2024-03-14 08:02:08 ET
Summary
- HubSpot beats Q4 FY23 earnings and revenue growth estimates but remains overvalued at current levels.
- The company continues to add customers at a robust pace, driven by robust product innovation and a bimodal go-to-market strategy.
- However, net retention rate is slowing, as the company hikes prices and macroeconomic risks persist, raising concerns about future growth prospects.
Introduction and Investment Thesis
On February 6, 2023, I initiated a "sell" rating on HubSpot ( HUBS ). I had outlined that my bear thesis was predicated on the fact that the company's valuation was outstretched given macroeconomic uncertainties and a ferociously competitive landscape....
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HubSpot's Valuation Is Still Not Justified, Although Fundamentals Are Strong