Read on to learn why HubSpot has been so successful over the past 15 years.
What is HubSpot?
HubSpot is a company that offers software designed to implement the inbound marketing methodology, including marketing, sales, service, operations, and website management products. They currently have approximately 114,000 customers in more than 120 countries.
Financial growth
Hubspot was founded in 2006 by Brian Halligan and Dharmesh Shah, who developed the business model during their time at MIT. The two conceived the concept for the company after recognizing that while technology has transformed the way people live, shop, work, and interact with each other, businesses had not adapted to new technologies in the same way.
In 2006, Shah invested $500,000 of his own money into the company, which served as the foundation for developing all of Hubspot's platforms. Within four years of launching the software, the company's revenue was $15.6 million, and by 2012 they had received approximately $100 million in investment.
In 2014, Hubspot listed its shares on the New York Stock Exchange, raising $125 million in capital, with a market valuation of $880 million.
On May 5, 2021, the company announced financial results for the first quarter ended March 31. Total revenue was $281.4 million, up 41% from the first quarter of 2020.
For the full year 2021 results, the following are expected:
Total revenue is in the range of $1,237-$1,247 million
Non- GAAP operating income is in the range of $104 million to $106 million.
Non-GAAP net income per common share is in the range of $1.61 to $1.65 million. This implies approximately 50.8 million weighted average diluted shares outstanding.
How does HubSpot work?
Hubspot's business model works by marketing a set of software that allows you to attract, retain and build customer loyalty through inbound marketing techniques. They offer certifications for their platforms and have a guided learning center for people who want to learn how to use them.
HubSpot has classified its services into so-called hubs (in English “Hubs”: Marketing Hub, Sales Hub and Services Hub. We show you the functionalities of each of them:
In addition to that, HubSpot offers a free CRM solution to manage taiwan phone number leads and customers, which serves to centralize and classify contacts, track their status in the conversion funnel, schedule activities or meetings with contacts, create reminders for them, among other functions.
Additionally, customers can integrate third-party applications (e.g. Gmail or Jira) through their marketplace platform.
How does HubSpot make money?
HubSpot makes money by selling its suite of subscription-based software. The company's CRM tool is free and is primarily used to attract additional customers.
Monetization occurs through HubSpot's Hub apps, and consulting offerings and events contribute to the company's bottom line.
In addition to their hub offerings, customers can also purchase access to third-party applications.
Examples of third-party apps include Outlook, Mailchimp, or Slack. Customers can choose different packages that determine the monthly fee.
HubSpot offers consulting services that include:
Optimizing the client's website with SEO techniques
Building attractive lead conversion funnels
Understanding Key Website Metrics
Designing content strategies
Depending on the services you select, you can get customized prices.
Likewise, HubSpot (or one of its selected partners) organizes a series of paid events around the world to encourage sharing and marketing its tools. One of the most famous is “INBOUND”, which was held last year on September 22 and 23.
These events discuss key topics related to marketing, sales, customer service and personal management.
What makes HubSpot special?
It is true that today we can find a variety of automated marketing software, but HubSpot continues to dominate the market and there are a few reasons for this.
Inbound marketing is a marketing tactic that puts decision-making power back into the hands of the consumer. When given the right information, they can choose which products they want to buy.
Some of the most effective inbound marketing strategies involve capturing leads through digital channels and creating useful content that helps consumers make purchasing decisions.
HubSpot uses its blog to show potential customers that they are a trusted source of information, and HubSpot Academy offers hundreds of hours of free training courses and certifications so anyone can become familiar with inbound marketing topics. All of this is aimed at helping users get the most success out of their subscription.
Ultimately, HubSpot's growth and success is due to the complete set of tools aimed at growing your business. You can manage your marketing, sales, and customer service strategies in one platform, instead of using many different tools that don't integrate with each other.