Long Post for Investors (redflix S3E05)
How fast can a company grow?
If your time horizon is in years, pretty fast
If your time horizon is weeks, you may be in for a surprise
HubSpot is a CRM company in a very competitive landscape so keep that in mind
In 2007 revenues were $255K
In 2010 revenues were $15.6M
5 Years ago, Hubspots trailing 12 month revenue was $44M as of Q1 2014
6 months later, they did a IPO @ $25/share raising $125M with a market valuation of $880M
HubSpot Announces Pricing of Initial Public Offering - October 8, 2014
5 months later they did a following on offer @ $37/share (50% increase)
HubSpot Announces Pricing of Follow-on Offering - Mar 17, 2015
3.5 years later their market cap was $4.23B
Fast forward 5 years later from when their revenue for 12 months was $44M and they announced another PO to raise $300M plus a possible $45M
HubSpot Announces Pricing of Public Offering of Common Stock - Feb 14, 2019
HubSpot was growing 50%-60% quarterly but has slowed down to the 30's
Their net income has always been negative and has gotten worse
Hubspot currently is at $166/share with a market cap of $6.83B
Their PE Ratio is 178
BTW, it's negative 178
When Hubspot did the IPO and was valued at $880M, but their revenue was 1/10th that and 6 months earlier 1/20th that.
Is VERB in a better position or not vs. Hubspot at the same point in their journey?
Does VERB have a more unique product with more potential than Hubspot?
Is VERB going to be valued at over $1B in a year or so?
If VERB's revenues are $13M what is the company worth?
Do the math and you decide
I would encourage any serious investor to go back and look at companies at about the same stage as VERB to get a rough idea of comparison and add/subtract as you see fit.
I did check and the Hubspot investors that got in early aren't crying over 600% gains, more dilution or negative earnings