Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>HubSpot delivered a solid quarterly result with 41% revenue growth over the year in a constant currency surpassing Wall Street expectations.</li><li>Its customers have been growing by 25% year on year and the company also delivered an earnings beat.</li><li>In the upper-end market, the company is increasing its pricing of marketing hub enterprise to match the additional value it has been delivering to its customers in the past few years.</li></ul>

HubSpot delivered a solid quarterly result with 41% revenue growth over the year in a constant currency surpassing Wall Street expectations.Its customers have been growing by 25% year on year and the company also delivered an earnings beat.In the upper-end market, the company is increasing its pricing of marketing hub enterprise to match the additional value it has been delivering to its customers in the past few years.

Equity Capital Markets

<ul><li>HubSpot managed to continue adapting well to the dynamic business environment after the impact of the Covid-19 in 2021.</li><li>Based on its recent results, the company saw broad-based strength across the business, with a 47% growth in revenue over the year.</li><li>The year closed with over $200 million in free cash flow, approximately $1.5 billion in ARR, and over 135,000 customers worldwide.</li></ul>

HubSpot managed to continue adapting well to the dynamic business environment after the impact of the Covid-19 in 2021.Based on its recent results, the company saw broad-based strength across the business, with a 47% growth in revenue over the year.The year closed with over $200 million in free cash flow, approximately $1.5 billion in ARR, and over 135,000 customers worldwide.

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

<ul>
<li>Sequoia Capital India, one of the key shareholders of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. </li>
<li>According to SEC filings, venture capital firm acquired ~5 million <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares at an average price of $17.38 per share. </li>
<li>We believe that strong insider buying may indicate a bottom in <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  stock after significant multiple compression in the technology software sector. </li>
</ul>


Sequoia Capital India, one of the key shareholders of Freshworks (FRSH US) , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. 
According to SEC filings, venture capital firm acquired ~5 million Freshworks (FRSH US)  shares at an average price of $17.38 per share. 
We believe that strong insider buying may indicate a bottom in Freshworks (FRSH US)  stock after significant multiple compression in the technology software sector. 


Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

Research from Kerrisdale Capital, Kerrisdale Capital Management

Kerrisdale Capital Management

Research from Kerrisdale Capital

<ul>
<li>We are short shares of <a href="https://www.smartkarma.com/entities/hubspot-inc" target="_blank" data-smartkarma-citation="entities:7119" rel="noopener">Hubspot Inc (HUBS US)</a>, 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.</li>
<li>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.</li>
<li>Naturally, HubSpot doesn’t turn a profit. Should it ever try to, its margins will likely disappoint.</li>
</ul>
<hr>
Table of Contents
<ul>
<li>COMPANY BACKGROUND</li>
<li>HUBSPOT IS PERSISTENTLY UNPROFITABLE</li>
<li>HUBSPOT’S PRODUCTS ARE NOTHING SPECIAL</li>
<li>CAPITAL HAS BEGUN TO FLOW RAPIDLY INTO HUBSPOT’S COMPETITORS </li>
<li>HUBSPOT LEADERSHIP IS IN FLUX AND HAS STEADILY SOLD STOCK</li>
<li>CONCLUSION </li>
</ul>


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 


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

<ul><li>HubSpot experienced another amazing quarter, where revenue grew by 47% year-over-year in constant currency and total customers grew 34% year-over-year to more than 128,000.</li><li>Besides, their positive results demonstrate that HubSpot is laying the groundwork for these businesses to grow.</li><li>Furthermore, HubSpot is bringing a human-friendly product and purchasing experience to major corporations, which has typically been observed in small and mid-market businesses.</li></ul>

HubSpot experienced another amazing quarter, where revenue grew by 47% year-over-year in constant currency and total customers grew 34% year-over-year to more than 128,000.Besides, their positive results demonstrate that HubSpot is laying the groundwork for these businesses to grow.Furthermore, HubSpot is bringing a human-friendly product and purchasing experience to major corporations, which has typically been observed in small and mid-market businesses.

United States

HubSpot, Inc. provides a cloud-based marketing and sales software platform. The Company offers integrated applications that helps in lead generation and social marketing.

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Hubspot Inc (HUBS US)

HubSpot Inc: Improving Reach

HubSpot delivered a solid quarterly result with 41% revenue growth over the year in a constant currency surpassing Wall Street expectations. Its...

Baptista Research

HubSpot Inc.: Investment Thesis

HubSpot managed to continue adapting well to the dynamic business environment after the impact of the Covid-19 in 2021. Based on its recent...

Baptista Research

Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

We maintain our bullish view on Freshworks and see notable insider buying as a strong interest among key shareholders, including Sequoia Capital India

Andrei Zakharov

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

We are short shares of HubSpot, Inc. (HUBS), an unprofitable SaaS company that, despite the recent downward re-rating of the tech sector, still...

Kerrisdale Capital Management

HubSpot Inc. - Investment Thesis

HubSpot experienced another amazing quarter, where revenue grew by 47% year-over-year in constant currency and total customers grew 34%...

Baptista Research

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