HubSpot Investor Marketing Deck 4q15

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  • This presentation includes certain forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995,

    including statements concerning our position to execute on our growth strategy in the mid-market, and our ability to expand our leadership

    position and market opportunity for our inbound platform. These forward-looking statements include, but are not limited to, plans, objectives,

    expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words

    such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. These forward-looking statements

    reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently

    available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as

    reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations

    or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking

    statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our history of losses, our

    ability to retain existing customers and add new customers, the continued growth of the market for an inbound platform; our ability to differentiate

    our platform from competing products and technologies; our ability to manage our growth effectively to maintain our high level of service; our

    ability to maintain and expand relationships with our marketing agency partners; our ability to successfully recruit and retain highly-qualified

    personnel; the price volatility of our common stock, and other risks set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q

    filed on November 4, 2015 and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this

    document as a result of new information, future events or otherwise.

    Safe Harbor

  • 3

  • An inbound marketing and sales

    SaaS platform

    Focused on the

    mid-market18,000+

    customers

    4Customers as of 12/31/15.

  • 5

    Continued Momentum Since IPOGROWTH DRIVERS: Domestic | International | Upsell Customer

    REVENUE CUSTOMERS ASRPC

  • The Marketing & Sales Playbook IS BROKEN

    6

  • VS.

    Cold Calling

    eMail Spam

    Ads

    SEO

    Blogging

    Social

    INBOUNDTRADITIONAL

    7

  • The first four years

    The last four years

    The next four years

    All In One

    8

  • 9

    Re

    ven

    ue

    Gro

    wth

    Time

    Sales

    Marketing

    Third Play

    Second Play

    First Play

    9

  • LEAD

    OPPORTUNITY

    CUSTOMER

    All-In-OneMarketing &Sales Growth

    Platform

    VISITOR

    10

  • Platform > Point Solutions

    11

  • Screenshot from HubSpot product, 9/18/14

    Blogging + SEO

    12

  • VISITOR LEAD CUSTOMER

    Social Inbox + Inbound Database

    Screenshot from HubSpot product, March 2015

    13

  • Website + Inbound Database

    14

  • 15

    Website

    Reporting

    Ads

    INBOUND15 Paid Product Launches

  • 16

    Total Addressable

    Market

    International

    increases companies

    &

    New products

    grow ASRPC

    3M companies

    X $11,135

    >$33 Billion

    >$33B

    -3.0M is US, CAN, and Europe. 1.6M mid-market businesses with a web presence in the United States and Canada. 1.4M mid-market businesses with a web presence in Europe.

    -AMI Partners data, 2014. Avg. Subscription Revenue per Customer from Q415

  • The Power of Inbound

    Screenshot from HubSpot product, 02/04/16 17

  • 2,900+ Agency Partners

    18Partners as of 12/31/15.

  • The InboundMovement

    Available in

    9 languages

    14,000+Registered Attendees

    2,900+Partners

    130,000+Members

    Trained and certified

    27,000+ professionals

    2.5 millionMonthly Visits

    BLOG

    19

    Partners stat as of 12/31/15. All other stats as of February 5, 2016.

  • HubSpot customers

    see an average

    5x increasein lead generation

    after 24 months

    Source: Internal Analysis of >3,000 customers, 2015

    Month 1 Month 24Customer Age In Months

    20

  • 21Pricing as of December 31, 2015

    HubSpot Pricing Today

    Upgrade based on

    contact database

    size.

    Upgrade based on features.

    Cross sell new

    products into both

    marketing and

    sales customers

  • $5,395

    $6,580

    $7,752

    $8,926

    $10,419

    $-

    $2,000

    $4,000

    $6,000

    $8,000

    $10,000

    $12,000

    2011 2012 2013 2014 2015

    22

    Average Subscription Revenue Per Customer

    Editions + Contacts + Add Ons

    Editions Editions + Contacts

    $9,740

    $10,127

    $10,607

    $11,135

    1Q15 2Q15 3Q15 4Q15

  • 23

    Customer Growth

    14,746

    15,839

    16,854

    18,116

    1Q15 2Q15 3Q15 4Q155,783

    8,159

    10,111

    13,607

    18,116

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    18,000

    20,000

    2011 2012 2013 2014 2015

  • 24

    Revenue Growth

  • Key Financial MetricsKey financial

    metrics2011 2012 2013 2014 Q115 Q215 Q315 Q415 2015

    Gross Margin 61% 70% 65% 70% 73% 75% 75% 75% 75%

    R&D 27% 19% 18% 17% 15% 15% 14% 14% 14%

    S&M 82% 66% 67% 63% 57% 56% 62% 55% 58%

    G&A 21% 16% 19% 18% 17% 16% 17% 15% 16%

    Operating (Loss)

    / Income %(69%) (31%) (39%) (28%) (16%) (13%) (18%) (-8%) (14%)

    CFFO (44%) (11%) (26%) (11%) (2%) 4% (8%) 5% 0%

    All percentages for historical period are non-GAAP (other than CFFO) and exclude expenses associated with stock based compensation and amortization of

    acquired intangibles. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. 26

  • Develop New

    Products

    28

    Growth Strategy

    Large Domestic

    Opportunity

    Large International

    Opportunity

    Upsell Customer

    Base

    1 2

    3 4

  • Thank You

    29

  • GAAP to Non-GAAP Reconciliation

    30

  • HubSpot CRM.

    Say goodbye to manual tasks and confusing features. Say hello to HubSpot CRM.

    Stores a companies most important prospect & customer data

    Designed with ease of use for small companies in mind

    Optional integration with HubSpots Marketing platform and Sidekick

    Free product anyone can use, integrates seamlessly with paid add-ons (Sidekick)

    31Screenshot of CRM Product, March 2015.

  • Sidekick.

    A free, lightweight set of inbox productivity tools that sales folks will love.

    Track email opens & clicks, schedule emails, and leverage templates right from your inbox

    Surfaces useful details about the contacts & companies you are communicating with

    Connects to HubSpot Marketing, Salesforce or HubSpot CRM

    Free, $10 & $ 50 user/month versions

    32Screenshot of Sidekick product, March 2015.