Hootsuite has been hugely successful, especially compared to other startups and services that provide similar features.
Founded in 2008, it reached an extremely impressive valuation of $750 million US dollars. It has raised $300 million in funding, which also includes loans to strengthen its business portfolio.
But you may wonder if Hootsuite is making money or using that money to upkeep its services.
Here’s the Short Answer on Hootsuite’s Profitability:
Hootsuite is profitable and earns millions of US Dollars each year, with a bulk of the revenue coming from subscriptions. Small to medium-scale businesses comprise most of the users on Hootsuite. The last valuation of Hootsuite amounted to $750 million. Hootsuite is a freemium service, meaning users pay for premium services and upgrades.
How much money does Hootsuite make?
Hootsuite earns around $300 million every year.
Their revenues mostly consist of payments for subscriptions, add-ons services, and training and certifications from the company.
When did Hootsuite become profitable?
Hootsuite started earning profits from its service in 2010.
Hootsuite started as a free service in 2008 that allowed users to manage their Twitter accounts.
2010 was a big year for Hootsuite:
- In 2010, Hootsuite adopted the freemium format for its services. This means that subscribers start with free accounts and transition to paid subscriptions at different levels for different and more features.
- Facebook and LinkedIn integration with Hootsuite was made possible.
- It earned its first round of capital, amounting to $1.9 million.
- Hootsuite reached the one million subscriber mark.
Now, in 2020, Hootsuite has over 16 million users around the world and maintains 10 offices outside its home country of Canada.
How Big Is Hootsuite Compared to the Competitors?
Hootsuite is one of the biggest and most successful social media companies of its kind in the market.
While it is not as big as Facebook or Twitter, Hootsuite plays a different role in social media. Hootsuite focuses on its niche of providing social media management tools to help marketers. For the services it provides, Hootsuite remains at the top.
Hootsuite has also bought out a variety of services and partnered with other complementary services to strengthen its own. Some of the companies that have integrated their services with Hootsuite include Salesforce, Adobe, Canva, and Spotify.
Should I Invest in Hootsuite Stocks?
Hootsuite has plans of going public, but they have not gone through with these plans yet.
But, should they go public, is it worth investing in Hootsuite?
As with all investing, it depends on a number of variables.
- How stable is the company?
- Do they seem capable of sustaining their growth?
- How fast are their debts being paid off?
They may have fast growth, but if the near future means servicing a lot of these financial obligations, it might not be worth the risk.
If you feel that everything checks out, it might be beneficial to invest, as long as the price per share is reasonable.
How Well Is Hootsuite Funded?
Hootsuite is very well funded.
To date, it has secured around $300 million in funding.
Its first round of capital gave them $1.9 million in 2010, and they secured $50 million in 2018.
Aside from funding garnered from investors, Hootsuite still has its monthly subscriptions and other add-on services to pad the vaults.
What Are the Sources of Funds for Hootsuite?
Hootsuite has different sources of funds that allow it to develop different solutions for digital marketing.
The first source of funds for Hootsuite is the payments for its subscription services.
As it is, there are around 16 million Hootsuite subscribers at various levels of subscription payment plans. These plans can range from $29 a month for the Professional Plan to $599 a month for the Business Plan.
With 16 million subscribers, Hootsuite rakes in a lot of its revenue from subscribers.
While Hootsuite does not match the revenue of Fortune 1000 companies, for a startup company, it’s quite impressive.
Another source of funding is Hootsuite Academy.
Hootsuite Academy is a training program offered by Hootsuite for professionals and aspiring digital marketers who want to strengthen their credentials.
The cheapest program Hootsuite Academy offers with a certificate is the Hootsuite Mastery class, which costs $99. Meanwhile, the Advanced Social Media certification costs program costs $999.
All those classes add up to a pretty hefty payout for Hootsuite.
Hootsuite also gets revenue from the add-on services provided to subscribers.
These services, billed on top of the monthly subscription price, are tailor-fit solutions that Hootsuite provides so businesses can get the most out of Hootsuite.
Among these added services are Social Listening, Ad Management, Employee Advocacy, Social Selling, and others.