- The company has been able to grow at an incredible rate thanks to its freemium model.
- HashiCorp is one of many open source software (OSS) companies that are trying to monetize the possibilities of OSS.
- However, the company is deeply unprofitable and losses have been widening.
- The company operates in a vast, fast growing market with many competitors, and this has meant that the market has attracted many competitors, eroding the pricing power of players like HashiCorp.
- The company’s core business has a negative value and a conservative valuation of the company is way below what the market assigned to the company. In the long run, HashiCorp’s valuation will go the way of its declining and deeply negative return on invested capital.
For further details see:
HashiCorp Could Be The Worst IPO Of The Year