Hubspot, Inc. · NYSE:HUBS
Hubspot — Q4 2021 Earnings Presentation
28 slides from Hubspot's earnings presentation, February 2022
Slide 1: Investor Presentation Q4 2021
Investor Presentation Q4 2021
Slide 2: Important Information
Important Information 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 for future financial and operational performance and operating expenditures, expec
Slide 3: Overview
Overview We provide a CRM platform with award-winning software, services, and support to transform the way organizations attract, engage, and delight customers. ~135,000 120+ 13 Total Customers Countries Office Locations Worldwide 3
Slide 4: Snapshot
Snapshot ● CRM platform for SMEs ● Large and growing TAM opportunity ● Delivering durable growth at scale ● Balancing fast growth with profitability ● Recurring SaaS revenue model ● Strong underlying unit economics ● Extensive App & Solutions Partner ecosystem 4
Slide 5: HubSpot’s Journey
HubSpot’s Journey
Slide 6: HubSpot’s mission is to help millions of organizations grow better
HubSpot’s mission is to help millions of organizations grow better. 6
Slide 7: What does it mean to grow better?
What does it mean to grow better? Where others annoy, Where others harass, Where others ignore, you attract. you help. you enable. Where others may sacrifice the customer experience to grow, you find ways to grow better. 7
Slide 8: Customers Accelerate Growth
Customers Accelerate Growth But many companies view them as an afterthought. 8
Slide 9: We’ve transformed our business around a new model of growth
We’ve transformed our business around a new model of growth The Flywheel 9
Slide 10: Each time we reduce friction for our customers, we fuel our own flywheel
Each time we reduce friction for our customers, we fuel our own flywheel. And we’re working to enable millions of organizations to do the same. 10
Slide 11: We evolved from an app to a platform
To do so, we evolved from an app to a platform... Marketing App ...because the customer experience should be seamless. 11
Slide 12: We dramatically expanded our offering and TAM through product development
We dramatically expanded our offering, and in turn, our TAM, through product development HubSpot at IPO HubSpot today MARKETING MARKETING SALES SERVICE CMS OPERATIONS 2000 2000 Employee Size 200 200 20 20 2 2 because every company should be able to grow better, and no company should have to outgrow
Slide 13: Our Product Pricing
Our Product Pricing Marketing Sales Service CMS Operations Hub Hub Hub Hub Hub Enterprise $3,200 + $1,200 + $1,200 + $1,200 $2,000 Professional $890 + $500 + $400 + $400 $800 Starter $50 + $50 + $50 + $25 $50 Free Tools CRM Suite: Get access to every Starter, Professional, or Enterprise product, bun
Slide 14: All of that is just the beginning...
All of that is just the beginning... Began as an App Became a Suite Becoming a Platform We’re focused on helping companies grow better in ever expanding ways. 14
Slide 15: $1B ARR milestones
Operations Hub Launch CMS Hub Launch 100K customers PieSync $1B Acquisition ARR CRM Launch Service Hub Launch Marketing Hub Launch Sales Hub* Launch Hubspot Performable $500M founded Acquisition $250M $100M $50M '06 Revenue *Originally launched and branded as “Sidekick” 15
Slide 16: HubSpot Grow Better
HubSpxt Grow Better
Slide 17: Financial Review Q4 2021
Financial Review Q4 2021
Slide 18: Revenue growth is strong
Revenue growth is strong $375 $250 AGR C 41% Marketing $125 $0 Q3’14* Q4’21 Revenue ($m) *IPO CAGR: compound annual growth rate 18
Slide 19: Large international growth opportunity
Large international growth opportunity International Revenue Increasing % of Revenue $m $180 $120 A GR Q3 2014* Q4 2021 C 57% 22% 46% $60 $0 Q3’14* Q4’21 *IPO CAGR: compound annual growth rate 19
Slide 20: Strong Unit Economics Delivering Sustainable Profitability
Strong Unit Economics Delivering Sustainable Profitability 81% 70% 10.3% -32% Q3’14* Gross Margin (Non-GAAP) Operating Margin (Non-GAAP) Q4’21 All percentages for historical periods are non-GAAP and exclude expenses associated with stock based compensation, amortization of acquired intangible assets
Slide 21: Generating Positive Free Cash Flow
Generating Positive Free Cash Flow $200 $100 $0 ($100) Q3’14* Trailing Twelve Months Free Cash Flow ($m) Q4’21 All amounts are non-GAAP. Free cash flow is defined as cash and cash equivalents provided by (used in) operating activities less purchases of property and equipment and capitalization of soft
Slide 22: Financial framework focused on profitable growth
Financial framework focused on profitable growth High Growth Growth Moderate Growth Revenue Growth >30% ≈30% <30% Operating 1% - 2% 2% - 3% 3% - 4% Margin %* increase per year increase per year increase per year Operating Cash ≈Revenue Growth Flow *Theoretical operating margin % is non-GAAP and exclu
Slide 23: Long Term Financial Target
Long Term Financial Target Long Term 2016 2017 2018 2019 2020 2021 Target Gross Margin 78% 81% 82% 82% 82% 81% 81% - 83% R&D % of revenue 14% 15% 18% 18% 19% 18% 18% - 20% S&M % of revenue 55% 52% 46% 45% 45% 45% 30% - 35% G&A % of revenue 14% 12% 11% 11% 10% 9% 8% - 9% Operating Margin -4% 2% 6% 8%
Slide 24: Appendix
Appendix HubSppt
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 25
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 26
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 27
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 28