#1HubSpot Investor Presentation Q1 2022#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 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, macroeconomic instability, and the COVID-19 pandemic on our business, the broader economy, our workforce and operations, 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#3HubSpot Overview We provide a CRM platform with award-winning software, services, and support to transform the way organizations attract, engage, and delight customers. ロロ ~143,000 Total Customers 120+ Countries 13 Worldwide Office Locations HubSpot#4HubSpot 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 HubSpot#5HubSpot's Journey HubSpot#6HubSpot's mission is to help millions of organizations grow better. HubSpot#7What does it mean to grow better? Where others Where others Where others ignore, annoy, you attract. harass, you help. you enable. Where others may sacrifice the customer experience to grow, you find ways to grow better. HubSpot#8Customers Accelerate Growth But many companies view them as an afterthought. Marketing Sales Customers HubSpot#9We've transformed our business around a new model of growth Promoters Delight Strangers Attract Growth Engage Customers The Flywheel Prospects HubSpot#10Each 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. HubSpot#11To do so, we evolved from an app to a platform... C Marketing B2B eCommerce Operations Sales Marketing CRM ၁ Service Solution Partners CMS Developers App Partners ...because the customer experience should be seamless. HubSpot#12We dramatically expanded our offering, and in turn, our TAM, through product development HubSpot at IPO MARKETING MARKETING SALES HubSpot today SERVICE CMS OPERATIONS Employee Size 2000 200 20 2 2000 200 20 2 because every company should be able to grow better, and no company should have to outgrow it. HubSpot#13Our Product Pricing Marketing Hub Sales Hub Service CMS Hub Hub Operations Hub Enterprise $3,200 + $1,200 + $1,200 + $1,200 $2,000 Professional $890 + $500 + $500 + $400 $800 Starter $50 + $50 + $50 + $25 $50 Free Tools CRM Suite: Get access to every Starter, Professional, or Enterprise product, bundled together at a discounted rate. Note: All prices are monthly subscription prices. "+" indicates additional cost for Contacts for Marketing Hub customers and additional cost for Users for Sales and Service Hub customers. HubSpot#14All of that is just the beginning... Began as an App Became a Suite Becoming a Platform Marketing Sales C Marketing วง Service CMS Operations B2B eCommerce Operations Sales Marketing CRM Service Solution Partners CMS Developers App Partners We're focused on helping companies grow better in ever expanding ways. HubSpot#15The HubSpot Journey Marketing Hub Launch Performable Hubspot founded Acquisition $50M CRM Launch Sales Hub* Launch $100M Service Hub Launch $500M $250M Operations Hub Launch CMS Hub Launch Payments Launch 100K - customers PieSync Acquisition $1B ARR " " '06 '11 '12 '13 '14 '15 '16 '17 '18 '19 120 *Originally launched and branded as "Sidekick" '21 122 Revenue HubSpot#16HubSpot#17Financial Review Q1 2022 HubSpot#18$400 Revenue growth is strong $0.0 Q3'14* *IPO; CAGR: compound annual growth rate 23 41% CAGR の Revenue ($m) 2212 Q1'22 HubSpot#19Large international growth opportunity International Revenue Increasing % of Revenue $m $180 $120 $60 $0 Q3'14* *IPO; CAGR: compound annual growth rate 56% CAGR Q1'22 Q3 2014* 22% Q1 2022 46% HubSpot#20Strong Unit Economics Delivering Sustainable Profitability 70% -32% Q3'14* 82% Q1'22 Gross Margin (Non-GAAP) Operating Margin (Non-GAAP) *IPO; 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. 8.8% HubSpot#21$210 $105 $0 ($105) Q3'14* Generating Positive Free Cash Flow Trailing Twelve Months Free Cash Flow ($m) *IPO; 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. Q1'22 HubSpot#22Financial 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 *Theoretical operating margin % is non-GAAP and excludes expenses associated with stock based compensation, amortization of acquired intangible assets and acquisition related expenses. 3% -4% increase per year HubSpot#23Long Term Financial Target 2016 2017 2018 2019 2020 2021 Q1'22 Long Term Target Gross Margin 78% 81% 82% 82% 82% 81% 82% 81% - 83% R&D 14% 15% 18% 18% 19% 18% 19% 18% - 20% % of revenue S&M 55% 52% 46% 45% 45% 45% 46% 30%-35% % of revenue G&A 14% 12% 11% 11% 10% 9% 9% 8% -9% % of revenue Operating Margin -4% 2% 6% 8% 8% 9% 9% 20%-25% *Note: These estimates reflect our current operating plan as of 5/5/2022 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#24Appendix HubSpot#25GAAP to Non-GAAP Reconciliation Three Months Ended 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 28,619 33,738 2019 2020 2021 $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues 98,510 15% (3,127) 0% 130,685 (4,408) 15% 211,132 0% (6,297) (3,201) 0% (2,340) 0% (937) 0% 0% 395 0% 096 (600) 92,182 14% 123,937 14% 203,693 16% 31,448 (2,829) 盗咨咨咨姿 36,274 (2,536) 姿咨咨咨姿 47.725 (3,092) 275 (415) 虽苦苦苦酱酱 姿诺诺岩杰 March 31, 2022 44,908 09 12,717 $ '000s % of Revenues 59,384 15% (1,823) 0% (321) 0% 0% 09 57,240 14% 13,552 3% (835) 0% 0% 0% 3% Gross Margin Gross margin 544,902 81% 716,067 81% 1,041,801 80% 322,663 Stock-based compensation. 5,956 196 6,944 196 9,389 196 Amortization of acquired intangible assets. 3,201 0% 2,340 0% 662 096 2,658 321 Gain on termination of operating leases 0% 0% 0% Loss on disposal of fixed assets 0% 0% 0% 554,059 82% 725,351 82% 1,051,852 81% 325,642 Non-GAAP gross margin Operating Expenses Research and development 158,237 Stock-based compensation (33,748) Acquisition related expenses (357) Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP research and development 124,132 Sales and marketing Stock-based compensation 340,685 (36,599) Amortization of acquired intangible assets Acquisition related expenses Gain on termination of operating leases Loss on disposal of fixed assets 瓷瓷苦苦苦酱 卷带否咨 23% 205,589 23% (39,366) -496 (1,287) 301,970 (61,614) 164,936 19% 452,081 51% (50,552) (79) 8888 (1,152) 1,346 (2,036) 238,514 18% 649,681 -69 -070 (67,413) (389) 096 (367) 1.839 (2,781) Non-GAAP sales and marketing 304,086 45% 401,450 45% 580,570 General and administrative 92,971 14% 109,225 Stock-based compensation (21,451) -3% (24,626) 1296 -3% 144,949 (28,345) 1156 Acquisition related expenses (552) 0% (545) (568) Gain on termination of operating leases 0% 421 Loss on disposal of fixed assets 0% 096 (636) Non-GAAP general and administrative 70,968 11% 84,054 10% 115,821 酱添诺诺诺酱 憑添若若若若酱 当若若若添 92,736 23% (16,986) 0% 75,750 19% 197,134 50% (16,869) (89) 180,176 46% 43,947 11% (9,191) 34,756 **888*4 8 8 8 4 8 8 8 8 ***** Loss from Operations Loss from operations (46,991) Stock-based compensation 97,754 14% Amortization of acquired intangible assets 3,201 Acquisition related expenses 909 Gain on termination of operating leases Loss on disposal of fixed assets Non-GAAP loss from operations 54,873 ** -7% (50,828) -69 (54,799) -456 (11,154) -396 121,488 1496 166,761 13% 096 2,419 096 1,326 0% 45,704 410 1296 0% 1,8321 0% 2,087 0% 0% 0% 096 (4,276) 0% 0% 0% 6,468 0% 8% 74,911 896 117,567 9% 34,960 ** 096 0% 096 996 HubSpot#26GAAP to Non-GAAP Reconciliation Three Months Ended December 31, 2016 Three Months Ended March 31, 2017 Three Months Ended June 30, 2017 Three Months Ended September 30, 2017 Three Months Ended December 31, 2017 Three Months Ended March 31, 2018 Three Months Ended June 30,2018 % of % of % of $'000s Revenues $'000s Revenues $ '000s Revenues $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $ '000s % of Revenues Gross Margin Gross margin 59,557 78% 65,180 79% 70,502 79% 78,716 81% 85,485 80% 92,179 80% 97,725 80% Stock-based compensation 551 1% 564 1% 844 1% 754 1% 823 1% 967 1% 1,163 1% Amortization of acquired intangible assets 13 0% 9 0% 0% 38 0% 50 0% 50 0% 50 0% Acquisition related expenses 0% 0% 0% 0% 0% 0% 0% Non-GAAP gross margin 60,121 79% 65,753 80% 71,346 80% 79,508 81% 86,358 81% 93,196 81% 98,938 81% Loss from Operations Loss from operations (13,820) -18% (8,000) -10% (10,577) -12% (12,126) -12% (9,433) -9% (11,324) -10% (14,052) -11% Stock-based compensation 9,274 12% 9,303 11% 13,006 15% 12,110 12% 12,898 12% 16,046 14% 19,675 16% Amortization of acquired intangible assets 20 0% 16 0% 0% 38 0% 50 0% 50 0% 50 0% Acquisition related expenses 0% 0% 0% 439 0% 827 1% 802 1% 802 1% Non-GAAP loss from operations (4,526) -6% 1,319 2% 2,429 3% 461 0% 4,342 4% 5,574 5% 6,475 5% Three Months Ended September 30,2018 Three Months Ended December 31, 2018 $ '000s % of Revenues $ '000s % of Revenues $ '000s Three Months Ended March 31, 2019 % of Revenues Three Months Ended June 30, 2019 $ '000s % of Revenue $ '000s Three Months Ended September 30, 2019 % of Revenues $ '000s Three Months Ended December 31, 2019 % of Revenues Three Months Ended March 31, 2020 $ '000s % of Revenues Gross Margin Gross margin 106,061 80% 116,658 81% 122,220 Stock-based compensation 1,194 1% 1,076 1% 1,633 81% 1% 132,113 81% 140,358 81% 150,211 81% 1,488 1% 1,468 1% 1,367 1% 160,683 1,505 81% 1% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 0% 880 0% Acquisition related expenses 0% 0% 0% 0% 0% 0% 0% Non-GAAP gross margin 107,749 82% 118,534 82% 124,653 82% 134,401 82% 142,588 82% 152,417 82% 163,068 82% Loss from Operations Loss from operations (15,050) -11% (7,832) -5% (9,036) -6% (15,725) -10% (14,072) -8% (8,158) -4% (14,102) -7% Stock-based compensation 19,612 15% 20,927 15% 21,205 14% 28,663 18% 23,791 14% 24,095 13% 27,463 14% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 Acquisition related expenses 802 1% 289 0% 32 0% 32 0% 30 0% 814 Non-GAAP loss from operations 5,858 4% 14,184 10% 13,001 9% 13,770 8% 10,511 6% 17,590 ៖ ៖ ៖ 900 0% 333 0% 9% 14,594 7% HubSpot#27GAAP to Non-GAAP Non-GAAP Reconciliation 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 Three Months Ended June 30, 2020 Three Months Ended September 30, 2020 Three Months Ended December 31, 2020 Three Months Ended March 31, 2021 Three Months Ended June 30, 2021 Three Months Ended September 30, 2021 Three Months Ended December 31, 2021 $ '000s % of Revenues $'000s % of Revenues % of $ '000s Revenues $ '000s % of Revenues $'000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues 164,831 81% 1,703 1% 185,782 1,792 81% 204,771 81% 226,631 81% 247,911 1% 1,945 19 2,007 1% 2,408 80% 1% 269,589 79% 297,670 81% 2,408 1% 2,563 1% 879 0% 442 0% 139 0% 239 0% 236 0% 234 0% 228 0% - 0% - 0% 0% - 0% 0% (670) 0% 0% 0% 0% 0% 0% 0% 1,015 0% 0% 167,413 82% 188,016 82% 206,855 82% 228,877 81% 250,555 81% 272,576 80% 300,461 81% Loss from Operations Loss from operations Stock-based compensation (13,625) 31,374 -7% (15,461) -7% (7,641) -3% (15,032) -5% (16,602) -5% (14,927) -4% (8,237) -2% 15% 31,186 14% 31,466 12% 32,423 12% 43,433 14% 44,987 13% 45,914 12% Amortization of acquired intangible assets 899 0% 462 0% 159 0% 345 0% 337 0% 326 0% 318 0% Acquisition related expenses 518 0% 340 0% 640 0% 1,195 0% 372 0% 350 0% 170 0% Gain on termination of operating leases 0% 0% 0% 0% 0% (4,276) -1% 0% Loss on disposal of fixed assets Non-GAAP loss from operations 0% 0% 0% 0% 0% 6,468 2% 0% 19,166 9% 16,527 7% 24,624 10% 18,931 7% 27,540 9% 32,928 10% 38,165 10% Gross Margin Gross margin Stock-based compensation Amortization of acquired intangible assets Gain on termination of operating leases Loss on disposal of fixed assets Three Months Ended March 31, 2022 % of $ '000s Revenues 322,663 82% 2,658 1% 321 0% 0% 0% 325,642 82% Non-GAAP gross margin Loss from Operations Loss from operations (11,154) -3% Stock-based compensation 45,704 12% Amortization of acquired intangible assets 410 0% Acquisition related expenses 0% Gain on termination of operating leases 0% Loss on disposal of fixed assets Non-GAAP loss from operations 0% 34,960 9% HubSpot#28GAAP to Non-GAAP Reconciliation 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 Trailing Twelve Months Ended December 31, 2016 $ '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 Ended September 30,2018 $ '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 Trailing Twelve Months Ended March 31, 2017 Trailing Twelve Months Ended June 30, 2017 Trailing Twelve Months Ended September 30, 2017 Trailing Twelve Months Ended December 31, 2017 $'000s Trailing Twelve Months Ended March 31, 2018 $ '000s Trailing Twelve Months Ended June 30,2018 $'000s $ '000s 19,366 35,279 35,364 (15,789) (5,749) (14,983) (5,925) (15,592) (6,577) (2,172) 14,371 13,195 $ '000s 37,893 (17,528) (6,882) 13,483 49,614 (20,276) (7,071) 22,267 $ '000s 57,244 62,018 (20,680) (20,514) (8,077) (9,537) 28,487 31,967 Trailing Twelve Months Trailing Twelve Months Ended Trailing Twelve Months Ended Trailing Twelve Months Ended December 31, 2018 March 31, 2019 June 30, 2019 Trailing Twelve Months Ended September 30, 2019 Trailing Twelve Months Ended December 31, 2019 $'000s $ '000s $ '000s $ '000s $ '000s Trailing Twelve Months Ended March 31, 2020 $ '000s 65,734 (21,875) (10,491) 33,368 84,851 95,845 96,041 104,193 118,972 (22,305) (11,168) (20,331) (11,373) (23,051) (26,814) (40,372) (10,690) (11,581) (13,474) 51,378 64,141 62,300 65,798 65,126 104,267 (47,249) (15,422) 41,596 Trailing Twelve Months Ended Trailing Twelve Months Ended Trailing Twelve Months Ended Trailing Twelve Months March 31, 2020 June 30, 2020 September 30, 2020 $ '000s $'000s $'000s Ended December 31, 2020 $ '000s Trailing Twelve Months Ended March 31, 2021 Trailing Twelve Months Ended Juune 30, 2021 Trailing Twelve Months $'000s $ '000s Ended September 30, 2021 $'000s Trailing Twelve Months Ended December 31, 2021 $ '000s 104,267 56,880 75,878 88,913 128,602 200,483 204,469 238,728 (47,249) (48,257) (46,972) (37,318) (30,143) (28,123) (26,920) (28,726) (15,422) (18,309) (19,979) (21,599) (24,171) (27,857) (31,593) (33,139) 48,675 48.675 49,048 58,853 13,401 24,830 41,596 38,989 57,602 79,044 133,141 157,904 170,786 26,428 203,291 Trailing Twelve Months Ended March 31, 2022 $ '000s 258,254 (29,805) (35,520) 16,623 209,552 HubSpot