since 2005. Mr. Halligan served as Vice President of Sales of Groove Networks, Inc since 2000 until 2004. He worked as a Venture Partner at Longworth Ventures where he worked with many small businesses helping them build scalable sales and marketing machines. He has more than 10 years of experience selling software to enterprise customers worldwide. He served as Senior Vice President of enterprise sales for ECredit.com. Mr. Halligan held several sales management positions at Parametric Technology Corporation. His most interesting role at PTC was in starting the Pacific Rim organization while living in Hong Kong in 1993. During his eight-year career with PTC, he served extensively in international markets and eventually became Senior Vice President of the PTC's Pacific Rim organization, managing more than 300 employees. He has been Chairman of HubSpot, Inc. since March 2014 and its Director since 2005. He served as a Non-Executive Director of Fleetmatics Group PLC from March 18, 2014 to November 7, 2016. He serves as a Director of Massachusetts Innovation & Technology Exchange, Inc. He serves on the board of HOPe and is on the advisory board of Arena Solutions. He served as a Member of the Advisory Board of HubSpot, Inc. He is Occasional Lecturer at MIT Sloan on the science of selling. He was named an Ernst & Young Entrepreneur of the Year 2011 New England award recipient and co-authored Inbound Marketing. Mr. Halligan is also an author and a senior lecturer at the Massachusetts Institute of Technology. Mr. Halligan received a Bachelor of Science Degree in Electronic Engineering from the University of Vermont and an MBA from MIT Sloan School of Management, where he serves as a Senior Lecturer.

CEO Compensation
  • Brian's compensation has increased whilst company is loss making.
  • Brian's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HubSpot management team in years:

3.5
Average Tenure
50
Average Age
  • The tenure for the HubSpot management team is about average.
Management Team

Brian Halligan

TITLE
Co-Founder
COMPENSATION
$3M
AGE
50
TENURE
14.2 yrs

JD Sherman

TITLE
President & COO
COMPENSATION
$3M
AGE
53
TENURE
5 yrs

Dharmesh Shah

TITLE
Co-Founder
COMPENSATION
$1M
AGE
50

Hunter Madeley

TITLE
Chief Sales Officer
COMPENSATION
$2M
AGE
52
TENURE
2.9 yrs

Kathryn Bueker

TITLE
Chief Financial Officer
AGE
47
TENURE
0.8 yrs

Frank Auger

TITLE
Chief Information Officer
AGE
50
TENURE
3.4 yrs

Charles MacGlashing

TITLE
Director of Investor Relations

John Kelleher

TITLE
General Counsel & Secretary
COMPENSATION
$1M
AGE
53
TENURE
6.8 yrs

Kipp Bodnar

TITLE
Chief Marking Officer
TENURE
3.7 yrs

Andrew Lindsay

TITLE
Vice President of Corporate & Business Development
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the HubSpot board of directors in years:

2.9
Average Tenure
52
Average Age
  • The average tenure for the HubSpot board of directors is less than 3 years, this suggests a new board.
Board of Directors

Brian Halligan

TITLE
Co-Founder
COMPENSATION
$3M
AGE
50
TENURE
5 yrs

Dharmesh Shah

TITLE
Co-Founder
COMPENSATION
$1M
AGE
50
TENURE
14.2 yrs

Mike Simon

TITLE
Independent Director
COMPENSATION
$224K
AGE
53
TENURE
7.8 yrs

Ron Gill

TITLE
Independent Director
COMPENSATION
$235K
AGE
52
TENURE
6.8 yrs

Lorrie Norrington

TITLE
Lead Independent Director
COMPENSATION
$230K
AGE
58

Mark Roberge

TITLE
Advisor & Member of Advisory Board
TENURE
0.2 yrs

David Scott

TITLE
Member of Advisory Board
AGE
56
TENURE
0.2 yrs

Julie Herendeen

TITLE
Director
COMPENSATION
$219K
AGE
52
TENURE
2.9 yrs

Jay Simons

TITLE
Director
COMPENSATION
$228K
AGE
46
TENURE
2.2 yrs

Jill Ward

TITLE
Director
COMPENSATION
$117K
AGE
58
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Aug 18 Sell Hunter Madeley Individual 07. Aug 18 07. Aug 18 -5,600 $128.01 $-716,856
05. Jul 18 Sell Hunter Madeley Individual 02. Jul 18 02. Jul 18 -1,000 $124.95 $-124,950
X
Management checks
We assess HubSpot's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HubSpot has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HUBS News

Simply Wall St News

Have Insiders Been Selling HubSpot, Inc. (NYSE:HUBS) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in HubSpot, Inc. … HubSpot Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider sale was by Chief Sales Officer Hunter Madeley for US$717k worth of shares, at about US$128 per share.

Simply Wall St -

HubSpot, Inc. (NYSE:HUBS): What Are The Future Prospects?

The most recent earnings announcement HubSpot, Inc.'s (NYSE:HUBS) released in December 2018 … company earnings became less negative compared to the previous year's level

Simply Wall St -

Is HubSpot, Inc. (NYSE:HUBS) Excessively Paying Its CEO?

In 2005 Brian Halligan was appointed CEO of HubSpot, Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Brian Halligan's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Have Insiders Been Selling HubSpot, Inc. (NYSE:HUBS) Shares?

So we'll take a look at whether insiders have been buying or selling shares in HubSpot, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … HubSpot Insider Transactions Over The Last Year.

Simply Wall St -

How Much is HubSpot Inc's (NYSE:HUBS) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Brian Halligan's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that Brian Halligan takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

What does HubSpot Inc's (NYSE:HUBS) Balance Sheet Tell Us About Its Future?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as HubSpot Inc (NYSE:HUBS), with a market capitalization of US$4.96b, rarely draw their attention from the investing community. … Let’s take a look at HUBS’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Is It Time To Buy HubSpot Inc (NYSE:HUBS)?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on HubSpot’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Analysts Expect Breakeven For HubSpot Inc (NYSE:HUBS)

The company’s loss has recently broadened since it announced a -US$39.71m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$47.09m, moving it further away from breakeven. … I’ve put together a brief outline of industry analyst expectations for HUBS, its year of breakeven and its implied growth rate … HUBS is bordering on breakeven, according to Software analysts.

Simply Wall St -

Has HubSpot Inc (NYSE:HUBS) Improved Earnings Growth In Recent Times?

View our latest analysis for HubSpot How HUBS fared against its long-term earnings performance and its industry For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … NYSE:HUBS Income Statement Apr 22nd 18 We can further examine HubSpot's loss by looking at what the industry has been experiencing over the past few years. … Eyeballing growth from a sector-level, the US software industry has been growing its average earnings by double-digit 11.76% over the prior year, and 14.16% over the past five years.

Simply Wall St -

What Are Analysts Saying About HubSpot Inc's (NYSE:HUBS) Earnings Trajectory?

HubSpot Inc's (NYSE:HUBS) latest earnings update in December 2017 confirmed that losses became smaller relative to the prrior year's level - great news for investors Today I want to provide a brief commentary on how market analysts perceive HubSpot's earnings growth outlook over the next couple of years and whether the future looks brighter. … See our latest analysis for HubSpot Analysts' outlook for next year seems pessimistic, with earnings becoming even more negative, generating -US$67.91M in 2019. … The slope of this line is the rate of earnings growth, which in this case is -20.83%.

Simply Wall St -

HUBS Company Info

Description

HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. The company’s software platform includes integrated applications, such as customer relationship management, search engine optimization, blogging, Website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting. It also offers professional, as well as phone and/or email and chat based support services. It serves mid-market business-to-business companies. The company markets its products through inbound go-to-market approach, marketing agency, and sales partners. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Details
Name: HubSpot, Inc.
HUBS
Exchange: NYSE
Founded: 2005
$6,944,015,548
41,171,680
Website: http://www.hubspot.com
Address: HubSpot, Inc.
25 First Street,
2nd Floor,
Cambridge,
Massachusetts, 02141,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HUBS Common Stock New York Stock Exchange US USD 09. Oct 2014
DB 096 Common Stock Deutsche Boerse AG DE EUR 09. Oct 2014
LSE 0TZZ Common Stock London Stock Exchange GB USD 09. Oct 2014
Number of employees
Current staff
Staff numbers
2,638
HubSpot employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:50
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.