hubspot investor marketing deck 4q15
TRANSCRIPT
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
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
VISITOR LEAD CUSTOMER
Social Inbox + Inbound Database
Screenshot from HubSpot product, March 2015
13
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 Q4’15
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
Key Financial MetricsKey financial
metrics2011 2012 2013 2014 Q1’15 Q2’15 Q3’15 Q4’15 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
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.