HubSpot, Inc. · NYSE:HUBS
HubSpot — Investor Presentation (August 2023)
26 slides from HubSpot's investor presentation, August 2023
Slide 1: HubSpot Overview Q2 2023
HubSpet HubSpot Overview Q2 2023
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 $1.94B $251M2 ~184K 7K+ TTM revenue TTM FCF customers employees 27%1 13% 120+ 13 YoY growth margin countries office locations 1 2 YoY growth based on trailing twelve month period as of Q2 2023, compared to prior trailing twelve month period as of Q2 2022. FCF = Free Cash Flow is
Slide 5: 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 6: 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 7: Our customers are challenged by a crisis of disconnection
Our customers are challenged by a crisis of disconnection Disconnected point solutions Disconnected systems are not the solution People need more than software to thrive Disconnected people and crave community Old GTM strategies will Disconnected customers NOT work in this new world 7
Slide 8: From a Single App To Platform
To Help our Customers Make Connections, We’ve Transformed From A Single App To Platform Single App To Connected Platform Commerce-Powered CRM Data Reporting Automation Content Messaging Payments Payments Network Marketplace Academy 8
Slide 9: We help customers scale across all stages of their digital journey
We help customers scale across all stages of their digital journey Newer to digital Early to digital Digitally Mature Industrials Software Electronics Manufacturing Marketing Hub Marketing, Sales, CMS Hubs Marketing, Sales, Service Hubs 9
Slide 10: Our TAM is large and expanding
Our TAM is large and expanding 10% CAGR $72B1 1000 - 2000 1 $45B 100 - 999 employees 1 - 99 2022 Software TAM for Marketing, Sales, Service, CMS, and Ops 2027 1 Includes Total Addressable Market for software in HubSpot’s core product groups including Marketing Hub, Sales Hub, Service Hub, Operations
Slide 11: Wide Breadth of Distribution
Wide Breadth of Distribution Product Partner Direct led led led 11
Slide 12: Award Winning Culture
Award Winning Culture #2 Best Place to #1 Best CEOs for 100 Best Best Workplaces Work in 2022 by Women by Companies to for Millennials™ Glassdoor Comparably Work For® by by Great Places to Great Places to Work Work 12
Slide 13: The HubSpot Journey
The HubSpot Journey Operations Hub Launch CMS Hub Payments Launch Launch 100K $2b Customers ARR 2 PieSync CRM Acquisition Launch Service Hub Launch $1b Sales Hub ARR 2 Launch 1 Performable Acquisition $500m Marketing Hub Launch $250m $100m $50m '06 HubSpot Founded Revenue 1 2 Sales Hub originally la
Slide 14: Winning combination for growth
Winning combination for growth Strong culture & team Pace of innovation + Breadth of distribution Large, expanding TAM 14
Slide 15: Financial Overview Q2 2023
Financial Overview Q2 2023 I
Slide 16: Strong Revenue Growth
Strong Revenue Growth Quarterly Revenue ($m) $529 Q2’23 revenue $529m revenue growth yoy 26%1 $82 Q1’17 Q2‘23 1 Excludes impact of foreign currency. Q2’23 revenue growth was 25% as reported and 26% in constant currency. Constant Currency is presented by converting current and comparative prior perio
Slide 17: Growing Profitability with Scale
Growing Profitability with Scale Quarterly Non-GAAP Operating Profit 1 ($m) $74 Q2’23 operating profit1 $74m operating profit1 14.0% margin $1 Q1’17 Q2‘23 1 Non-GAAP operating profit excludes expenses associated with stock based compensation, amortization of acquired intangible assets, acquisition relate
Slide 18: Strong Track Record of Profitable Growth
Strong Track Record of Profitable Growth Annual Revenue Annual Non-GAAP Operating Profit 2 ($m) ($m) 1 GR CA % 36 2017 2022 2017 2022 Operating Profit Margin (%, as reported) 2 Operating Profit Margin (%, constant currency) 3 1 CAGR: compound annual growth rate. Based on as-reported revenue from 2017 to
Slide 19: Increasing Free Cash Flow Generation
Increasing Free Cash Flow Generation Trailing Twelve Month Free Cash Flow 1 ($m) Q2’23 free cash flow1 $60m cash position $1.7b Q1’17 Q2‘23 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 and ca
Slide 20: Long Term Financial Framework Focused on Profitable Growth
Long Term Financial Framework Focused on Profitable Growth High Growth Growth Moderate Growth Revenue Growth > 30% ≈ 30% < 30% Operating 1% - 2% 2% - 3% 3% - 4% Margin % 1 increase per year increase per year increase per year Operating Cash ≈ Revenue Growth Flow 1 Theoretical operating margin % is no
Slide 21: Long Term Financial Targets
Long Term Financial Targets 2020 2021 2022 Q1 2023 Q2 2023 Long Term Target 1 Gross Margin 82% 81% 83% 84% 85% 81% - 83% R&D % of revenue 19% 18% 19% 19% 20% 18% - 20% S&M % of revenue 45% 45% 45% 44% 43% 30% - 35% G&A % of revenue 10% 9% 9% 8% 8% 8% - 9% Operating Margin 8% 9% 10% 13% 14% 20% - 25%
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations * All amounts are trailing twelve months