Since Monday, HubSpot (NYSE: HUBS) shares have soared more than 15%, bringing its market cap just shy of $37 billion.
With its valuation having doubled so far in 2021, have investors missed the boat?
The very cause of its recent growth is also reason to be hugely optimistic about HubSpot's growth potential -- as should be the case when it comes to innovation.
On Tuesday, the company ripped through the market after unveiling HubSpot Payments, a proprietary digital end-to-end payment solution built into the HubSpot ecosystem. The move makes a lot of sense for a company like HUBS, which specializes in the development of software products for inbound marketing, sales, and customer service.
Adding payments to the mix creates a perfectly symmetrical lifecycle for its products.
While several other products were announced alongside HubSpot Payments, this seems to be the big fish. Despite numerous competitors, HubSpot's existing 121,000+ customers form a strong base for the product to be utilized -- helped by the fact the company will waive the fees for the first $50,000 of electronic transactions processed each month.
Hopefully, The payments business will generate another high-quality revenue stream for HubSpot, while potentially improving its margins and boosting customer retention. HubSpot is also on track to surpass $1 billion in total revenue in a fiscal year for the first time, based on trailing 12-month figures.
Boasting a strong CAGR since its IPO in 2014, these innovative plans really do beg the question; could HubSpot become a mega-cap SaaS company like Salesforce? Only time will tell...
For a $37 billion company, this is a tasty-looking CAGR. Taken from HubSpot's Q2 2021 earnings report.
Access more worthy investments by checking out our market-beating shortlist of stocks. Start your free access now so you too can generate real long-term wealth.
The Home of Successful Investing.
© 2023 MyWallSt Ltd. All rights reserved.