HubSpot, Inc. (HUBS) - Not Worth All the Hubbub

• We are short shares of Hubspot Inc (HUBS US), an unprofitable SaaS company that, despite the recent downward re-rating of the tech sector, still trades at 20x forward revenue. HubSpot is not worth anything close to its current valuation.
• The company is a COVID beneficiary whose future growth will likely pale in comparison to its pandemic-fueled pull-forward in sales. Its expensive products face an increasing plethora of dramatically lower-priced and often superior alternatives, backed by billions of dollars of free-flowing venture capital. Top executives are selling shares and departing.
• Naturally, HubSpot doesn’t turn a profit. Should it ever try to, its margins will likely disappoint.

Table of Contents

• COMPANY BACKGROUND
• HUBSPOT IS PERSISTENTLY UNPROFITABLE
• HUBSPOT’S PRODUCTS ARE NOTHING SPECIAL
• CAPITAL HAS BEGUN TO FLOW RAPIDLY INTO HUBSPOT’S COMPETITORS
• HUBSPOT LEADERSHIP IS IN FLUX AND HAS STEADILY SOLD STOCK
• CONCLUSION