HubSpot, Inc. · NYSE:HUBS
HubSpot — Q4 2024 Earnings Presentation
29 slides from HubSpot's earnings presentation, Feb 12, 2025
Slide 1: Investor Presentation Q4 2024
Investor Presentation Q4 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding management’s expectations of future financial and operational performance and operational expenditures, expe
Slide 3: Our Mission and Aspiration
Our Mission Help millions of organizations grow better Our Aspiration Be the #1 AI-powered customer platform for scaling companies 3
Slide 4: Fueling Growth for Scaling Businesses with HubSpot's AI-Powered Customer Platform
Fueling Growth for Scaling Businesses with HubSpot’s AI-Powered Customer Platform Engagement Hubs Unified data Smart CRM Embedded AI Copilot Agents AI Features Ecosystem Marketplace Academy Network 4
Slide 5: Engagement Hubs: Building a System of Engagement for the Front-Office
Engagement Hubs Building a System of Engagement for the Entire Front-Office Use cases Marketing Hub Sales Hub Service Hub Content Hub Operations Hub Commerce Hub Collect payments Generate leads Build pipeline Scale support Create content Manage data and subscriptions Automate marketing Close deals D
Slide 6: Unified Data: Smart CRM and Breeze Intelligence
Unified Data Sitting On Top of a Unified and Enriched Data Layer Smart CRM Breeze Intelligence Unifies data, your team Provides customers the best possible and tech stack. data about their customers. Flexible Sensitive Smart Company Buyer intent Form Custom data features & contact data shortening objec
Slide 7: AI Powering the Entire Customer Platform
Embedded AI AI Powering the Entire Customer Platform ● CRM record summaries ● Content creation (email, landing pages, blogs, etc) ● Search summaries ● Company research ● Brand voice ● Browser extension ● Image generation ● Call analysis ● Mobile app ● Social Agent ● Prospecting Agent ● Content Agent
Slide 8: Growing a Trusted Ecosystem of Partners to Extend our Reach
Ecosystem Growing a Trusted Ecosystem of Partners to Extend our Reach Marketplace Academy Network 1700+ app integrations, 500,000+ certifications awarded to 7000+ solutions partners up 10x over last 5 years professionals in 2024 reselling HubSpot 8
Slide 9: HubSpot's Platform Journey: Marketing App to AI-powered Smart CRM
HubSpot’s Platform Journey: Marketing App to AI-powered Smart CRM Smart Content Hub CRM Frame AI Acquisition Commerce Hub Operations Hub $2B CRM Cacheflow Acquisition CMS Hub Clearbit Service Hub Acquisition Sales Hub $1B Marketing Hub $500M Performable Acquisition Revenue $250M PieSync $100M Acquisi
Slide 10: Single Digit Penetration Across All Products in $100B+ TAM
Single Digit Penetration Across All Products in $100b+ TAM Opportunity <10% $76B Penetration across all products $128B 2024 2029 Includes Total Addressable Market (TAM) for software in HubSpot’s core product groups including Marketing Hub, Sales Hub, Service Hub, Operations Hub, Content Hub, Commerc
Slide 11: We are positioned for long-term durable growth
Right to win in a large and expanding market Strong momentum as a platform with fast We are positioned pace of innovation for long-term durable growth Scaling distribution and building moats Balancing growth, efficiency and culture with a customer focused and resilient team 11
Slide 12: Financial Overview
Financial Overview Q4 2024 |
Slide 13: Q4 2024 Financial Summary
Q4 2024 Financial Summary Currency Quarterly Increase Tailwind Constant Q4 2024 Actuals Results (Decrease) Y/Y2 (Headwind) Currency Y/Y3 Total Revenue $703.2M 20.8% 1.2% 19.7% Subscription Revenue $687.3M 20.5% NA NA Professional Services & Other Revenue $15.9M 35.6% NA NA Gross Profit $609.6M 21.9%
Slide 14: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary Currency Full Year Increase Tailwind Constant Full Year 2024 Actuals Results (Decrease) Y/Y2 (Headwind) Currency Y/Y3 Total Revenue $2,627.5M 21.1% 0.3% 20.8% Subscription Revenue $2,569.5M 21.0% NA NA Professional Services & Other Revenue $58.0M 24.1% NA NA Gross Pr
Slide 15: Q1 2025 Guidance Summary
Q1 2025 Guidance Summary Currency Quarterly Increase Tailwind Constant Q1 2025 Guidance Guidance (Decrease) Y/Y2 (Headwind) Currency Y/Y3 Total Revenue $697M - $699M 12.9% - 13.2% (1.8%) 14.7% - 15.0% Operating Profit1 $98M - $99M 5.8% - 6.9% NA NA Operating Profit Margin1 14.1% - 14.2% (0.9%) - (0.8%
Slide 16: Full Year 2025 Guidance Summary
Full Year 2025 Guidance Summary Currency Full Year Increase Tailwind Constant Full Year 2025 Guidance Guidance (Decrease) Y/Y2 (Headwind) Currency Y/Y3 Total Revenue $2,985M - $2,995M 13.6% - 14.0% (1.9%) 15.5% - 15.9% Operating Profit1 $543M - $547M 18.0% - 18.9% NA NA Operating Profit Margin1 18.2%
Slide 17: Consistent Revenue Growth
Consistent Revenue Growth $703M 1 31% CAGR $152M Q1’19 → Q4’24 Q1 2019 Q4 2024 Quarterly Revenue 1 CAGR = Compound Annual Growth Rate. Revenue CAGR based on as-reported results and includes the impact from currency. 17
Slide 18: Consistent Customer Growth
Consistent Customer Growth 248k 1 26% CAGR 61k Q1’19 → Q4’24 Q1 2019 Q4 2024 Quarterly Customer Count 1 CAGR = Compound Annual Growth Rate. 18
Slide 19: Substantial Operating Profit Growth
Substantial Operating Profit Growth $133M 1 50% CAGR $13M Q1’19 → Q4’24 Q1 2019 Q4 2024 Quarterly Operating Profit 1 Operating profit and operating profit margin are non-GAAP metrics. Please refer to the appendix for a reconciliation of GAAP to non-GAAP figures. CAGR = Compound Annual Growth Rate. 19
Slide 20: Strong Free Cash Flow & Balance Sheet Position
Strong Free Cash Flow & Balance Sheet Position $488M $2.2B cash position 19% Margin $64M FCF, TTM Q4 2024 Q1 2019 Q4 2024 Trailing Twelve Month Free Cash Flow 1 Free cash flow (FCF) and free cash flow margin are non-GAAP metric. Please refer to the appendix for a reconciliation of GAAP to non-GAAP figu
Slide 21: Confident in Our Ability to Deliver More Leverage Over Time
Confident in Our Ability to Deliver More Leverage Over Time 17.5% 20-22% 25% 2024 2027 Long-Term Margin Margin Target Margin Target 2024 operating profit margin and forward-looking operating profit margin targets are non-GAAP and reflect our current operating plan as of February 12, 2025 and are subject
Slide 22: Key Takeaways
Key Takeaways 1 2 3 Platform of choice in Innovation fueling Delivering strong large and growing TAM durable and diverse financial results growth opportunities 22
Slide 23: Thank You
Thank You + + +
Slide 24: Appendix
Appendix 24
Slide 25: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations 25
Slide 26: Non-GAAP Operating Income
Non-GAAP Operating Income 26
Slide 27: Non-GAAP Operating Income
Non-GAAP Operating Income 27
Slide 28: Free cash flow
Free cash flow December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31,2023 December 31, 2024 ‘7000s $7000s $7000s $7000s ‘7000s '$7000s GAAP net cash and cash equivalents provided by (used in) operating activit 118,972 88,913 238,728 273,177 350,972 598,599 Purchases of
Slide 29: Definitions
Definitions Customers: We define our Customers at the end of a particular period as the number of business entities with one or more paid subscriptions to our CRM Platform either purchased directly with us or purchased from a Solutions Partner. We do not include in Customers business entities with o