Hubspot marketing 4q15 v4

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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-market16,500+

    customers

    4Customers as of 9/30/15.

  • 5

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

    REVENUE CUSTOMERS ASRPC

  • 6

    The Marketing & Sales Playbook IS BROKEN

  • VS.

    Cold Calling

    eMail Spam

    Ads

    SEO

    Blogging

    Social

    INBOUNDTRADITIONAL

    7

  • 8

    The first four years

    The last four years

    The next four years

  • 9

    Re

    ven

    ue

    Gro

    wth

    Time

    Sales

    Marketing

    Third Play

    Second Play

    First Play

  • 10

    LEAD

    OPPORTUNITY

    CUSTOMER

    All-In-OneMarketing &Sales Growth

    Platform

    VISITOR

  • 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 $10,607/year

    >$31.5 Billion

    >$31.5B

    -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 Q315

  • The Power of Inbound

    Screenshot from HubSpot product, 10/22/15 17

  • 2,700+ Agency Partners

    18Partners as of 9/30/15.

  • The InboundMovement

    Available in

    9 languages

    14,000+Registered Attendees

    2,700+Partners

    125,000+Members

    Trained and certified

    17,000+ professionals

    2.0+ millionMonthly Visits

    BLOG

    19

    Partners stat as of 9/30/15. All other stats as of October 22, 2015.

  • HubSpot customers

    see an average

    5.7x increasein lead generation

    after 12 months

    Source: Internal Analysis of >3,000 customers, 2014

    Month 1 Month 12Customer Age In Months

    20

  • 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1'15 Q2'15 Q3'15

    Customer Growth

    21

    5,783

    8,159

    10,111

    13,607

    14,746

    15,839 16,854

  • 22Pricing as of November 4, 2015

    HubSpot Pricing Today

    Upgrade based on

    contact database

    size.

    Upgrade based on features.

    Cross sell new

    products into both

    marketing and

    sales customers

  • Average Subscription Revenue Per Customer

    23

    $5,395

    $6,580

    $7,752

    $8,926

    $9,740

    $-

    $1,000

    $2,000

    $3,000

    $4,000

    $5,000

    $6,000

    $7,000

    $8,000

    $9,000

    $10,000

    2011 2012 2013 2014 Q1'15 Q2'15 Q3'15

    Editions Editions + Contacts

    $10,127 $10,607

    Editions + Contacts + Add Ons

  • 2009 2010 2011 2012 2013 2014

    Revenue Growth

    $6.6M$15.4M

    $28.6M

    $51.6M

    $77.6M

    $115.9M

    24

    $38.2M58% Y/Y

    $42.9M58% Y/Y

    Q115 Q215 Q315

    $47.7M57% Y/Y

  • Key Financial Metrics

    Key financial

    metrics2011 2012 2013 2014 Q115 Q215 Q315

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

    % of revenue

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

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

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

    Operating (Loss)

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

    All percentages for historical period are non-GAAP 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. 25

  • LEAD

    OPPORTUNITY

    CUSTOMER

    All-In-OneMarketing &

    Sales Platform

    VISITOR

    26

  • 28

  • 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, Inc.

    GAAP to Non-GAAP Reconciliation

    $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues $ '000s

    % of

    Revenues

    Cost of Revenue

    Subscription* 4,964 17% 9,689 19% 18,745 24% 23,655 20% 6,940 18% 7,484 17% 8,470 18%

    Stock-based compensation (16) 0% (27) 0% (50) 0% (128) 0% (67) 0% (92) 0% (89) 0%

    Amortization of acquired intangibles (130) 0% (224) 0% (359) 0% (118) 0% (11) 0% (19) 0% (20) 0%

    Non-GAAP subscription* 4,818 17% 9,438 18% 18,336 24% 23,409 20% 6,862 18% 7,373 17% 8,361 18%

    Professional services and other 6,368 22% 6,004 12% 8,759 11% 11,425 10% 3,525 9% 3,789 9% 4,008 8%

    Stock-based compensation (131) 0% (100) 0% (211) 0% (498) 0% (257) -1% (347) -1% (315) -1%

    Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0%

    Non-GAAP professional services and other 6,237 22% 5,904 11% 8,548 11% 10,927 9% 3,268 9% 3,442 8% 3,693 8%

    Gross Profit

    Gross Profit* 17,221 60% 35,911 70% 50,130 65% 80,796 70% 27,701 73% 31,668 74% 35,233 74%

    Stock-based compensation 147 1% 127 0% 261 0% 626 1% 324 1% 439 1% 404 1%

    Amortization of acquired intangibles 130 0% 224 0% 359 0% 118 0% 11 0% 19 0% 20 0%

    Non-GAAP gross profit* 17,498 61% 36,262 70% 50,750 65% 81,540 70% 28,036 73% 32,126 75% 35,657 75%

    Operating Expenses

    Research and development 10,031 35% 10,585 21% 15,018 19% 25,638 22% 7,501 20% 8,158 19% 8,128 17%

    Stock-based compensation (2,341) -8% (739) -1% (691) -1% (6,190) -5% (1,633) -4% (1,629) -4% (1,568) -3%

    Amortization of acquired intangibles - 0% - 0% - 0% - 0% 0% - 0% - 0%

    Non-GAAP research and development 7,690 27% 9,846 19% 14,327 18% 19,448 17% 5,868 15% 6,529 15% 6,560 14%

    Sales and marketing 24,088 84% 34,949 68% 53,158 68% 78,809 68% 23,89