#1Investor Presentation Q3 2019 HubSpot#2Important 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, expected growth, and business outlook, including our long-term financial framework; our focus on profitable growth; cash flow and margin improvement expectations; our product plans, strategies, and trends; our ability to expand our total addressable market; our position to execute on our growth strategy and related growth drivers; our opportunities in international markets; 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 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 5, 2019 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. 2#3HubSpot Overview We provide a growth platform with award-winning software, services, and support to transform the way organizations attract, engage, and delight customers. 68,800+ Total Customers 100+ 9 Countries Office Locations Worldwide 3#4HubSpot Snapshot • Recurring SaaS revenue model Growth platform for SMBs • Large, growing TAM • Balancing fast growth with profitability • Strong underlying unit economics • Experienced team 4#5HubSpot's Journey#6HubSpot's mission is to help millions of organizations grow better. a#7What does it mean to grow better? Where others annoy, you attract. Where others harass, you help. Where others ignore, you enable. Where others may sacrifice the customer experience to grow, you find ways to grow better. 7#8More than a kind sentiment, it's a key strategy Word of Mouth Google HubSpot Blog 13% Review Sites 3% Industry Publications 3% Social Media 3% Source: HubSpot Customer Research June - - 2018 How did you first learn about HubSpot? 26% 33% 8#9Customers Accelerate Growth But many companies view them as an afterthought. Marketing Sales Customers 9#10We've transformed our business around Promoters Added & Lost a new model of growth Traffic Added & Lost Customers Added & Lost Delight Customers Attract Engage The Flywheel Free Users Added & Lost 10#11Each 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. 11#12To do so, we evolved from an app to a suite. Marketing App Service Hub CRM Marketing eting Hub Sales Hub because the customer experience should be seamless. 12#13We dramatically expanded our offering 2017 Today Service Hub Marketing Enterprise Profession Starter Free CRM Starter Sales Hub Service Hub prise Professional Starter Marketing Profession Enterprise Starter Free CRM Starter Professional Enterprise Sales Hub because every company should be able to grow better, and no company should have to outgrow it. 13#14Employee Size We expanded TAM through product development Since IPO we've expanded our TAM by adding Sales and Service Hubs and by adding new Enterprise and Starter tiers 2000 200 20 20 2 MARKETING HubSpot at IPO SALES SERVICE Employee Size 2000 200 20 20 2 HubSpot today MARKETING SALES SERVICE 28 14#15Our Product Pricing Marketing Hub Sales Hub Service Hub Enterprise $3,200 + $1,200 + $1,200 + Professional $800 + $500 + $400 + $50 + $50 + $50 + Starter CRM Free Growth Suite Bundle: 25% Off When Purchasing All Three Hubs At Any Pricing Tier ] Note: All prices are monthly subscription prices. "+" indicates additional cost for Contacts for Marketing Hub customers and additional cost for Users for Sales Hub customers. E.g. Marketing Hub professional subscription comes with 1,000 contacts and Sales Hub professional comes with 5 users. Customers must pay for additional contacts and users above these levels. ४ 15#16Began as an App Marketing All of that is just the beginning... Became a Suite Service Hub CRM Marketing keting Hub Sales Hub Becoming a Platform Service Hub CRM Marketin ting Hub Sales Hub Integrations We're focused on helping companies grow better in ever expanding ways. 16#17HubSpot founded The HubSpot Journey 9 Offices Globally Most Recent in Paris INBOUND18 24K Registrants 2018 Crossed $250M revenue 2016 Singapore Office Crossed $100M Opening Crossed $50M revenue 2014 Performable Acquisition 2011 revenue 2012 IPO 2014 2015 Crossed $500M revenue 2018 Surpassed 2,000 Employees '06 '07 '08 '09 '10 '11 '12 13 '14 '15 '16 '17 '18 MARKETING HUB *Originally launched as "Sidekick" CRM SALES HUB* SERVICE HUB#18HubSpot Grow Better#19Financial Review Q3 2019#20*IPO $180 $135 Revenue growth is strong $90 42% CAGR $45 Q3'14* Q3'19 Revenue ($m) 20#21$70 $60 $50 $40 $30 $20 $10 International Growth is Strong Growing Fast 60% CAGR $0 Q3'14* Q3'19 International Revenue ($m) *IPO Increasing % of Revenue Q3 2014* 22% Q3 2019 40% 21#2270% -32% Q3'14* Realizing Leverage in Profitability Gross Margin (Non-GAAP) Operating Margin (Non-GAAP) 82% 6.1% Q3'19 All percentages for historical periods are non-GAAP and exclude expenses associated with stock based compensation, amortization of acquired intangible assets and acquisition related expenses. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. *IPO 22#23$75 $50 $25 $0 $-25 Generating Positive Free Cash Flow $-50 Q3'14* Trailing Twelve Months Free Cash Flow ($m) Q3'19 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 software development costs. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. *IPO 23#24Financial framework focused on profitable growth High Growth Growth Moderate Growth Revenue Growth >30% ≈30% <30% Operating Margin %* 1% - 2% increase per year 2% -3% increase per year Operating Cash Flow Revenue Growth 3% -4% increase per year *Theoretical operating margin % is non-GAAP and excludes expenses associated with stock based compensation, amortization of acquired intangible assets and acquisition related expenses. 24#25Long Term Target 2016 2017 2018 Q1'19 Q2'19 Q3'19 Long Term Target Gross Margin 78% 81% 82% 82% 82% 82% 81% - 83% R&D 14% 15% 18% 18% 18% 18% 16% - 18% % of revenue S&M 55% 52% 46% 44% 45% 47% 30% - 35% % of revenue G&A 14% 12% 11% 11% 11% 10% 10% % of revenue Operating -4% 2% 6% 9% 8% 6% 20%-25% Margin Note: These estimates reflect our current operating plan as of 11/05/2019 and are subject to change as future events and opportunities arise. All percentages are non-GAAP and exclude expenses associated with stock based compensation, amortization of acquired intangible assets and acquisition related expenses. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. 25#26Key Takeaways Business momentum is strong Financial model focused on growth and operating leverage Expanding TAM opportunity in all directions#27Appendix HubSpot#28Service Hub CRM Marketing Sales Hub Marketing Tools Video Social media Content tools Email marketing Marketing automation 28#29Service Hub CRM Marketing Sales Hub Sales Tools Calling Documents Email sequences Sales automation Meeting scheduling 29#30Service Hub CRM Marketing HUL Sales Hub Service Tools Ticketing Help desk Knowledge base Customer feedback 30#31Service Hub CRM Sales Hub Marketing CRM Tools Meetings Lead flows Conversations Lead analytics Content management 31#32GAAP to Non-GAAP Reconciliation 2016 2017 % of $'000s Revenues % of $'000s Revenues 2018 % of '000s Revenues $ '000s March 31, 2019 % of Revenues Three Months Ended Three Months Ended June 30, 2019 Three Months Ended September 30, 2019 $'000s % of Revenues $'000s % of Revenues Cost of Revenue Subscription 41,182 15% 51,563 14% 69,718 14% 21,301 Stock-based compensation (512) 0% (658) 0% (1,476) 0% (614) 14% 0% 23,578 (822) 14% -1% 25,671 15% (854) Amortization of acquired intangibles (57) 0% (96) 0% (1,394) 0% (800) -1% (800) 0% (762) Acquisition related expenses 0% 0% 0% Non-GAAP subscription 40,613 15% 50,809 14% 66,848 13% 19,887 13% Professional services and other 20,683 8% 24,166 6% 30,639 6% 8,277 Stock-based compensation (1,640) -1% (2,327) -1% (2,924) -1% (1,019) Amortization of acquired intangibles 0% 0% 0% Acquisition related expenses 0% 0% 0% Non-GAAP professional services and other 19,043 7% 21,839 6% 27,715 5% 7,258 ༄ཤྩ ཙུཤྩ 0% 0% 21,956 13% 24,055 7,564 5% 7,592 -1% (666) 0% (614) 0% 0% ន ន ន ចិន ន ន 0% 0% 0% 14% 6,898 4% 6,978 Gross Margin Gross margin 209,102 77% 299,883 80% 412,623 Stock-based compensation 2,152 1% 2,985 1% 4,400 Amortization of acquired intangible assets 57 0% 96 0% 1,394 Acquisition related expenses 0% 0% Non-GAAP gross margin 211,311 78% 302,964 81% 418,417 Operating Expenses Research and development 45.997 17% 70,373 19% 117,603 Stock-based compensation (8,828) -3% (12,816) -3% (23,328) Amortization of acquired intangible assets 0% 0% Acquisition related expenses 0% (1,266) 0% (2,696) Non-GAAP research and development 37,169 14% 56,291 15% 91,579 Sales and marketing 162,647 60% 212,859 57% 267,444 Stock-based compensation (13,352) -5% (19,016) -5% (31,099) Amortization of acquired intangible assets (27) 0% (7) 0% Acquisition related expenses 0% 0% Non-GAAP sales and marketing 149,268 55% 193,836 52% 236,345 General and administrative 45,120 17% 56,787 15% 75,834 Stock-based compensation. (8,343) -3% (12,500) -3% (17,434) Amortization of acquired intangible assets 0% 0% Acquisition related expenses 0% 0% Non-GAAP general and administrative 36,777 14% 44,287 12% 58,400 ཙྪཾ རྟྲྀ ཎྜ ཎྜ ། སྐྱེ ཚེ ཚོ རྞྞ སྠཽ ཻ ཻཚོ ཚོ རྫ ཙྪཾམཚོསྨྱོ 80% 1% 122,220 1,633 81% 132,113 81% 140,358 81% 1% 1,488 1% 1,468 1% 0% 800 1% 800 0% 762 0% 0% 82% 0% 0% 0% 124,653 82% 134,401 82% 142,588 82% 23% 35,177 23% 40,456 25% 39,847 23% -5% (7,091) -5% (10,553) -6% (8,019) -5% 0% 0% 0% 0% -1% (32) 0% [32] 0% (30) 0% 28,054 18% 29,871 18% 31,798 18% 74,905 49% 84,079 52% 91,283 53% (7,804) -5% (10,523) -6% (8,947) -5% 0% 0% 0% 0% 0% 0% 0% 67,101 44% 73,556 45% 82,336 47% 21,174 14% 23,303 14% 23,300 13% (4,677) -3% (6,099) -4% (5,357) -3% 0% 0% 0% 0% 0% 0% 16,497 11% 17,204 11% 17,943 10% Loss from Operations Loss from operations (44,662) -16% (40,136) -11% (48,258) -9% (9,036) -6% (15,725) -10% (14,072) -8% Stock-based compensation 32,675 12% 47,317 13% 76,261 15% 21,205 14% 28,663 18% 23,791 14% Amortization of acquired intangible assets 84 0% 103 0% 1,394 0% 800 1% 800 0% 762 0% Acquisition related expenses 0% 1,266 0% 2,696 1% 32 0% 32 0% 30 0% Non-GAAP loss from operations (11,903) -4% 8,550 2% 32,093 6% 13,001 9% 13,770 8% 10,511 6% 32#33GAAP to Non-GAAP Reconciliation Three Months Ended September 30, 2014 % of 000s Revenues Three Months Ended December 31, 2014 % of $'000s Revenues % of '000s Revenues Three Months Ended Three Months Ended March 31, 2015 June 30, 2015 % of $'000s Revenues Three Months Ended September 30, 2015 % of $'000s Revenues Three Months Ended December 31, 2015 % of '000s Revenues Three Months Ended March 31, 2016 % of $ 000s Revenues Three Months Ended June 30, 2016 % of $'000s Revenues Three Months Ended September 30, 2016 % of '000s Revenues Gross Margin Gross margin 21,243 70% 24,228 71% 27,701 73% 31,668 74% 35,233 74% 39,419 Stock-based compensation 108 0% 326 1% 324 1% 439 1% 404 1% 457 Amortization of acquired intangible assets 6 0% 6 0% 11 0% 19 0% 20 0% 20 Acquisition related expenses 0% 0% 0% 0% 0% Non-GAAP gross margin 21,357 70% 24,560 72% 28,036 73% 32,126 75% 35,657 75% 39,896 Loss from operations (10,957) -36% (19,939) -58% (11,412) -30% (11,322) -26% (13,290) -28% (10,449) -20% Stock-based compensation 1,266 4% 12,844 38% 5,142 13% 5,642 13% 4,510 9% 6,015 Amortization of acquired intangible assets 13 0% 13 0% 17 0% 26 0% 26 0% 26 Acquisition related expenses Non-GAAP loss from operations (9,678) 0% -32% (7,082) 0% -21% (6,253) 0% -16% 0% 0% (5,654) -13% (8,754) -18% (4,408) ន់ ន ន នី ន ន ន នី 44,989 418 76% 1% 49,779 77% 608 1% 54,777 577 78% 1% 18 0% 13 0% 13 0% 0% 0% 0% 45,425 77% 50,400 78% 55,367 78% (9,861) -17% (11,030) -17% (9,951) -14% 6,231 11% 8,475 13% 8,695 12% 0% 24 0% 20 0% 20 0% 0% (3,606) -6% (2,535) 0% -4% 0% (1,236) -2% Three Months Ended December 31, 2016 % of $'000s Revenues Three Months Ended March 31, 2017 $ '000s % of Revenues Three Months Endec June 30, 2017 % of $ *000s Revenues Three Months Ended September 30, 2017 % of $'000s Revenues Three Months Ended December 31, 2017 % of $ '000s Revenues Three Months Ended March 31, 2018 % of $'000s Revenues Three Months Ended June 30,2018 % of $ '000s Revenues Three Months Ended September 30,2018 % of $'000s Revenues Gross Margin Gross margin 59,557 78% Stock-based compensation Amortization of acquired intangible assets 551 13 Acquisition related expenses Non-GAAP gross margin 60,121 79% Loss from operations (13,820) -18% Stock-based compensation 9,274 Amortization of acquired intangible assets 20 Acquisition related expenses Non-GAAP loss from operations (4,526) རྒྱུུཤྩཤྩ ཕྱེRRཕྱེ 65,180 564 79% 70,502 79% 1% 844 1% 9 0% 0% 78,716 754 38 0% 0% 65,753 80% 71,346 80% 79,508 (8,000) -10% (10,577) -12% (12,126) -12% 9,303 11% 13,006 15% 12,110 16 0% 0% 38 0% 0% 439 1,319 2% 2,429 3% 461 ËཎྜËË 81% 85,485 823 80% 50 81% 86,358 (9,433) 12% 12,898 50 Ë⪜⪜ཎྜË ཎྜ 92,179 80% 1% 967 1% 97,725 1,163 80% 106,061 80% 1,194 1% 0% 50 0% 50 0% 0% 81% 93,196 81% 98,938 81% -9% (11,324) -10% (14,052) -11% 12% 16,046 14% 19,675 50 0% 50 0% 827 802 1% 802 0% 4,342 5,574 5% 6.475 ཨུ་ཐུག# ལྕ╗R 494 0% 0% 107,749 82% (15,050) -11% 19,612 15% 0% 494 0% 1% 802 1% 5,858 4% 33#34GAAP to Non-GAAP Reconciliation Three Months Ended December 31, 2018 % of Three Months Ended March 31, 2019 % of Three Months Endec June 30, 2019 % of $ '000s Revenues $ '000s Revenues $ '000s Revenues $ '000s Three Months Ended September 30, 2019 Revenu es Gross Margin Gross margin 116,658 81% 122,220 81% 132,113 81% 140,358 81% Stock-based compensation 1,076 1% 1,633 1% 1,488 1% 1,468 1% Amortization of acquired intangible assets 800 1% 800 1% 800 0% 762 0% Acquisition related expenses 0% 0% 0% 0% Non-GAAP gross margin 118,534 82% 124,653 82% 134,401 82% 142,588 82% Loss from Operations Loss from operations (7,832) -5% (9,036) -6% (15,725) -10% (14,072) -8% Stock-based compensation 20,927 15% 21,205 14% 28,663 18% 23,791 14% Amortization of acquired intangible assets 800 1% 800 1% 800 0% 762 0% Acquisition related expenses 289 0% 32 0% 32 0% 30 0% Non-GAAP loss from operations 14,184 10% 13,001 9% 13,770 8% 10,511 6% 34#35GAAP to Non-GAAP Reconciliation GAAP net cash and cash equivalents provided by (used in) operating activites Purchases of property & equipment Capitalization of software development costs Free cash flow Trailing Twelve Months Ended September 30, 2014 $ '000s Trailing Twelve Months Ended December 31, 2014 Trailing Twelve Months Ended March 31, 2015 $ '000s $ '000s (16,464) (12,464) (10,703) (7,042) (7.266) (5,811) (4,911) (28,417) (4,634) (4,450) (24,364) (20,964) GAAP net cash and cash equivalents provided by (used in) operating activites Purchases of property & equipment Capitalization of software development costs Free cash flow GAAP net cash and cash equivalents provided by (used in) operating activites Purchases of property & equipment Capitalization of software development costs Free cash flow Trailing Twelve Months Ended June 30, 2015 Trailing Twelve Months Ended September 30, 2015 Trailing Twelve Months Ended December 31, 2015 $'000s $ '000s $ '000s (6,807) (4,815) (3,525) (3,556) (4,054) (3,829) (14,386) (12,200) Trailing Twelve Months Ended March 31, 2016 Trailing Twelve Months Ended June 30, 2016 Trailing Twelve Months Ended September 30, 2016 $ '000s $ '000s $ '000s (423) 3,571 10,635 19,733 (8,427) (14,043) (18,513) (19,595) (4,314) (4,978) (5,034) (5,362) (13,164) (15,450) (12,912) (5,224) Trailing Twelve Months Ended December 31, 2016 $ '000s Trailing Twelve Months Ended March 31, 2017 $ '000s Trailing Twelve Months Ended June 30, 2017 Trailing Twelve Months Trailing Twelve Months Ended September 30, 2017 $ '000s $ '000s Ended December 31, 2017 $ '000s Trailing Twelve Months Ended March 31, 2018 Trailing Twelve Months Trailing Twelve Months Trailing Twelve Months 1 Ended Ended $ '000s June 30,2018 $ '000s September 30,2018 Ended December 31, 2018 19,366 35,279 35,364 37,893 (15,789) (14,983) (15,592) (17,528) (5,749) (2,172) (5,925) (6,577) (6,882) 49,614 (20,276) (7,071) 57,244 (20,680) (8,077) 14,371 13,195 13,483 22,267 28,487 62,018 (20,514) (9,537) 31,967 $ '000s $ '000s 65,734 (21,875) (10,491) 33,368 84,851 (22,305) (11,168) 51,378 Trailing Twelve Months Ended Trailing Twelve Months Ended Trailing Twelve March 31, 2019 June 30, 2019 Months Ended September 30, 2019 $ '000s $ '000s $ '000s 95,845 96,041 104,193 (20,331) (23,051) (26,814) (11,373) (10,690) (11,581) 64,141 62,300 65,798 ४ 35