HubSpot's (HUBS) Upcoming IPO Receives Above-Average Rating from Triton Research

Triton Research initiated coverage on the upcoming IPO HubSpot, Inc. (NYSE: HUBS) with a 7.10 rating, which is slightly above the firm's average IPO rating of 6.60. The company plans to list on the NYSE under the ticker "HUBS".

Hubspot, Inc. develops and sells software and related services on a subscription basis to medium-sized companies to assist them with online marketing activities.

"Hubspot Inc. is another AdTech platform, similar to Marketo, that helps SMBs with online marketing," Triton Research commented. "The SaaS model is attractive, revenue has scaled to over $100mn, and the company has built a large salesforce. But competitive differentiation will remain a challenge in this crowded market and we do not expect to see a profit in the forecast periods of 2015 and 2016."

Hubspot's total revenue increased from $35.1 million for the six months ended June 30, 2013 to $51.3 million for the six months ended June 30, 2014, representing a period-over-period increase of 46%. Meanwhile, the company had $17.7 million for the six months ended June 30, 2014.

Lead underwriters for the deal are Morgan Stanley and JPMorgan. Investors include General Catalyst Partners, Matrix Partners, Sequoia Capital, Scale Venture Partners, Charles River Ventures, Google Ventures and Salesforce.

Triton Research has published a 60-page report on Hubspot Inc. available to clients.

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