HubSpot, Inc. · NYSE:HUBS
HubSpot — Investor Presentation (November 2024)
33 slides from HubSpot's investor presentation, November 2024
Slide 1: Investor Presentation Q3 2024
Investor Presentation Q3 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 at a Glance
HubSpot at a Glance $2.5b $406m TTM revenue TTM free cash flow2 22% 16% YoY revenue growth1 FCF margin 238,000 8,100 customers employees 23% 135+ YoY growth countries3 1 As-reported YoY growth based on trailing twelve month period as of Q3 2024, compared to prior trailing twelve month period as of Q3
Slide 4: Our mission: Help millions of organizations grow better
Our mission Help millions of organizations grow better 4
Slide 5: Early in large and expanding TAM opportunity
Early in large and expanding 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, Commerce Hub, and Breeze Intellig
Slide 6: What matters to our customers?
What matters to our customers? easy fast unified to use time to value data What it means What it means What it means Intuitive and efficient Immediate impact All your data in one place Why it matters Why it matters Why it matters Shortens the learning curve Drives greater adoption Makes HubSpot more
Slide 7: Product Strategy
Product Strategy 7
Slide 8: Our Aspiration
Our Aspiration Be the #1 AI-powered customer platform for scaling companies 8
Slide 9: Fueling growth with our Customer Platform
Fueling growth with our Customer Platform Engagement Hubs Unified data Smart CRM Embedded AI Copilot Agents AI Features Ecosystem Marketplace Academy Network 9
Slide 10: AI powers the entire Customer Platform
AI powers 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 ● Customer Ag
Slide 11: Breeze Intelligence provides best possible customer data
Breeze Intelligence provides our customers with the best possible data about their customers Company and Contact Buyer Intent Form Shortening Enrichment Enriches over 200M data points Audience and intent data to Increase conversion rates to within the CRM identify and prioritize prospects connect wi
Slide 12: Bundled CRM to Smart CRM
Bundled CRM to Smart CRM Smart Content Hub CRM Commerce Hub $2B Operations Hub Cacheflow Acquisition CRM CMS Hub Clearbit Acquisition Service Hub Sales Hub $1B Marketing Hub $500M PieSync Performable Acquisition $250M Revenue Acquisition $100M $50M ‘06 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22
Slide 13: Building a unified system of engagement for the front-office
Building a unified 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 Drive rete
Slide 14: We are a Customer Platform company
We are a Customer Platform company + Embedded AI + Breeze Intelligence + Strengthened Smart CRM + Best-in-class Engagement Hubs + Thriving and expanding ecosystem = Momentum as Customer Platform 14
Slide 15: GTM Strategy
GTM Strategy Be world-class at driving volume at the low-end and value at the high-end 15
Slide 16: Scaling Distribution
Scaling Distribution Digital-driven Partner-driven Sales-driven 16
Slide 17: Digital-driven motion is scaling
Digital-driven motion is scaling Freemium tools Help Founders Help business connect get started Customer Growth Community and Starter customer content platform Help business grow 17
Slide 18: Partner-driven motion is gaining momentum
Partner-driven motion is gaining momentum Acquiring and activating Scaling with Driving more value more partners partners with partners 75% 72% 82% of customers onboarded growth in co-selling higher ASPs by partners 18
Slide 19: Sales-driven motion is scaling effectively
Sales-driven motion is scaling effectively Enhanced Sales and Partner Training 38% 28% of Pro+ customers of new ARR Streamlined Sales are 3+ hubs from larger deals Execution %s as of the end of Q2 2024. 19
Slide 20: Financial Overview
Financial Overview Q3 2024 |
Slide 21: Strong revenue growth
Strong revenue growth $670M 20%1 Growth $82M Q3’23 → Q3’24 Q1 2017 Q3 2024 Quarterly Revenue 1 Excludes impact of foreign currency. Q3’24 revenue growth was 20% as reported and 20% in constant currency. Constant Currency is presented by converting current and comparative prior period operating resul
Slide 22: Strong customer growth
Strong customer growth 238k 23% Growth 31k Q3’23 → Q3’24 Q1 2017 Q3 2024 Quarterly Customer Count 22
Slide 23: Strong operating margin expansion
Strong operating margin expansion $125M 19% Margin Q3 2024 $1M Q1 2017 Q3 2024 Quarterly Operating Profit Operating profit and operating profit margin are non-GAAP metrics. Please refer to the appendix for a reconciliation of GAAP to non-GAAP figures. 23
Slide 24: Strong free cash flow and balance sheet
Strong free cash flow and balance sheet $406M $2.1b cash position 16% FCF Margin Q3 2024 $14M Q1 2017 Q3 2024 Trailing Twelve Month Free Cash Flow Free cash flow is a non-GAAP metric. Please refer to the appendix for a reconciliation of GAAP to non-GAAP figures. 24
Slide 25: Philosophy on balancing growth and profitability
Philosophy on balancing growth and profitability Drive durable revenue Generate operating leverage growth at scale as we scale toward long-term margin targets 25
Slide 26: Confident in our ability to deliver more leverage over time
Confident in our ability to deliver more leverage over time 20-22% 25% 2027 Long-Term Margin Target Margin Target Forward-looking non-GAAP operating profit margin targets reflect our current operating plan as of November 6, 2024 and are subject to change as future events and opportunities arise. 26
Slide 27: 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 27
Slide 28: Thank You
Thank You + + +
Slide 29: Appendix
Appendix 29
Slide 30: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations 30
Slide 31: Non-GAAP Operating Income
Non-GAAP Operating Income 31
Slide 32: Free cash flow
Free cash flow December 31, 2020 December 31,2021 December 31, 2022 December 31,2025 March 31,2024 June 30,2024 September 30, 2024 $7005 $0005 $70005 $70005 $70005 $0005 $0005 GAAP net cash and cash equivalents provided by (used in) operating 88,913 238,728 273,177 350,972 396,990 438,275 508,771 Pu
Slide 33: 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