HubSpot, Inc. · NYSE:HUBS
HubSpot — Investor Presentation (May 2024)
28 slides from HubSpot's investor presentation, May 2024
Slide 1: HubSpot Overview Q1 2024
HubSpet HubSpot Overview Ql 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: HubSpot is a leading CRM platform for scaling companies
HubSpot is a leading Customer Relationship Management platform for scaling companies. Our mission is to help millions of organizations grow better. 3
Slide 4: HubSpot at a Glance
HubSpot at a Glance $2.3b $311m2 217k3 7.8k TTM revenue TTM FCF customers employees 24%1 14% 22% 135+4 YoY growth FCF margin YoY growth countries 1 As-reported YoY growth based on trailing twelve month period as of Q1 2024, compared to prior trailing twelve month period as of Q1 2023. 2 FCF = Free C
Slide 5: Our foundational choices
Our foundational choices • Focus on SMB • Move from app to suite to platform • Build products organically • Deliver value before you monetize 5
Slide 6: The SMB market is underserved
Sales Data Acquisition Productivity Service The SMB market Ticketing Analytics Reporting Acquisition Websites Acquisition Data Sync is underserved Messaging Acquisition Marketing Service Automation Acquisition Reporting Marketing Automation Acquisition Disconnected point solutions Cobbled enterprise
Slide 7: HubSpot is well positioned to solve this problem
HubSpot is well positioned to solve this problem Sales Data Acquisition Productivity Service Ticketing Analytics Reporting Acquisition Websites Acquisition Data Sync Messaging Acquisition Marketing Service Automation Acquisition Reporting Marketing Automation Acquisition Disconnected point solutions
Slide 8: From a single app to a platform
To help our customers make connections, we’ve transformed from a single app to a platform AI-Powered Content Hub TM Lead Generation Prospecting Help Desk Content Creation Advanced Reporting Payments & Subscriptions Marketing Deal Self Service Content Process Automation Management Management Automati
Slide 9: What matters to our customers?
What matters to our customers? Acquire Make Improve Increase Thrive with AI customers data-driven customer efficiency decisions experience Quality rather Being smarter Winning where Don’t scale chaos. We want to show up than quantity. with our data. winning like people, not matters. bots. Sr. CRM Ma
Slide 10: Early stages of large TAM opportunity
Early stages of large TAM opportunity $77b 1 $51b 1 <10% Penetration across all product and customer segments 2023 2028 1 Includes Total Addressable Market for software in HubSpot’s core product groups including Marketing Hub, Sales Hub, Service Hub, Operations Hub and CMS Hub. Does not include Comm
Slide 11: Our focus is on driving broad and efficient distribution
Our focus is on driving broad and efficient distribution Who is buying Digital, sales and partner-driven Large Digital and sales-driven Medium Digital-driven Small How we are serving 11
Slide 12: Building a company future generations will be proud of
Building a company future generations will be proud of #1 Best Sales and #3 Best CEOs for 100 Best America’s Marketing Women by Companies to Greenest Software by G2 Comparably Work For® by Companies by Great Places to Newsweek Work 12
Slide 13: The HubSpot Journey
The HubSpot Journey 200k Customers Content Hub Launch Clearbit Acquisition Operations Hub Launch CMS Hub Launch Commerce Hub Launch 100k $2b CRM Launch PieSync Customers ARR 2 Acquisition Service Hub Launch Sales Hub Launch 1 $1b Performable Acquisition ARR 2 Marketing Hub $500m Launch $250m $100m $
Slide 14: HubSpot is positioned for long-term, durable growth
HubSpot is positioned for long-term, durable growth Mission Help millions of organizations grow better. Aspiration Become the #1 Customer Platform for scaling companies. Product Strategy Power our Engagement Hubs and Smart CRM with AI. Go-to-Market Scale breadth of distribution with multiple GTM mot
Slide 15: Financial Overview Q1 2024
Financial Overview Q1 2024 I
Slide 16: Strong Revenue Growth
Strong Revenue Growth Quarterly Revenue $617m Q1’24 revenue $617m revenue growth yoy 23%1 $82m Q1’17 Q1’24 1 Excludes impact of foreign currency. Q1’24 revenue growth was 23% as reported and 23% in constant currency. Constant Currency is presented by converting current and comparative prior period o
Slide 17: Strong Customer Growth
Strong Customer Growth Total Customers 216k1 Q1’24 customers 216k1 customer growth yoy 22% 31k Q1’17 Q1’24 1. Includes addition of approximately 800 Clearbit customers from acquisition. 17
Slide 18: Growing Profitability with Scale
Growing Profitability with Scale Quarterly Operating Profit 1 $93m Q1’24 operating profit1 $93m operating profit1 15% margin $1m Q1’17 Q1’24 1 Non-GAAP operating profit excludes expenses associated with stock based compensation, amortization of acquired intangible assets, acquisition related expenses and
Slide 19: Philosophy on balancing growth and profitability
Drive durable Philosophy revenue growth at scale on balancing growth and Generate operating profitability leverage as we scale toward long-term margin targets 19
Slide 20: Strong Track Record of Profitable Growth
Strong Track Record of Profitable Growth Annual Revenue Annual Operating Profit 2 $337m $2,170m 1 GR CA % 34 $376m $9m 2017 2023 2017 2023 Operating Profit Margin (%, as reported) 2 1 2 CAGR: compound annual growth rate. Based on as-reported revenue from 2017 to 2023. See definition and reconciliation o
Slide 21: Increasing Free Cash Flow Generation
Increasing Free Cash Flow Generation Trailing Twelve Month Free Cash Flow 1 $311m Q1’24 free cash flow1 $311m cash position $1.8b $14m Q1’17 Q1’24 1 1 Free Cash Flow Margin Free Cash Flow (Trailing Twelve Month, %) (Trailing Twelve Month, $m) 1 Free cash flow is a non-GAAP metric and is defined as cash
Slide 22: Long term financial targets
Long term financial targets 2026 Long Term 2022 2023 Q1 2024 Target Model1 Target Model1 Gross Margin 82% 84% 86% 84% 81% - 83% R&D 19% 19% 20% 20% 20% % of revenue S&M 45% 43% 43% 36% - 38% 30% - 35% % of revenue G&A 9% 8% 8% 8% 8% % of revenue Operating 10% 16% 15% 18% - 20% 20% - 25% Margin 1 Thes
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 24
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 25
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 26
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 27
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations * All amounts are trailing twelve months 28