Lynch Picks: Buy HubSpot (HUBS)
Despite not being well-known, $HUBS has revolutionized the field of conventional marketing. The company reversed the process, luring people in with a mix of blog articles, social media campaigns, virtual events, and search engine optimization (SEO), in a technique known as inbound marketing instead of pursuing them with intrusive and annoying advertising. This formed the cornerstone of the business's software-as-a-service (SaaS) offering portfolio, allowing it to broaden its cloud-based services to cover all aspects of customer relationship management (CRM).
Despite a 35% increase in revenue and adjusted net income for the first nine months of 2022, the stock price of HubSpot is down nearly 50% YTD. This is in contrast to the clientele of the business, which has been growing rapidly and was up 24% year over year in the third quarter. Furthermore, as users continued to deepen their connection with HubSpot, the average revenue per client rose by 7%.
The company's rapidly expanding total addressable market (TAM), which management anticipates will surpass $72 billion by 2027, is even more intriguing. With $1.3 billion in projected revenue for the entire 2021 fiscal year, the corporation faces a challenging but potentially fruitful future.
Source: Yahoo Finance