Balance sheet analysis
HubSpot’ s total assets were $3.07 billion and $2.55 billion as of December 31, 2023 and as of December 31, 2022.
Cash and cash equivalents were $388 million as of December 31, 2023, accounting for 12.6% of total assets.
Short-term investments were $1 billion as of December 31, 2023, consisting of 32.6% of total assets.
Total current assets were $1.87 billion as of December 31, 2023, making up 61% of total assets.
Total current liabilities were $956 million as of December 31, 2023.
The current ratio was 1.86, which indicate that current assets covered current liabilities 1.86 times for 2023.
Total liabilities was $1.75 billion as of December 31, 2023.
The amount of total current assets is lightly higher than that of total liabilities in 2023.
HubSpot’ s balance sheet was rather healthy.
Profitability analysis
HubSpot’ s total revenue was $2.17 billion, $1.73 billion and $1.3 billion in 2023, 2022 and 2021, respectively.
Total revenue in 2023 was up 25.4% year-on-year.
Total revenue in 2022 was up 33% year-on-year.
Loss from operations was $208 million, $109 million and $54.8 million in 2023, 2022 and 2021, respectively.
Cash flow analysis
Stock-based compensation was $432 million, $276 million and $167 million in 2023, 2022 and 2021, respectively.
Net cash provided by operating activities was $351 million, $273 million and $239 million for 2023, 2022 and 2021, respectively.
HubSpot has never repurchased shares and paid dividends to shareholders.
Conclusion
HubSpot’ s balance sheet was healthy.
It has been in loss over the past three years.
The growth rate in revenues was very fast.
The amount of stock-based compensation was high.
HubSpot(HUBS)’ s stock price is $669.89 per share, which is equivalent to $33.95 billion in market capitalization.
We reckon that HubSpot ‘s stock price is overvalued and the company’s investment value is minimal.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
We provide a customer platform that helps businesses connect and grow better. We deliver seamless connection for customer-facing teams with a unified platform that includes three layers: AI-powered engagement hubs, a Smart customer relationship management product (“CRM”), and a connected ecosystem supporting the customer platform with a marketplace of integrations, templates, and expert partners, a community network, and an academy of educational content.
Our engagement hubs include Marketing Hub, Sales Hub, Service Hub, Operations Hub, content management system (“CMS”) Hub and Commerce Hub, that enable companies to attract, engage, and delight customers throughout the customer lifecycle. The Smart CRM is the foundational layer that combines customer data with AI to power the entire customer platform with unified customer profiles and tools to manage and govern your team and business processes.
We focus on selling to mid-market business-to-business (“B2B”) companies, which we define as companies that have between 2 and 2,000 employees. We sell our customer platform on a subscription basis. In 2023, our total revenue was $2.2 billion and we incurred a net loss of $176.3 million. As of December 31, 2023, we had 7,663 full-time employees and 205,091 Customers, as defined in our Key Business Metrics in Item 7, of varying sizes in more than 135 countries. Our company was formed as a limited liability company in Delaware on April 4, 2005. We converted to a Delaware corporation on June 7, 2007. Our principal executive offices are located at Two Canal Park, Cambridge, Massachusetts, and our main telephone number is 888-482-7768. Our website address is https://www.hubspot.com. Information contained on or that can be accessed through our website does not constitute part of this Annual Report on Form 10-K, and inclusions of our website address in this Annual Report on Form 10-K are inactive textual references only.
