HubSpot is a Software as a service (NASDAQ:SAAS) company focused on marketing, sales and services offerings to clients across different sizes in terms of revenue. Starting as a marketing app, the company has successfully pivoted to a full-fledged CRM platform with ~65,000 paying subscribers as of Q2 2019.

The company has thus far, been focused on large enterprises but has now started to focus on small and medium scale businesses through its freemium strategy. The strategy has worked well - HubSpot has delivered solid top-line growth along with rapidly improving margins.

I am bullish on HubSpot's strategic shift and expect the company to penetrate its target customer segment further and also expand its market through existing and new offerings. Shares are trading at a lower-than-industry revenue multiple and seem like a good buy at this stage.

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