#1HubSpot HubSpot Overview Q4 2022#2Safe Harbor Statement 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 operational expenditures, expected growth, foreign currency movement, and business outlook, including our long-term financial framework; statements regarding our positioning for future growth and market leadership; statements regarding expected market trends, future priorities and related investments, and market opportunities; statements regarding our focus on profitable growth, cash flow and margin improvement expectations; statements regarding, our product plans, strategies, and trends; statements regarding our ability to expand our total addressable market; statements regarding our position to execute on our growth strategy and related growth drivers; and statements regarding our opportunities in international markets; and statements regarding our ability to expand our leadership position and market opportunity for our CRM 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, the risk that the recently announced restructuring efforts may negatively impact our business operations and reputation with or ability to serve customers; the risk that our restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated and that the restructuring costs and charges may be greater than anticipated or incurred in different periods than anticipated; the risk that the restructuring efforts may adversely affect our internal programs and ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; and risks associated with our history of losses; our ability to retain existing customers and add new customers; the continued growth of the market for a CRM platform; our ability to differentiate our platform from competing products and technologies; our ability to manage our growth effectively in the long-term to maintain our high level of service; our ability to maintain and expand relationships with our solutions partners; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock; the impact of geopolitical conflicts, inflation, foreign currency movement, macroeconomic instability, and the COVID-19 pandemic on our business, the broader economy, our workforce and operations, the markets in which we and our partners and customers operate, and our ability to forecast our future financial performance; and other risks set forth under the caption "Risk Factors" in our 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. HubSpot 2#3HubSpot is a leading Customer Relationship Management platform for scaling companies Our mission is to help millions of organizations grow better HubSpot 3#4HubSpot at a Glance 2022 $1.73B $191M ~167K revenue FCF customers 7.4K+2 employees 39% 11% 120+ 13 yoy growth margin countries office locations 1 2022 revenue growth was 33% as reported and 39% in constant currency. Constant Currency is presented by converting current and comparative prior period operating results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at constant exchange rates rather than actual exchange rates in effect during the respective period. 2 As of 12/31/22, does not include impact of workforce reduction of approximately 500 employees announced 1/31/23. FCF = Free Cash Flow is a non-GAAP metric. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. HubSpot 4#5Sales Productivity Websites Data Sync Service Ticketing The SMB market is underserved Reporting Acquisition Marketing Automation Reporting Disconnected point solutions Data Acquisition Service Acquisition Analytics Acquisition Messaging Acquisition Marketing Automation Acquisition Cobbled enterprise solutions HubSpot 5#6HubSpot is well positioned to solve this problem Websites Sales Productivity Data Sync Service Ticketing Marketing Automation Reporting Disconnected point solutions ୪ Data Acquisition Reporting Acquisition Analytics Acquisition Messaging Acquisition Service Acquisition Marketing Automation Acquisition Cobbled enterprise solutions HubSpot 6#7Our customers are challenged by a crisis of disconnection Disconnected systems Disconnected point solutions are not the solution Disconnected people Disconnected customers People need more than software to thrive and crave community Old GTM strategies will NOT work in this new world 7#8To Help our Customers Make Connections, We've Transformed From A Single App To Platform Single App Marketing Hub™ Connected To Connected Platform Applications Marketing Hub Sales Hub™ Service Hub™ CMS Hub Operations Hub™ Connected X Commerce-Powered CRM Platform Data Reporting Automation Content Messaging Payments Connected Community Network Marketplace Academy HubSpot 8#9We help customers scale across all stages of their digital journey Newer to digital VIESMANN Industrials Marketing Hub Early to digital :: PayPlug Software Marketing, Sales, CMS Hubs Digitally Mature WyreStorm Electronics Manufacturing Marketing, Sales, Service Hubs HubSpot 9#10Our TAM is large and expanding $45B 2022 10% CAGR $72B 1000 - 2000 100 - 999 employees 1-99 Software TAM for Marketing, Sales, Service, CMS, and Ops Includes Total Addressable Market for software in HubSpot's core product groups including Marketing Hub, Sales Hub, Service Hub, Operations Hub and CMS Hub. Does not include Commerce and Payments TAM. Source: IDC and HubSpot estimates as of 9/7/2022. 2027 HubSpot10#11Wide Breadth of Distribution Product led Partner Direct led led HubSpot 11#12Award Winning Culture #2 Best Place to Work in 2022 by Glassdoor #1 Best CEOs for Women by Comparably 100 Best Companies to Work ForⓇ by Great Places to Work Best Workplaces for Millennials™ by Great Places to Work HubSpot 12#13The HubSpot Journey Performable Acquisition Marketing Hub Launch $50m CRM Launch Sales Hub Launch $100m $250m CMS Hub Launch PieSync Acquisition Operations Hub Launch 100K Customers *Payments Launch I Service Hub Launch $500m '06 '11 '12 '13 '14 '15 '16 '17 '18 '19 HubSpot founded Sales Hub originally launched and branded as "Sidekick" $1b ARR 20 '20 '21 Revenue 122 22 HubSpot 13#14Winning combination for growth Large, expanding TAM Strong culture & team Pace of innovation + Breadth of distribution HubSpot 14#15Financial Overview Q4 2022#16Strong Revenue Growth $82 Q1'17 $470 Quarterly Revenue ($m) Q4'22 Q4'22 revenue revenue $470m growth yoy 35%¹ 1 Excludes impact of unfavorable foreign currency. Q4'22 revenue growth was 27% as reported and 35% in constant currency. Constant Currency is presented by converting current and comparative prior period operating results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at constant exchange rates rather than actual exchange rates in effect during the respective period. HubSpot 16#17Strong Revenue Growth $376 2017 Annual Revenue ($m) CAGR: compound annual growth rate; based on as-reported revenue from 2017 to 2022. $1,731 2022 36% CAGR 2017 2022 -> HubSpot 17#18Growing Profitability with Scale $1 Q1'17 Quarterly Non-GAAP Operating Profit ($m) $64 Q4'22 Q4'22 operating profit $64m operating profit 13.6% margin Non-GAAP Operating Profit excludes 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. HubSpot 18#19Strong Profitability, FCF + Cash $200 Annual Non-GAAP Operating Profit ($m) 12% $169 $32 SO 50 0% 2017 2022 Operating Profit Margin (%, as reported) Operating Profit Margin (%, constant currency)¹ $191 million FCF, 2022 $1.5 billion in cash, Q4'22 1. Excludes the impact of foreign currency fluctuations and is presented by converting current and comparative prior period operating results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at constant exchange rates. See definitions and reconciliations of non-GAAP operating income and free cash flow in appendix. HubSpot 19#20Increasing Free Cash Flow Generation $250 $0 $14 Q1'17 Trailing Twelve Month Free Cash Flow ($m) $191 16% 0% Q4'22 Free Cash Flow Margin (Trailing Twelve Month, %) Free Cash Flow (Trailing Twelve Month, $m) Free cash flow is a non-GAAP metric. 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. HubSpot20#21Long Term Financial 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. HubSpot 21#22Long Term Financial Targets 2020 2021 2022 Long Term Target Gross Margin 82% 81% 83% 81% - 83% R&D % of revenue 19% 18% 19% 18% - 20% S&M % of revenue 45% 45% 45% 30% - 35% G&A % of revenue 10% 9% 9% 8% -9% Operating Margin 8% 9% 10% 20% 25% These estimates reflect our current operating plan as of 2/16/2023 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. HubSpot 22#23GAAP to Non-GAAP Reconciliations HubSpot#24GAAP to Non-GAAP Reconciliations 2018 2019 2020 2021 2022 2 of % of $'000 Revenues $'000s Revenues $ '000 % of Revenues $'000 % of Revenues $ '000 s % of Revenues Cost of Revenue Subscription Stock-based compensation 69,718 14% 98,510 15% 130,685 15% 211,132 16% 257,513 15% (1,476) 0% (3,127) 0% (4,408) 0% (6,297) 0% (9,076) -1% Amortization of acquired intangibles (1,394) 0% (3,201) 0% (2,340) 0% (937) 0% (1,203) 0% Gain on termination of operating leases 0% 0% 0% 395 0% 0% Loss on disposal of fixed assets 0% 0% 0% Non-GAAP subscription 66,848 13% 92,182 14% 123,937 14% Professional services and other 30,639 6% 31,448 5% 36,274 4% Stock-based compensation (2,924) -1% (2,829) 0% (2,536) 0% Gain on termination of operating leases 0% 0% 0% Loss on disposal of fixed assets 0% 0% 0% Non-GAAP professional services and other 27,715 5% 28,619 4% 33,738 4% ༔ག་ (600) 0% 0% 203,693 16% 247,234 14% 47,725 4% 56,746 3% (3,092) 0% (4.393) 0% 275 0% 0% (415) 0% 0% 44,908 3% 52,353 3% Gross Margin 412,623 80% 544,902 81% 716,067 81% 1,041,801 80% 1,416,710 82% Gross margin Stock-based compensation 4,400 1% 5,956 1% 6,944 1% 9,389 1% 13,469 Amortization of acquired intangible assets 1,394 0% 3,201 0% 2,340 0% 662 0% 1,203 0% Gain on termination of operating leases 0% 0% 0% (670) 0% 0% 0% 0% 0% 1,015 0% 0% Loss on disposal of fixed assets 418,417 82% 554,059 82% 725,351 82% 1,052,197 81% 1,431,382 83% Non-GAAP gross margin Operating Expenses Research and development 117,603 23% 158,237 23% 205,589 23% 301,970 23% 442,022 Stock-based compensation (23,328) -5% (33,748) -5% (39,366) -4% (61,614) -5% (107,517) Acquisition/disposition related income (2,696) -1% (357) 0% (1,287) 0% (1,152) 0% 300 Gain on termination of operating leases 0% 0% 0% 1,346 0% Loss on disposal of fixed assets 0% 0% 0% (2,036) 0% Non-GAAP research and development 91,579 18% 124,132 18% 164,936 19% 238,514 18% 334,805 Sales and marketing 267,444 52% 340,685 50% 452,081 51% 649,681 50% 886,069 Stock-based compensation (31,099) -6% (36,599) -5% (50,552) -6% (67,413) -5% (107,640) Amortization of acquired intangible assets 0% 0% (79) 0% (389) 0% (1,426) Acquisition related expenses 0% 0% 0% (367) 0% 0% 1,839 0% Gain on termination of operating leases 0% 0% (2,781) 0% Loss on disposal of fixed assets Non-GAAP sales and marketing 0% 236,345 46% 304,086 45% 401,450 45% 580,570 45% 777,003 General and administrative 75,834 15% 92,971 14% 109,225 12% 144,949 11% Stock-based compensation (17,434) -3% (21,451) -3% (24,626) -3% (28,345) -2% 197,720 (47,223) 0% (552) 0% (545) 0% (568) 0% Acquisition related expenses Gain on termination of operating leases 0% 0% 0% 421 0% Loss on disposal of fixed assets 0% 0% 0% (636) 0% Non-GAAP general and administrative 58,400 11% 70,968 11% 84,054 10% 115,821 9% 150,497 *******888* 11% -3% Loss from Operations Loss from operations (48,258) -9% (46,991) -7% (50,828) -6% (54,799) -4% (109,101) -6% Stock-based compensation. 76,261 15% 97,754 14% 121,488 14% 166,761 13% 275,849 16% Amortization of acquired intangible assets 1,394 0% 3,201 0% 2,419 0% 1,326 0% 2,629 0% Acquisition related expenses 2,696 1% 909 0% 1,832 0% 2,087 0% (305) 0% Gain on termination of operating leases 0% 0% 0% (4,276) 0% 0% Loss on disposal of fixed assets 0% 0% 0% 6,468 0% 0% Non-GAAP loss from operations 32,093 6% 54.873 8% 74.911 8% 117,567 9% 169,072 10% HubSpot#25GAAP to Non-GAAP Reconciliations Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets Non-GAAP gross margin Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets Acquisition/disposition related income (expense Non-GAAP loss from operations Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets Three Months Ended December 31, 2017 % of Revenues Three Months Ended March 31, 2018 % of $'000s Revenues Three Months Ended June 30,2018 % of $'000s Revenues Three Months Ended March 31, 2017 $ '000s % of Revenu Three Months Ended June 30, 2017 % of $'000s Revenues Three Months Ended September 30, 2017 % of $'000s Revenues $'000s 65,180 564 79% 1% 70,502 79% 78,716 81% 844 1% 754 1% 85,485 823 80% 1% 92,179 967 80% 97,725 80% 1% 1,163 1% 9 65,753 0% 80% 0% 38 0% 50 0% 50 0% 50 0% 71,346 80% 79,508 81% 86,358 81% 93,196 81% 98,938 81% (8,000) -10% 9,303 11% (10,577) 13,006 -12% (12,126) -12% (9,433) 15% 12,110 12% 12,898 -9% (11,324) 12% -10% (14,052) -11% 16,046 14% 19,675 16% 16 0% 0% 38 0% 50 0% 50 0% 50 0% 0% 0% 439 0% 827 1% 802 1% 802 1% 1,319 2% 2,429 3% 461 0% 4,342 4% 5,574 5% 6,475 5% Three Months Ended September 30,2018 $ '000s % of Revenue Three Months Ended December 31, 2018 % of $'000s Revenue Three Months Ender March 31, 2019 % of $'000s Revenue Three Months Ended June 30, 2019 Three Months Ended September 30, 2019 Three Months Ended December 31, 2019 $ '000s % of Revenu $'000s % of Revenue $'000s % of Revenue 106,061 80% 116,658 81% ###### 81% 132,113 81% 140,358 81% 150,211 81% 1,194 1% 1,076 1% 1,633 1% 1,488 1% 1,468 1% 1,367 1% 494 107,749 0% 82% 800 1% 800 1% 800 0% 762 0% 839 0% 118,534 82% ###### 82% 134,401 82% 142,588 82% 152,417 82% Non-GAAP gross margin Loss from Operations Loss from operations (15,050) -11% (7,832) -5% (9,036) -6% (15,725) -10% (14,072) -8% (8,158) -4% Stock-based compensation 19,612 15% 20,927 15% 21,205 14% 28,663 18% 23,791 14% 24,095 13% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 0% Acquisition/disposition related income (expense 802 1% 289 0% 32 0% 32 0% 30 0% 814 0% Non-GAAP loss from operations 5,858 4% 14,184 10% 13,001 9% 13,770 8% 10,511 6% 17,590 9% HubSpot#26GAAP to Non-GAAP Reconciliations Three Months Ended September 30, 2020 % of Revenues Three Months Ended December 31, 2020 $'000s Three Months Ended March 31, 2021 % of Revenues $ '000s Three Months Ended June 30, 2021 % of Revenue $'000s % of Revenue Three Months Ended March 31, 2020 Three Months Ended June 30, 2020 $ '000s % of Revenues $ '000s % of Revenues $ '000s Gross Margin Gross margin 160,683 81% 164,831 81% 185,782 81% 204,771 81% 226,631 81% 247,911 80% Stock-based compensation 1,505 1% Amortization of acquired intangible assets 880 0% Non-GAAP gross margin 163,068 82% 1,703 879 167,413 1% 1,792 1% 1,945 1% 2,007 1% 2,408 1% 0% 82% 442 188,016 0% 139 0% 239 0% 236 0% 82% 206,855 82% 228,877 81% 250,555 81% Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets Acquisition/disposition related income (expenses) Non-GAAP loss from operations (14,102) 27,463 -7% (13,625) -7% (15,461) -7% (7,641) -3% (15,032) -5% (16,602) -5% 14% 31,374 15% 31,186 14% 31,466 12% 32,423 12% 43,433 14% 900 0% 899 0% 462 0% 159 0% 345 0% 337 0% 333 0% 518 0% 340 0% 640 0% 1,195 0% 372 0% 14,594 7% 19,166 9% 16,527 7% 24,624 10% 18,931 7% 27,540 9% Three Months Ended September 30, 2021 $ '000s % of Revenues $ '000s Three Months Ended December 31, 2021 % of Revenues Three Months Ended March 31, 2022 Three Months Ended June 30, 2022 Three Months Ended September 30, 2022 Three Months Ended December 31, 2022 $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets 269,589 79% 297,670 81% 322,663 82% 342,824 81% 361,831 82% 389,393 83% 2,408 1% 2,563 1% 2,658 1% 3,631 1% 3,479 1% 3,673 1% 234 0% 228 0% 321 0% 306 0% 292 0% 283 0% Acquisition related expenses 0% 0% 0% 0% 0% 0% Gain on termination of operating leases (670) 0% 0% 0% 0% 0% 0% Loss on disposal of fixed assets 1,015 0% 0% 0% 0% 0% 0% 272,576 80% 300,461 81% 325,642 82% 346,761 82% 365,602 82% 393,349 84% Non-GAAP gross margin Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets Acquisition/disposition related income (expenses) Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP loss from operations (14,927) -4% (8,237) -2% (11,154) -3% (52,250) -12% (32,213) -7% (13,486) -3% 44,987 13% 45.914 12% 45,704 12% 81,165 19% 72,213 16% 76,768 16% 326 0% 318 0% 410 0% 752 0% 738 0% 729 0% 350 0% 170 0% 0% (281) 0% 0% 0% (4,276) -1% 0% 0% 0% 0% 0% 6,468 2% 0% 0% 0% 0% 0% 32,928 10% 38,165 10% 34,960 9% 29,386 7% 40.738 9% 64,011 14% HubSpot#27GAAP to Non-GAAP Reconciliations GAAP net cash and cash equivalents provided by (used in) operating activities Purchases of property & equipment Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Free cash flow GAAP net cash and cash equivalents provided by (used in) operating activities Purchases of property & equipment Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Free cash flow GAAP net cash and cash equivalents provided by (used in) operating activities Purchases of property & equipment Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Free cash flow GAAP net cash and cash equivalents provided by (used in) operating activities Purchases of property & equipment Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Free cash flow * All amounts are trailing twelve months March 31, 2017 $ '000s June 30, 2017 $'000s September 30, 2017 $'000s December 31, 2017 $ '000s March 31, 2018 $'000s June 30,2018 $ '000s 35,279 (14,983) (5,925) 35,364 (15,592) (6,577) 37,893 (17,528) (6,882) 49,614 (20,276) (7,071) 57,244 62,018 (20,680) (20,514) (8,077) (9,537) 14,371 13,195 13.483 22,267 28,487 31,967 September 30,2018 $'000s 65,734 (21,875) (10,491) 33,368 December 31, 2018 $'000s March 31, 2019 June 30, 2019 $ '000s $ '000s September 30, 2019 $ '000s December 31, 2019 $ '000s March 31, 2020 $ '000s June 30, 2020 $'000s 84,851 95,845 96,041 104,193 118,972 104,267 56,880 (22,305) (20,331) (23,051) (26,814) (40,372) (47,249) (48,257) (11,168) (11,373) (10,690) (11,581) (13,474) (15,422) (18,309) 48,675 51,378 64,141 62,300 65,798 65,126 41,596 38,989 September 30, 2020 $ '000s December 31, 2020 $ '000s March 31, 2021 $'000s June 30, 2021 $ '000s September 30, 2021 $'000s December 31, 2021 $ '000s March 31, 2022 $ '000s 75,878 (46,972) 88,913 128,602 200,483 204,469 238,728 258,254 (37,318) (30,143) (28,123) (26,920) (28,726) (34,699) (19,979) (21,599) (24,171) (27,857) (31,593) (33,139) (35,520) 48,675 57,602 49,048 58,853 13.401 24,830 26,428 79,044 133,141 157.904 170,786 203,291 16,623 204.658 June 30, 2022 $ '000s September 30, 2022 $'000s December 31, 2022 $ '000s 260,984 278,395 273,177 (36,252) (42,711) (37,426) (36,649) (38,851) (44,345) 13,400 1,971 201,483 198,804 191,406 HubSpot