Hubspot is a company that provides professional services and marketing software to enterprises. The company was originally founded by a pair of MIT students known as Brian Halligan and Dharmesh Shah.
Hubspot originally started small-scale businesses but thanks to rapid growth can target businesses of all sizes. In its first year, it was able to grow from 3 customers to over 8,000.
The company has its headquarters in Cambridge, Massachusetts. The company is listed on the New York Stock Exchange under the ticker symbol HUBS.
Total revenues for Hubspot were $883.026 million in 2020 and the operating income was $-50.828 million. Over 3,000 people work for Hubspot across its ten offices.
Hubspot has acquired the company Kemvi, an artificial intelligence, and machine learning business. Additionally, they have acquired The Hustle newsletter which targets small businesses.
Hubspot Biggest Competitors
Hubspot offers various free tools such as the website grader which enables them to attract new business. By offering certain services for free the company can upsell its paid services to interested buyers.
Its main source of income comes from the subscription fees it charges for access to its software. Its subscription fees account for 96% of the company’s total revenue.
Its software offers comprehensive customer relationship management, the basics of which are provided for free. The company is considered to be the sixth biggest company in the CRM market.
The remainder of its income is derived from the professional services that it offers. Hubspot offers training, consulting, and technical services that are aimed at providing customers with maximum results.
The company will create an action plan for their clients and provide them with different strategies they can use.Its CRM Free offers a lot of helpful features that integrate with other programs such as Gmail and Microsoft Office.
This can give users a feel for what Hubspot has to offer and in many cases has all the functionality you need.
Now let’s take a look at Hubspot’s competitors and alternatives:
- Salesforce – The industry-leading CRM solution.
- Zoho – An Indian company providing CRM software.
- Microsoft Dynamics – Microsoft’s line of CRM software.
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Hubspot Competitors: Salesforce
Salesforce is the leading CRM software provider in the world and they also provide certain cloud computing services. It began in 1999 after being developed by former Oracle employees Parker Harris, Dave Moellenhoff, Marc Benioff, and Frank Dominguez.
Its flagship product is the CRM software also called Salesforce. Clients can access the software through the web-based application which removes the need for IT infrastructure.
This helps companies to save costs as it reduces their in-house overhead. Salesforce is publicly traded on the New York Stock Exchange under the ticker symbol CRM following its initial public offering in 2004.
As of 2021 the company had an operating income of $21.25 billion with an operating income of $455 million.
The company acquired Slack in 2020 for a total of $27.7 billion. Thanks to its reputation and ability to save businesses money, Salesforce has grown to service 100,000 customers around the world.
Hubspot Competitors: Zoho
Zoho was founded in 1996 and was known as AdventNet, Inc. The company was founded by Sridhar Vembu and Tony Thomas and is located in Chennai, Tamil Nadu, India.
The company has grown to include offices in 7 locations around the world including a corporate headquarters in Pleasanton, California.
The company is known for its suite of office tools including word processing, spreadsheets, and databases. Its CRM software was released in 2005 and Zoho launched its flagship bundle Zoho One which includes over 40 applications.
The company is privately held but its total revenues for 2020 were revealed to be $610 million with an operating income of $110 million. Over 10,000 people work for the Zoho Corporation.
The company is reported to have over 80,000 customers with 20 million people using its software. Zoho has many high-profile clients including Hewlett Packard, Facebook, Amazon, and Netflix.
Hubspot Competitors: Microsoft Dynamics
Microsoft Dynamics is the brand name for the company’s line of customer relationship management software and enterprise resource planning applications.
The product was originally developed by Jesper Balser, Toben Wind, and Peter Bang in 1983 under the name Navision Damgaard.
By 2002 the programs had become a part of Microsoft’s Business Solution catalog.Its CRM software is called Microsoft Dynamics 365 Customer Service.
A major benefit of Microsoft Dynamics is that it can be integrated with other Microsoft products like Outlook, SharePoint, and Azure.
Microsoft is a publicly-traded company listed on Nasdaq under the ticker symbol MSFT. It is one of only three companies with a market cap of over one trillion dollars.
The company reported total revenue of $143 billion in 2020 and they had an operating income of $53 billion.
Microsoft Dynamics is a small part of Microsoft’s business but an integral part that helps it to compete with startups like Hubspot. Microsoft has brand recognition that can help them attract businesses familiar with their name.
Hubspot Competitors: Hubspot’s Advantage
Hubspot is an all-in-one platform that provides all the tools businesses of any size can use. The company originally targeted small businesses and it hasn’t lost sight of that.
However, Hubspot has grown in size and now also targets large businesses with over 100 employees which can bring extra revenue.
Thanks to the complete package that Hubspot offers marketers can save time and resources working with multiple applications.
All of its tools also come with analytics which can help you create reports to efficiently track progress. Another standout feature for Hubspot is the customer service which is easily accessible and there is a comprehensive knowledge base for reference.
Hubspot Competitors and Alternatives: Final Thoughts
Hubspot may be some way behind Salesforce in terms of revenue and customer but it is steadily growing. The company has developed its software so that it can offer all the services a business would need in one location.
Hubspot is competitively priced and gives access to certain features for free. It can convert these users into paid subscriptions by providing real value even at a free level.