#1HubSpot HubSpot Overview Q2 2023 କା#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 of future financial and operational performance and operational expenditures, expected growth, foreign currency movement, and business outlook, including our financial guidance for the third fiscal quarter of and full year 2023 and our long-term financial framework; statements regarding our positioning for future growth and market leadership; statements regarding the economic environment; and statements regarding expected market trends, future priorities and related investments, and market opportunities (including with respect to our expanding Total Addressable Market). 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, 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 develop new products and and technologies and to differentiate our platform from competing products and technologies; our ability to manage our growth effectively over the long-term to maintain our high level of service; our ability to maintain and expand relationships with our solutions partners; the price volatility of our common stock; the impact of geopolitical conflicts, inflation, foreign currency movement, and macroeconomic instability 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; regulatory and legislative developments on the use of artificial intelligence and machine learning; 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 $1.94B TTM revenue 27%¹ YOY growth $251M² TTM FCF 13% margin ~184K customers 120+ countries ¹ YoY growth based on trailing twelve month period as of Q2 2023, compared to prior trailing twelve month period as of Q2 2022. 2 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. 7K+ employees 13 office locations HubSpot 4#5Websites Sales Productivity Marketing Automation Data Sync Service Ticketing Reporting Disconnected point solutions The SMB market is underserved Reporting Acquisition 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 Marketing Automation Data Sync Service Ticketing Reporting Disconnected point solutions $ Reporting Acquisition Data Acquisition Service Acquisition Analytics Acquisition Messaging Acquisition Marketing Automation Acquisition Cobbled enterprise solutions HubSpot 6#7Our customers are challenged by a crisis of disconnection Disconnected systems Disconnected people Disconnected customers Disconnected point solutions are not the solution 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 Applications Connected Platform Connected Community To Connected Platform Marketing Hub™ www Sales Hub™ Network Service Hub™ Commerce-Powered CRM Data Reporting Automation Content Messaging Payments CMS Hub Marketplace Operations Hub™ 0 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 WyreSt>rm Electronics Manufacturing Marketing, Sales, Service Hubs HubSpot 9#10Our TAM is large and expanding $45B¹ 2022 10% CAGR 1000 - 2000 100 - 999 employees 1 - 99 Software TAM for Marketing, Sales, Service, CMS, and Ops ¹ 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. $72B¹ 2027 HubSpot¹0#11Wide Breadth of Distribution Product led Partner led Direct 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 HubSpot12#13The HubSpot Journey Marketing Hub Launch '06 HubSpot Founded Performable Acquisition '11 $50m '12 '13 ¹ Sales Hub originally launched and branded as "Sidekick". 2 ARR: Annual Recurring Revenue. CRM Launch Sales Hub Launch ¹ $100m '14 '15 $250m '16 Service Hub Launch '17 $500m '18 '19 CMS Hub Launch PieSync Acquisition '20 Operations Hub Launch 100K Customers. $1b ARR 2 ¹21 Payments Launch Revenue ¹22 $2b ARR 2 ¹23 HubSpot#14Winning combination for growth Large, expanding TAM Strong culture & team Pace of innovation + Breadth of distribution HubSpot¹4#15Financial Overview Q2 2023#16Strong Revenue Growth $82 Q1'17 Quarterly Revenue ($m) $529 Q2'23 Q2'23 revenue $529m 26% ¹ revenue growth yoy ¹ Excludes impact of foreign currency. Q2'23 revenue growth was 25% as reported and 26% 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. HubSpot16#17Growing Profitability with Scale $1 I Q1'17 1 Quarterly Non-GAAP Operating Profit ¹ ($m) $74 Q2'23 Q2'23 operating profit¹ operating profit¹ margin ¹ Non-GAAP operating profit excludes expenses associated with stock based compensation, amortization of acquired intangible assets, acquisition related expenses and restructuring charges. Please refer to the end of this presentation for a reconciliation of GAAP to non-GAAP figures. $74m 14.0% HubSpot 17#18Strong Track Record of Profitable Growth $376 2017 Annual Revenue ($m) 36% CAGR ¹ $1,731 2022 $9 Annual Non-GAAP Operating Profit ² 2017 ($m) $169 ¹ CAGR: compound annual growth rate. Based on as-reported revenue from 2017 to 2022. 2 See definition and reconciliation of non-GAAP operating income in appendix. 3 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. 2022 Operating Profit Margin (%, as reported) 2 3 Operating Profit Margin (%, constant currency) ³ 12% 0% HubSpot18#19Increasing Free Cash Flow Generation $300 $0 $14 Q1'17 1 Trailing Twelve Month Free Cash Flow ($m) I Free Cash Flow Margin (Trailing Twelve Month, %) 1 1 Free Cash Flow (Trailing Twelve Month, $m) $251 Q2'23 16% 0% Q2'23 free cash flow¹ $60m cash position $1.7b ¹ Free cash flow is a non-GAAP metric and 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. HubSpot 19#20Long Term Financial Framework Focused on Profitable Growth Revenue Growth Operating Margin % 1 Operating Cash Flow High Growth > 30% 1% -2% increase per year Growth ≈ 30% 2% -3% increase per year ≈ Revenue Growth Moderate Growth < 30% 3% -4% increase per year ¹ Theoretical operating margin % is non-GAAP and excludes expenses associated with stock based compensation, amortization of acquired intangible assets and acquisition related expenses. HubSpot20#21Long Term Financial Targets Gross Margin R&D % of revenue S&M % of revenue G&A % of revenue Operating Margin 2020 82% 19% 45% 10% 8% 2021 81% 18% 45% 9% 9% 2022 83% 19% 45% 9% 10% Q1 2023 Q2 2023 84% 19% 44% 8% 13% 85% 20% 43% 8% 14% Long Term Target ¹ 81% - 83% 18% - 20% 30% -35% 8% - 9% 20% - 25% ¹ These estimates reflect our current operating plan as of 8/2/2023 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 21#22GAAP to Non-GAAP Reconciliations HubSpot#23GAAP to Non-GAAP Reconciliations Cost of Revenue Subscription Stock-based compensation Amortization of acquired intangibles Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP subscription Professional services and other Stock-based compensation Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP professional services and other Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP gross margin Operating Expenses Research and development Stock-based compensation Acquisition/disposition related income Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP research and development Sales and marketing Stock-based compensation Amortization of acquired intangible assets Acquisition related expenses Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP sales and marketing General and administrative Stock-based compensation Acquisition related expenses Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP general and administrative Restructuring charges Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets Acquisition related expenses Gain on termination of operating leases Loss on disposal of fixed assets Restructuring charges Non-GAAP loss from operations $ '000s 2020 130,685 (4,408) (2,340) 123.937 36,274 (2,536) 33,738 716,067 6,944 2,340 725,351 205,589 (39,366) (1,287) 164,936 452,081 (50,552) (79) 401.450 109,225 (24,626) (545) 84,054 (50,828) 121,488 2,419 1,832 74.911 % of Revenues 15% 0% 0% 0% 0% 14% 4% 0% 0% 0% 4% 81% 1% 0% 0% 0% 82% 23% -4% 0% 0% 0% 19% 51% -6% 0% 0% 0% 0% 45% 12% -3% 0% 0% 0% 10% 0% -6% 14% 0% 0% 0% 0% 0% 8% $ '000s 2021 211,132 (6,297) (937) 395 11 (600) 203,693 47,725 (3,092) 275 (415) 44,908 1,041,801 9,389 662 (670) 1,015 1,052,197 301,970 (61,614) (1,152) 1,346 (2.036) 238,514 649,681 (67,413) (389) (367) 1,839 (2,781) 580,570 144,949 (28,345) (568) 421 (636) 115,821 (54,799) 166,761 1,326 2,087 (4,276) 6,468 117,567 % of Revenues 16% 0% 0% 0% 0% 16% 4% 0% 0% 0% 3% 80% 1% 0% 0% 0% 81% 23% -5% 0% 0% 0% 18% 50% -5% 0% 0% 0% 0% 45% 11% -2% 0% 0% 0% 9% 0% -4% 13% 0% 0% 0% 0% 0% 9% $ '000s 2022 257,513 (9,076) (1,203) P 247,234 56,746 (4,393) 52,353 1,416,710 13,469 1,203 1,431,382 442,022 (107,517) 300 334,805 886,069 (107,640) (1,426) 777,003 197,720 (47,223) 150,497 (109,101) 275,849 2,629 (305) 169,072 % of Revenues 15% -1% 0% 0% 0% 14% 3% 0% 0% 0% 3% 82% 1% 0% 0% 0% 83% 26% -6% 0% 0% 0% 19% 51% -6% 0% 0% 0% 0% 45% 11% -3% 0% 0% 0% 9% 0% -6% 16% 0% 0% 0% 0% 0% 10% Three Months Ended March 31, 2023 $'000s 68,339 (2,745) (399) 65,195 13,707 (1,087) 12,620 419,574 3,832 399 423,805 127,683 (33,324) 94,359 250,683 (30,169) (446) 220,068 57,405 (15,712) 41,693 28,570 (44,767) 83,037 845 28,570 67,685 % of Revenues 14% -1% 0% 0% 0% 13% 3% 0% 0% 0% 3% 84% 1% 0% 0% 0% 84% 25% -7% 0% 0% 0% 19% 50% -6% 0% 0% 0% 0% 44% 11% -3% 0% 0% 0% 8% 6% -9% 17% 0% 0% 0% 0% 6% 13% Three Months Ended June 30, 2023 $'000s 73,824 (3,516) (405) 69,903 13,462 (1,459) 12,003 441,852 4,975 405 447,232 169,955 (64,060) 105,895 265,294 (38,625) (446) 226,223 61,222 (20,343) 40,879 63,880 (118,499) 128,003 851 63,880 74,235 % of Revenues 14% -1% 0% 0% 0% 13% 3% 0% 0% 0% 2% 84% 1% 0% 0% 0% 85% 32% -12% 0% 0% 0% 20% 50% -7% 0% 0% 0% 0% 43% 12% -4% 0% 0% 0% 8% 12% -22% 24% 0% 0% 0% 0% 12% 14% HubSpot#24GAAP to Non-GAAP Reconciliations Three Months Ended March 31, 2017 % of $'000s Revenu Three Months Ended June 30, 2017 % of $'000s Revenues Three Months Ended September 30, 2017 % of $'000s Revenues 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 Acquisition related expenses Non-GAAP gross margin Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets 65,180 564 9 65,753 Acquisition/disposition related income (expenses) Non-GAAP loss from operations (8,000) -10% 9,303 11% 16 0% 0% 2% 1,319 Three Months Ended September 30,2018 % of $'000s Revenu 106,061 1,194 494 79% 1% 0% 80% 107.749 494 802 5,858 80% 1% 0% 0% 82% (15,050) -11% 19,612 15% 0% 1% 4% 70,502 844 71,346 (10,577) 13,006 2,429 116,658 1,076 800 Three Months Ended December 31, 2018 % of $ '000s Revenu 118,534 79% 1% 0% 80% (7,832) 20,927 800 289 14,184 -12% 15% 0% 0% 3% 81% 1% 1% 78,716 754 38 79,508 -5% 15% 1% 0% 10% (12,126) 12,110 38 439 461 122,220 1,633 800 0% 82% 124,653 hree Months Ende March 31, 2019 % of $'000s Revenu (9,036) 21,205 81% 1% 0% 81% 800 32 13,001 -12% 12% 0% 0% 0% 81% 1% 1% 0% 82% -6% 14% 1% 0% 9% Three Months Ended December 31, 2017 % of Revenues $'000s 85,485 823 50 86,358 (9,433) 12,898 50 827 4,342 hree Months Ende June 30, 2019 % of $'000s Revenu 132,113 1,488 800 134,401 81% 1% 0% 0% 82% (15,725) -10% 28,663 18% 800 0% 32 0% 13,770 8% 80% 1% 0% 81% -9% 12% 0% 1% 4% Three Months Ended March 31, 2018 % of $'000s Revenues 92,179 967 50 93,196 (11,324) 16,046 50 802 5,574 140,358 1,468 762 Three Months Ended September 30, 2019 % of $ '000s Revenu 142,588 (14,072) 23,791 762 30 10,511 80% 97,725 1% 1,163 0% 50 81% 98,938 -10% 14% 0% 1% 5% 81% 1% 0% 0% 82% Three Months Ended June 30,2018 % of $'000s Revenues -8% 14% 0% 0% 6% (14,052) 19,675 50 802 6,475 $ '000s 150,211 1,367 839 Three Months Ended December 31, 2019 % of Revenu 152,417 (8,158) 24,095 80% 1% 839 814 17,590 0% 81% -11% 16% 0% 1% 5% 81% 1% 0% 0% 82% -4% 13% 0% 0% 9% HubSpot#25GAAP to Non-GAAP Reconciliations Three Months Ended March 31, 2020 % of Revenue Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets Gain on termination of operating leases Loss on disposal of fixed assets 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 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 (expenses) Restructuring charges Non-GAAP loss from operations $ '000s 160,683 1,505 880 163,068 (14,102) 27,463 900 333 14,594 Three Months Ended December 31, 2021 % of $ '000s Revenue 297,670 2,563 228 300,461 (8,237) 45,914 318 170 38,165 81% 1% 0% 0% 0% 82% -7% 14% 0% 0% 0% 0% 7% 81% 1% 0% 81% -2% 12% 0% 0% 0% 10% Three Months Ended June 30, 2020 % of $ '000s Revenue 164,831 1,703 879 167,413 (13,625) 31,374 $'000s 19,166 Three Months Ended March 31, 2022 % of Revenue 899 518 322,663 2,658 321 325,642 (11,154) 45,704 410 34,960 82% 1% 0% 82% -3% 12% 0% 0% 0% 9% 81% 1% 0% 0% 0% 82% -7% 15% 0% 0% 0% 0% 9% Three Months Ended September 30, 2020 % of $ '000s Revenue 185,782 1,792 442 188,016 (15,461) 31,186 462 340 16,527 Three Months Ended June 30, 2022 % of $'000s Revenue 342,824 3,631 306 346,761 (44,767) 83,037 845 39,115 68% 1% 0% 69% -9% 17% 0% 0% 81% 1% 0% 0% 0% 82% 0% 8% -7% 14% 0% 0% 0% 0% 7% Three Months Ended December 31, 2020 % of Revenue $ '000s 204,771 1,945 139 206,855 (7,641) 31,466 159 640 24,624 Three Months Ended September 30, 2022 % of $'000s Revenue 361,831 3,479 292 365,602 (32,213) 72,213 738 40,738 82% 1% 0% 82% 81% 1% 0% 0% 0% 82% -3% 12% 0% 0% 0% 0% 10% -7% 16% 0% 0% 0% 9% Three Months Ended Three Months Ended March 31, 2021 June 30, 2021 % of % of Revenu Revenue $ '000s 226,631 2,007 239 228,877 (15,032) 32,423 345 1,195 18,931 389,393 3,673 283 393,349 Three Months Ended December 31, 2022 % of $ '000s Revenue (13,486) 76,768 729 81% 1% 0% 0% 0% 81% 64,011 83% 1% 0% 84% $ '000s -5% (16,602) 12% 43,433 0% 337 0% 372 0% 0% 7% -3% 16% 0% 0% 0% 14% 247,911 2,408 236 250,555 27,540 419,574 3,832 399 423,805 Three Months Ended March 31, 2023 % of $ '000s Revenue (44,767) 83,037 845 80% 1% 0% 0% 0% 81% 28,570 67,685 -5% 14% 0% 0% 0% 0% 9% 84% 1% 0% 84% -9% 17% 0% 0% 6% 13% Three Months Ended September 30, 2021 % of $'000s Revenue 269,589 2,408 234 (670) 1,015 272,576 (14,927) 44,987 326 350 (4,276) 6,468 32,928 $ '000s 441,852 4,975 405 447,232 Three Months Ended June 30, 2023 % of Revenue (118,499) 128,003 851 79% 1% 0% 0% 0% 80% 63,880 74,235 -4% 13% 0% 0% -1% 2% 10% 84% 1% 0% 85% -22% 24% 0% 0% 12% 14% HubSpot#26GAAP to Non-GAAP Reconciliations June 30, 2017 $ '000s 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 Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Payment of restructuring charges Free cash flow GAAP net cash and cash equivalents provided by (used in) operating activitie Purchases of property & equipment * All amounts are trailing twelve months March 31, 2017 $ '000s 35,279 (14,983) (5,925) 14,371 December 31, 2018 $'000s 84,851 (22,305) (11,168) 51,378 September 30, 2020 $'000s 75,878 (46,972) (19,979) 48,675 57,602 June 30, 2022 $'000s 260,984 (36,252) (36,649) 13,400 35,364 (15,592) (6,577) 13,195 201,483 March 31, 2019 $'000s 95,845 (20,331) (11,373) December 31, 2020 $ '000s 64,141 88,913 (37,318) (21,599) 49,048 79,044 September 30, 2022 $'000s September 30, 2017 '000s June 30, 2019 $'000s 37,893 (17,528) (6,882) 278,395 (42,711) (38,851) 1,971 198,804 13,483 96,041 (23,051) (10,690) 62,300 March 31, 2021 $ '000s 128,602 (30,143) (24,171) 58.853 133,141 December 31, 2022 $'000s 273,177 (37,426) (44,345) December 31, 2017 $'000s September 30, 2019 $'000s 191,406 49,614 (20,276) (7,071) 22,267 104,193 (26,814) (11,581) 65,798 June 30, 2021 $'000s 200,483 (28,123) (27,857) 13,401 157,904 March 31, 2023 $'000s 272,021 (30,796) (49,745) 22,513 213,993 March 31, 2018 $ '000s 57,244 (20,680) (8,077) 28,487 December 31, 2019 $'000s 118,972 (40,372) (13,474) 65,126 September 30, 2021 $ '000s 204,469 (26,920) (31,593) 24,830 170,786 June 30, 2023 $ '000s 307,643 (33,343) (56,009) 32,938 251,229 June 30,2018 $'000s 62,018 (20,514) (9,537) 31,967 March 31, 2020 $'000s 104,267 (47,249) (15,422) 41,596 December 31, 2021 $'000s 238,728 (28,726) (33,139) 26,428 203,291 September 30,2018 $ '000s 65,734 (21,875) (10,491) 33,368 June 30, 2020 $'000s 56,880 (48,257) (18,309) 48,675 38,989 March 31, 2022 $ '000s 258,254 (34,699) (35,520) 16,623 204,658 HubSpot