Download - 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
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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
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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
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Website + Inbound Database
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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 Q3’15
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
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$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
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$38.2M58% Y/Y
$42.9M58% Y/Y
Q1’15 Q2’15 Q3’15
$47.7M57% Y/Y
Key Financial Metrics
Key financial
metrics2011 2012 2013 2014 Q1’15 Q2’15 Q3’15
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% 23,897 63% 26,291 61% 30,868 65%
Stock-based compensation (647) -2% (691) -1% (1,194) -2% (5,596) -5% (2,055) -5% (2,077) -5% (1,078) -2%
Amortization of acquired intangibles - 0% - 0% - 0% (20) 0% (6) 0% (7) 0% (6) 0%
Non-GAAP sales and marketing 23,441 82% 34,258 66% 51,964 67% 73,193 63% 21,836 57% 24,207 56% 29,784 62%
General and administrative* 7,517 26% 9,117 18% 16,204 21% 24,958 22% 7,715 20% 8,541 20% 9,527 20%
Stock-based compensation (1,484) -5% (958) -2% (1,318) -2% (3,946) -3% (1,130) -3% (1,497) -3% (1,460) -3%
Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0%
Non-GAAP general and administrative* 6,033 21% 8,159 16% 14,886 19% 21,012 18% 6,585 17% 7,044 16% 8,067 17%
Loss from Operations
Loss from operations (24,415) -86% (18,740) -36% (34,250) -44% (48,609) -42% (11,412) -30% (11,322) -26% (13,290) -28%
Stock-based compensation 4,619 16% 2,515 5% 3,464 4% 16,358 14% 5,142 13% 5,642 13% 4,510 9%
Amortization of acquired intangibles 130 0% 224 0% 359 0% 138 0% 17 0% 26 0% 26 0%
Non-GAAP loss from operations (19,666) -69% (16,001) -31% (30,427) -39% (32,113) -28% (6,253) -16% (5,654) -13% (8,754) -18%
* Amounts have been adjusted from prior SEC filings for reclassification of customer credit card fees from cost of revenue, subscription to general and administrative expenses to conform with current year's presentation,
Three Months Ended
September 30, 2015
Three Months Ended
June 30, 20152014
Year ended December 31,
2011 2012 2013
Three Months Ended
March 31, 2015
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 HubSpot’s 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.