HubSpot, Inc. · NYSE:HUBS
HubSpot — Investor Presentation (February 2024)
27 slides from HubSpot's investor presentation, February 2024
Slide 1: HubSpot Overview Q4 2023
HubSpet HubSpot Overview Q4 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 $2.2b $292m2 205k3 7.7k TTM revenue TTM FCF customers employees 25%1 13% 23% 135+4 YoY growth margin YoY growth countries 1 As-reported YoY growth based on trailing twelve month period as of Q4 2023, compared to prior trailing twelve month period as of Q4 2022. 2 FCF = Free Cash
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 Lead Generation Prospecting Help Desk Content Creation Advanced Reporting Payments & Subscriptions Marketing Deal Self Service Content Process Automation Management Management Automation Billing & In
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 Best Workplaces Marketing Women by Companies to for Millennials™ Software by G2 Comparably Work For® by by Great Places to Great Places to Work Work 12
Slide 13: The HubSpot Journey
200k Customers The HubSpot Journey Clearbit Acquisition Operations Hub Launch Commerce Hub Launch CMS Hub Launch $2b 100k ARR 2 PieSync Customers CRM Acquisition Launch Service Hub Launch $1b Sales Hub ARR 2 Launch 1 Performable Acquisition $500m Marketing Hub Launch $250m $100m $50m '06 HubSpot fou
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 Q4 2023
Financial Overview Q4 2023 I
Slide 16: Strong Revenue Growth
Strong Revenue Growth Quarterly Revenue $582m Q4’23 revenue $582m revenue growth yoy 21%1 $82m Q1’17 Q4‘23 1 Excludes impact of foreign currency. Q4’23 revenue growth was 24% as reported and 21% 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 205k1 Q4’23 customers 205k1 customer growth yoy 23% 31k Q1’17 Q4‘23 1 Excludes Clearbit customers. 17
Slide 18: Growing Profitability with Scale
Growing Profitability with Scale Quarterly Operating Profit 1 $98m Q4’23 operating profit1 $98m operating profit1 17% margin $1m Q1’17 Q4‘23 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 $330m $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 $292m Q4’23 free cash flow1 $83m cash position $1.7b $14m Q1’17 Q4‘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
Slide 22: Long term financial targets
Long term financial targets 2026 Long Term 2022 Q1’23 Q2’23 Q3’23 Q4’23 2023 Target Model1 Target Model1 Gross Margin 83% 84% 85% 85% 86% 85% 84% 81% - 83% R&D 19% 19% 20% 19% 19% 19% 20% 20% % of revenue S&M 45% 44% 43% 42% 43% 43% 36% - 38% 30% - 35% % of revenue G&A 9% 8% 8% 8% 8% 8% 8% 8% % of re
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 * All amounts are trailing twelve months 27