#1HubSpot HubSpot Overview Q3 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, 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 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 Q3 2022 $1.6B $197M ~160K TTM Revenue TTM FCF customers 7.4K+ employees 38% 12% 120+ 13 YoY growth margin countries office locations TTM = Trailing Twelve Months. 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 $45B¹ 2022 10% CAGR $72B¹ 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. 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 Marketing Hub Launch Performable Hubspot founded Acquisition 00 '06 $50M CRM Launch Sales Hub* Launch N $100M Service Hub Launch $250M '11 '12 '13 '14 '15 '16 * Originally launched and branded as "Sidekick" 75 '17 $500M Operations Hub Launch CMS Hub Launch Payments Launch 100K customers. PieSync Acquisition $1B ARR '18 '19 19 20 '20 21 '21 Revenue '22 HubSpot 13#14Winning combination for growth Large, expanding TAM Strong culture & team Pace of innovation + Breadth of distribution HubSpot 14#15Financial Overview Q3 2022#16Strong Revenue Growth $500 Quarterly Revenue $444 ($m) $0 $82 Q1'17 Q3'22 Q3'22 revenue $444m revenue 31%¹ growth yoy 1. Q3'22 revenue growth was 31% as reported and 38% 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 $2,000 $376 60 $0 2017 Annual Revenue $1,706 ($m) 2022e 35% CAGR 2017 →2022e 2022e: based on midpoint of 2022 full year revenue guidance of $1.706 billion. CAGR: compound annual growth rate; based on as-reported revenue from 2017 to 2022e. HubSpot 17#18Growing Profitability with Scale $50 $0 $1 Q1'17 Quarterly Non-GAAP Operating Profit ($m) $41 Q3'22 Q3'22 operating profit $41m operating profit 9.2% 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 $9 $0 2017 ($m) Operating Profit Margin (%, as reported) Operating Profit Margin (%, constant currency)¹ $153 11% 0% 2022e $195 million FCF, 2022e $1.4+ billion in cash, Q3'22 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. 2022e: based on midpoint of 2022 full year operating profit and free cash flow guidance of $153 million and $195 million, respectively. See definitions and reconciliations of non-GAAP operating income and free cash flow in appendix. HubSpot 19#20Increasing Free Cash Flow Generation $250 $14 $0 Q1'17 Trailing Twelve Month Free Cash Flow ($m) $197 16% 0% Q3'22 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 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 Long Term Target Gross Margin 81% 82% 82% 82% 81% 82% 82% 82% 81% -83% R&D % of revenue 15% 18% 18% 19% 18% 19% 21% 19% 18% - 20% S&M % of revenue 52% 46% 45% 45% 45% 46% 45% 45% 30% - 35% G&A % of revenue 12% 11% 11% 10% 9% 9% 9% 9% 8% -9% Operating Margin 2% 6% 8% 8% 9% 9% 7% 9% 20%-25% These estimates reflect our current operating plan as of 11/2/2022 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 Three Months Ended Three Months Ended 2018 2019 2020 2021 March 31, 2022 June 30, 2022 Three Months Ended September 30, $ '000s % of Revenues % of $ '000s Revenues $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues $ 000s % of Revenues $ '000s % of Revenues Cost of Revenue Subscription Stock-based compensation 69,718 14% 98,510 130,685 15% (1,476) 0% (3,127) Amortization of acquired intangibles (1,394) 0% (3,201) Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP subscription 66,848 13% 92,182 Professional services and other 30,639 6% 31,448 Stock-based compensation (2,924) -1% (2,829) Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP professional services and other 27,715 5% 28,619 Gross Margin Gross margin 412,623 80% 544,902 Stock-based compensation 4,400 1% 5,956 Amortization of acquired intangible assets 1,394 0% 3,201 Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP gross margin Operating Expenses 418,417 82% 554,059 ************** (4,408) 0% 211,132 (6,297) 16% 59,384 15% 0% (1,823) 0% 64,431 (2,383) 15% 67,648 15% -1% (2,311) -1% (2,340) 0% (937) 0% (321) 0% (306) 0% (292) 0% 0% 395 0% 0% 0% 0% 0% (600) 0% 0% 0% 0% 123,937 14% 203,693 16% 57,240 14% 61,742 15% 65,045 15% 36,274 4% 47,725 4% 13,552 3% 14,500 3% 14.479 3% (2,536) 0% (3,092) 0% (835) 0% (1,248) 0% (1,168) 0% 0% 275 0% 0% 0% 0% 0% (415) 0% 0% 0% 0% 33,738 4% 44,908 3% 12,717 3% 13,252 3% 13,311 3% 716,067 81% 1,041,801 80% 322,663 82% 342,824 81% 361,831 82% 6,944 1% 9,389 1% 2,658 1% 3,631 1% 3,479 1% 2,340 0% 662 0% 321 0% 306 0% 292 0% 0% (670) 0% 0% 0% 0% 0% 1.015 0% 0% 0% 0% 725,351 82% 1,052,197 81% 325.642 82% 346,761 82% 365,602 82% Research and development 117,603 23% 158,237 205,589 23% 301,970 23% 92,736 23% 118,914 28% 114,038 26% Stock-based compensation (23,328) -5% (33,748) (39,366) -4% (61,614) -5% (16,986) -4% (31,698) -8% (28,585) -6% Acquisition/disposition related income (2,696) -1% (357) (1,287) 0% (1,152) 0% 0% 300 0% 0% Gain on termination of operating leases 0% 0% 1,346 0% 0% 0% 0% Loss on disposal of fixed assets 0% 0% (2,036) 0% 0% 0% 0% Non-GAAP research and development 91,579 18% 124,132 164,936 19% 238,514 18% 75,750 19% 87,516 21% 85,453 19% Sales and marketing 267,444 52% 340,685 452,081 51% 649,681 50% 197,134 50% 224,262 53% 229,541 52% Stock-based compensation (31,099) -6% (36,599) (50,552) -6% (67,413) -5% (16,869) -4% (32,183) -8% (28,060) -6% Amortization of acquired intangible assets 0% (79) 0% (389) 0% (89) 0% (446) 0% (446) 0% Acquisition related expenses 0% 0% (367) 0% 0% 0% 0% Gain on termination of operating leases 0% 0% 1,839 0% 0% 0% 0% Loss on disposal of fixed assets 0% 0% (2,781) 0% 0% 0% 0% Non-GAAP sales and marketing 236,345 46% 304,086 45% 401,450 45% 580,570 45% 180,176 46% 191,633 45% 201,035 45% General and administrative 75,834 15% 92,971 109,225 12% 144,949 11% 43,947 11% 51,898 12% 50,465 11% Stock-based compensation (17,434) -3% (21,451) (24,626) -3% (28,345) -2% (9,191) -2% (13,653) -3% (12,089) -3% Acquisition related expenses 0% (552) (545) 0% (568) 0% 0% (19) 0% 0% Gain on termination of operating leases 0% 0% 0% 421 0% 0% 0% 0% Loss on disposal of fixed assets 0% 0% 0% (636) 0% 0% 0% 0% Non-GAAP general and administrative 58,400 11% 70,968 84,054 10% 115,821 9% 34,756 9% 38,226 9% 38,376 9% 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 Three Months Ended December 31, 2021 Three Months Ended March 31, 2022 Three Months Ended June 30, 2022 Three Months Ended September 30, 2022 $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $ '000s % of Revenues Gross Margin Gross margin 269,589 79% 297,670 81% 322,663 82% 342,824 81% 361,831 82% Stock-based compensation 2,408 1% 2,563 1% 2,658 1% 3,631 1% 3,479 1% Amortization of acquired intangible assets 234 0% 228 0% 321 0% 306 0% 292 0% Acquisition related expenses 0% 0% 0% 0% 0% Gain on termination of operating leases (670) 0% 0% 0% 0% 0% Loss on disposal of fixed assets 1,015 0% 0% 0% 0% 0% 272,576 80% 300,461 81% 325.642 82% 346,761 82% 365,602 82% Non-GAAP gross margin Loss from Operations Loss from operations Stock-based compensation (14,927) -4% (8,237) -2% (11,154) -3% (52,250) -12% (32,213) -7% 44,987 13% 45,914 12% 45,704 12% 81,165 19% 72,213 16% Amortization of acquired intangible assets 326 0% 318 0% 410 0% 752 0% 738 0% Acquisition/disposition related income (expenses) 350 0% 170 0% 0% (281) 0% 0% Gain on termination of operating leases (4,276) -1% 0% 0% 0% 0% Loss on disposal of fixed assets 6,468 2% 0% 0% 0% 0% Non-GAAP loss from operations 32,928 10% 38,165 10% 34,960 9% 29,386 7% 40,738 9% 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 $'000s June 30, 2019 $ '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 Juune 30, 2021 $ '000s September 30, 2021 $'000s December 31, 2021 March 31, 2022 $ '000s $ '000s 75,878 88,913 128,602 200,483 204,469 238,728 258,254 (46,972) (37,318) (30,143) (28,123) (26,920) (28,726) (29,805) (19,979) (21,599) (24,171) (27,857) (31,593) (33,139) (35,520) 48,675 49,048 58,853 13,401 24,830 26,428 16,623 57,602 79,044 133.141 157,904 170,786 203,291 209,552 June 30, 2022 September 30, 2022 $ '000s $'000s 260,984 278,395 (31,358) (37,817) (36,649) (38,851) 13,400 1,971 206,377 203,698 HubSpot