Kerrisdale believes this multiple will be unsustainable for HubSpot as pandemic beneficiary companies start to return to normal and investors begin questioning unprofitable companies.Īccording to Kerrisdale’s research and interviews with online marketing professionals, HubSpot’s products are “‘good enough’ for many purposes but don’t possess any sort of commanding lead in capabilities or ease of use.” The hedge fund cites several online reviews that mention that the company’s variety of products doesn’t offer any real utility. Meanwhile, HubSpot trades at a 20x EV/NTM sales multiple. Indeed, industry peers SquareSpace (NYSE: SQSP) and Wix (NASDAQ: WIX) trade at an enterprise value to next 12 months revenue (EV/NTM revenue) multiple of 5.1x and 5.7x, respectively. However, the hedge fund argues that the price of HubSpot is now trading at a premium relative to industry peers for no solid reason.
Kerrisdale gives credit to HubSpot for growing revenues after the pandemic due to mid-sized businesses rushing to go digital. Prior to the 2020 pandemic, HubSpot’s revenue growth was in decline for several years. In the past few years, the company has lost its CEO, chief operating officer, chief sales officer and chief strategy officer. Kerrisdale highlights that HubSpot has a recent history of major executives leaving. InvestorPlace - Stock Market News, Stock Advice & Trading Tips What to Know About the Kerrisdale Short Report Rocking HUBS Stock
Let’s dive into the details on the HubSpot short report. However, when Kerrisdale talks, people listen.
To ensure that existing and potential investors and contacts are able to track our progress and obtain news and updates as soon as available, we would encourage registration to our news alert service.Shares of HUBS stock have remained relatively resilient in the wake of Kerrisdale’s short report, down less than 2%. We place great importance on the need for effective communication with investors and the media.
The Company is bound by the corporate laws of The Isle of Man, the Company’s Articles of Association, the Rules of the London Stock Exchange and the City Code on Takeovers and Mergers.įor the rate of exchange used for the payment of dividends, please refer to the Company Information and Dividend History and FX Rates pages. This came two years after the acquisition of the international online operator, bwin.party digital entertainment plc, in 2016. On 28 March 2018 Entain (formely GVC Holdings PLC) completed the acquisition of Ladbrokes Coral Group PLC, the Group’s first move into retail operations. Through a combination of organic growth and M&A, the Group has expanded rapidly in recent years to become one of the world’s largest listed sports betting and gaming groups. Incorporated in the Isle of Man, Entain is a constituent member of the FTSE 100 with its shares traded on the Main Market of the London Stock Exchange. Welcome to the Investor Relations section of the Entain website.Įntain plc (LSE:ENT) is a multinational sports betting and gaming group operating through online and retail channels. MGMRI Potential Offer for Entain plc offer documents.Ladbrokes Coral Group plc – Public Documents.