Max Teh

Sep 4, 20223 min

Why I'm adding Hubspot stock into my portfolio (It is the best in class in the CRM space).

Updated: Sep 10, 2022

KEYPOINTS:

🔑 Most of Hubspot's products are voted as the best in the respective segments they operate in.

🔑 Hubspot has the highest site traffic & search trends compared to their competitors

🔑 Hubspot also has the strongest social media presence compared to their peers.

WORKING FILE:

🛠️: Hubspot biz segments & product ratings (Maximizations.com)
 


Table of contents:

  1. Product reviews from customers

    1. G2

      1. Hubspot's CRM segment

      2. Hubspot's Automated Marketing segment

    2. Gartner peer reviews

    3. Mobile app ratings

      1. Android app rating

      2. IOS app rating

  2. Market adoption rate

    1. Google search trend

    2. Website traffic

    3. Market share in their respective segments

  3. Social media following trend

  4. Endnotes

Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.


Product Reviews

Customers reviews

  • When looking for reviews,

    • we ought to always favor customer reviews

      • over sites from reviewers

        • which may be biased
           

  • One of my favourite sites for customers' reviewers for software products is G2.

G2

  • When looking at Hubspot's main product segment,

    • the CRM market

> CRM segment

  • It has very good ratings from customers

  • and its ranked as 2nd best amongst it's peers

    • after Salesforce

      • Salesforce is a stock I would avoid at this stage

        • because they are currently in a large net debt position

          • which is a representation of an unhealthy balance sheet.

  • that leaves Hubspot as the best stock in the CRM space to invest in.

> Automated Marketing Software segment

  • Hubspot's second main product operating in the Automated Marketing Software space

    • also has fantastic reviews from users.

  • And its voted as the best in its class

    • when compared to peers,

    • in terms of:

      • Market Presence &

      • Customer Satisfaction rating

Gartner Peer Review

  • Using another source of review platform

    • we can see that Hubspot received pretty good ratings for their products on Gartner too.

  • Hubspot's CRM software

  • Hubspot's Automated Marketing Software

Mobile app ratings

  • Another source we can obtain unbiased customer reviews

    • is from the mobile app ratings from users

    • if the company offer mobile apps as a part of their services.

Android

  • We can see that:

    • there are reasonably high amount of ratings for Hubspot's CRM app

      • making the ratings more reliable

    • it has pretty high rating of 4.7 out of 5

    • both which are very good signs of high user satisfaction

IOS

  • Similarly it has pretty good reception from its users

    • on IOS app store too.


Market Adoption rate

  • Next, we shall look at the market's adoption rate

    • for the products & services offered by the company.

Google search trend

  • When comparing Hubspot's Google search trend with its most renown peers in the CRM space

    • although Hubspot ranked 3rd in terms of search volume,

      • after Salesforce & Zoho

        • who have both been in the market much longer, hence its understandable
           

  • Its search volume by itself is growing at a high CAGR of 19%

    • in the past 16 years

      • since the company was founded in June 2006 [1]
         

    • this is a great sign of growth

      • in terms of market's awareness & interest for the company.

  • Hubspot is also well-known for their INBOUND events

    • which garners interests from digital marketers & professionals alike around the world.

      • it's a great opportunity for Hubspot to spread their brand awareness

        • and product offerings.

Site traffics

  • Next thing we can look at, is the amount of site traffics to Hubspot's website.

    • which appears to be in a healthy increasing trend over the past 10 years.

      • which is aligned with the google search trend's data above.

  • When compared to their peers'

Hubspot website's traffic is higher than the cumulative of its peers in the CRM space (source: semrush)

  • One of the most noticeable thing is that

    • Hubspot's amount of organic traffic is higher compared to the

      • cumulative traffic amount of the other 3 most prominent players in the CRM space

    • this signals Hubspot's popularity in the CRM space.

Market Share

  • Hubspot Sales also has a healthy 19% market share

    • in the Sales Performance Management product segment.

source: enlyft
  • and a commanding 37% in the Marketing Automation space.

source: enlyft

Social Media followers trend

  • It is also important to observe the followers & engagement rate of the company's social media accounts

    • Especially if the company is operating in segments which's target market are spending:

      • alot of their time &

      • attention of them.

  • When compared to their peers

  • Hubspot have the highest amount of followers on platforms like

    • Instagram &

    • Twitter
       

    • while coming in close at second after Salesforce on

      • Youtube.


Endnotes:

[1] https://en.wikipedia.org/wiki/HubSpot#:~:text=HubSpot%20is%20an%20American%20developer,and%20Dharmesh%20Shah%20in%202006.

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