#1HubSpot HubSpot Overview Q4 2023#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 first fiscal quarter of and full year 2024 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, including artificial intelligence and machine learning technologies; our ability to realize the anticipated benefits of the Clearbit acquisition; 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 $2.2b $292m² 205k3 TTM revenue TTM FCF customers 7.7k employees 135+4 25%¹ 13% YoY growth margin 23% YoY growth countries 1 As-reported YoY growth based on trailing twelve month period as of Q4 2023, compared to prior trailing twelve month period as of Q4 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. ³ Excludes Clearbit customers. 4 Customers located in 135+ countries globally. HubSpot 4#5ㄱ L L Our foundational choices • Focus on SMB • Move from app to suite to platform • Build products organically Deliver value before you monetize 5#6Sales 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 6#7HubSpot 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 7#8To help our customers make connections, we've transformed from a single app to a platform + AI-Powered Marketing Hub™ Sales Hub™ Service Hub™ CMS Hub Lead Generation Marketing Automation Prospecting Help Desk Operations Hub™ Content Creation Advanced Reporting Deal Management Self Service Content Management Process Automation Commerce Hub Payments & Subscriptions Billing & Invoices Smart CRM Unified Customer Data Customer Intelligence Customization & Extensibility Marketplace Find integrations, templates & services Academy Learn new skills, gain credentials Network Join our community, grow your craft HubSpot 8#9What matters to our customers? Acquire customers 66 Quality rather than quantity. Make Improve data-driven customer Increase efficiency Thrive with AI decisions experience 66 66 Being smarter with our data. 66 Winning where winning matters. Don't scale chaos. 66 We want to show up like people, not bots. Sr. CRM Manager, Cambridge University Press (EE: 2000+) Marketing Manager, Safe Contractors (EE: 101-500) COO, Owl Cyber Defence (EE: 101-500) Director Client Success, Sandler EAM Consulting (EE: 1-10) CIO, IDEO (EE: 101-500) HubSpot 9#10Early stages of large TAM opportunity $51b¹ <10% Penetration across all product and customer segments 2023 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 Hub. Source: IDC and HubSpot estimates $77b 1 2028#11Our focus is on driving broad and efficient distribution Who is buying Large Medium Digital, sales and partner-driven Digital and sales-driven Small Digital-driven How we are serving 11#12Building a company future generations will be proud of #1 Best Sales and Marketing Software by G2 #3 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 1 $100m Service Hub Launch 899 200k Customers Clearbit Acquisition I Commerce Hub Launch 回 CMS Hub Launch PieSync Acquisition Operations Hub Launch 899 100k Customers $1b ARR 2 $500m $250m '06 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 HubSpot founded Sales Hub originally launched and branded as "Sidekick". 2 ARR: Annual Recurring Revenue. Revenue 22 122 $2b ARR 23 123 HubSpot 13#14HubSpot is positioned for long-term, durable growth Mission Aspiration Product Strategy Go-to-Market Strategy Company Strategy Help millions of organizations grow better. Become the #1 Customer Platform for scaling companies. Power our Engagement Hubs and Smart CRM with AI. Scale breadth of distribution with multiple GTM motions. Build an equitable, sustainable organization. 14#15Financial Overview Q4 2023#16Strong Revenue Growth $82m Q1'17 Quarterly Revenue $582m Q4'23 Q4'23 revenue $582m revenue 21%¹ growth yoy 1 Excludes impact of foreign currency. Q4'23 revenue growth was 24% as reported and 21% 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 Customer Growth 31k Q1'17 1 Excludes Clearbit customers. Total Customers 205k¹ Q4'23 Q4'23 customers customer growth yoy 205k¹ 23% HubSpot 17#18Growing Profitability with Scale $1m Q1'17 Quarterly Operating Profit 1 $98m Q4'23 Q4'23 operating profit¹ $98m operating profit¹ margin 17% 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. HubSpot 18#19Philosophy on balancing growth and profitability $ Drive durable revenue growth at scale Generate operating leverage as we scale toward long-term margin targets 19#20Strong Track Record of Profitable Growth $376m 2017 Annual Revenue 34% CAGR 1 $2,170m $9m 2023 2017 CAGR: compound annual growth rate. Based on as-reported revenue from 2017 to 2023. See definition and reconciliation of non-GAAP operating profit in appendix. Annual Operating Profit 2 $330m 20% Operating Profit Margin (%, as reported) 2 0% 2023 HubSpot20#21Increasing Free Cash Flow Generation Trailing Twelve Month Free Cash Flow 1 $14m ااااس 16% $292m 0% Q1'17 Q4'23 Free Cash Flow Margin ¹ (Trailing Twelve Month, %) Free Cash Flow 1 (Trailing Twelve Month, $m) Q4'23 free cash flow¹ $83m cash position $1.7b 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 21#22Long term financial targets 2026 2022 Q1'23 Q2'23 Q3'23 Q4'23 2023 Target Model¹ Long Term Target Model¹ Gross Margin 83% 84% 85% 85% 86% 85% 84% 81% - 83% R&D 19% 19% 20% 19% 19% 19% 20% 20% % of revenue S&M 45% 44% 43% 42% 43% 43% 36% -38% 30% - 35% % of revenue G&A 9% 8% 8% 8% 8% 8% 8% 8% % of revenue Operating Margin 10% 13% 14% 16% 17% 15% 18% - 20% 20%-25% 1 These estimates reflect our current operating plan as of February 14, 2024 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 intangibles and acquisition related expenses. Percentages are based on actual values. Totals may not sum due to rounding. Please refer to appendix for a reconciliation of GAAP to non-GAAP figures. HubSpot 2#23GAAP to Non-GAAP Reconciliations#24GAAP to Non-GAAP Reconciliations 2020 2022 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 33,738 Gross Margin Gross margin 716,067 1,041,801 80% Stock-based compensation 6,944 9,389 1% Amortization of acquired intangible assets 2,340 662 0% Gain on termination of operating leases (670) 0% Loss on disposal of fixed assets 1,015 0% Non-GAAP gross margin 725,351 1,052,197 81% Operating Expenses Research and development 205,589 301,970 23% Stock-based compensation (39,366) (61,614) -5% Acquisition/disposition related income (expenses) (1,287) (1,152) 0% Gain on termination of operating leases 1,346 Loss on disposal of fixed assets (2,036) Non-GAAP research and development 164,936 238,514 18% Sales and marketing 452,081 649,681 50% Stock-based compensation (50,552) (67,413) -5% Amortization of acquired intangible assets (79) (389) 0% Acquisition related expenses (367) 0% Gain on termination of operating leases 1,839 Loss on disposal of fixed assets (2,781) Non-GAAP sales and marketing 401,450 580,570 45% General and administrative 109,225 144,949 11% Stock-based compensation (24,626) (28,345) -2% Acquisition related expenses (545) (568) Amortization of acquired intangible assets Gain on termination of operating leases 421 Loss on disposal of fixed assets (636) Non-GAAP general and administrative 84,054 115,821 9% Restructuring charges 0% Loss from Operations Loss from operations (50,828) (54,799) -4% 2021 2023 $ '000s % of Revenues $ *000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues 130,685 (4,408) (2,340) 123,937 36,274 (2,536) *********************** 211,132 (6,297) 16% 257,513 15% 290,802 13% 0% (9,076) -1% (12,652) -1% (937) 0% (1,203) 0% (2,123) 0% 395 0% 0% (600) 0% 0% 203,693 16% 247,234 14% 276,027 13% 47,725 (3,092) 275 (415) 44,908 ****** 4% 56,746 3% 54,687 3% 0% (4,393) 0% (4,958) 0% 0% 0% 0% 0% 0% 3% 52,353 3% 49,729 2% 1,416,710 82% 1,824,741 84% 13,469 1% 17,610 1% 1,203 0% 2,123 0% 0% 0% 0% 0% 1,431,382 83% 1,844,474 85% 442,022 26% 617,745 28% (107,517) -6% (198,953) -9% 300 0% (255) 0% 0% 0% 0% 0% 334,805 19% 418,537 19% 886,069 51% 1,068,560 49% (107,640) -6% (140,362) -6% (1,426) 0% (3,153) 0% 0% 0% 0% 0% 0% 0% 777,003 45% 925,045 43% 197,720 11% 249,649 12% (47,223) -3% (75,346) -3% 0% (3,651) 0% (35) 0% 0% 0% 0% 0% 150,497 9% 170,617 8% 0% 96,843 4% (109,101) -6% (208,056) -10% Stock-based compensation 121,488 166,761 13% 275,849 16% 432,271 20% Amortization of acquired intangible assets 2,419 1,326 0% 2,629 0% 5,311 0% Acquisition related expenses 1,832 2,087 0% (305) 0% 3,906 0% Gain on termination of operating leases (4,276) 0% 0% 0% Loss on disposal of fixed assets 6,468 0% 0% 0% Restructuring charges Non-GAAP loss from operations 0% 0% 96,843 4% 24 74,911 117,567 9% 169,072 10% 330,275 15%#25GAAP to Non-GAAP Reconciliations Three Months Ended March 31, 2017 $'000s % of Revenu Three Months Ended June 30, 2017 % of $'000s Revenues $'000s Revenues Three Months Ended September 30, 2017 % of Three Months Ended December 31, 2017 $ '000s % of Revenues Three Months Ended March 31, 2018 % of $'000s Revenues Three Months Ended June 30,2018 % of $'000s Revenues Gross Margin Gross margin 65,180 79% 70,502 79% 78,716 81% Stock-based compensation 564 1% 844 1% 754 1% Amortization of acquired intangible assets 9 Non-GAAP gross margin 65,753 0% 80% 0% 71,346 80% 38 79,508 0% 81% 85,485 823 50 86,358 80% 1% 92,179 80% 97,725 80% 967 1% 1,163 1% 0% 50 0% 50 0% 81% 93,196 81% 98,938 81% Loss from Operations Loss from operations Stock-based compensation Amortization of acquired intangible assets Acquisition/disposition related income (expense) Non-GAAP loss from operations (8,000) -10% 9,303 11% (10,577) 13,006 -12% (12,126) -12% (9,433) -9% (11,324) -10% (14,052) -11% 15% 12,110 12% 12,898 12% 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 Revenu $ '000s Three Months Ended December 31, 2018 % of Revenu hree Months Ende March 31, 2019 % of $'000s Revenu hree Months Ende June 30, 2019 % of $'000s Revenu $ '000s Three Months Ended September 30, 2019 % of Revenu Three Months Ended December 31, 2019 % of $ '000s Revenu Gross Margin Gross margin 106,061 80% 116,658 81% 122,220 81% 132,113 81% 140,358 81% 150,211 81% Stock-based compensation 1,194 1% 1,076 1% 1,633 1% 1,488 1% 1,468 1% 1,367 1% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 0% Acquisition related expenses 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% 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 (expenses) 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% 25#26GAAP to Non-GAAP Reconciliations 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 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 Three Months Ended March 31, 2020 Three Months Ended June 30, 2020 Three Months Ended September 30, 2020 $ '000s % of Revenue $ '000s % of Revenue % of $ '000s Revenue $ '000s % of Revenue $'000s % of Revenu $ '000s % of Revenue $ '000s % of Revenue $'000s % of Revenues 160,683 81% 164,831 81% 185,782 81% 204,771 81% 226,631 81% 247,911 80% 269,589 79% 297,670 81% 1,505 1% 1,703 1% 1,792 1% 1,945 1% 2,007 1% 2,408 1% 2,408 1% 2,563 1% 880 0% 879 0% 442 0% 139 0% 239 0% 236 0% 234 0% 228 0% 0% 0% 0% 0% 0% 0% (670) 0% 0% 0% 0% 0% 0% 0% 0% 1,015 0% 0% 163,068 82% 167,413 82% 188,016 82% 206,855 82% 228,877 81% 250,555 81% 272,576 80% 300,461 81% (14,102) -7% (13,625) -7% (15,461) -7% (7,641) -3% (15,032) -5% (16,602) -5% (14,927) -4% (8,237) -2% 27,463 14% 31,374 15% 31,186 14% 31,466 12% 32,423 12% 43,433 14% 44,987 13% 45,914 12% Amortization of acquired intangible assets 900 0% 899 0% 462 0% 159 0% 345 0% 337 0% 326 0% 318 0% Acquisition/disposition related income (expenses) 333 0% 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% 0% (4,276) -1% Loss on disposal of fixed assets 0% 0% 0% 0% 0% 0% 6,468 0% 2% Non-GAAP loss from operations 14,594 7% 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 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 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 Three Months Ended December 31, 2022 % of Revenues $'000s Three Months Ended March 31, 2023 % of Revenues Three Months Ended June 30, 2023 $'000s % of Revenues Three Months Ended September 30, 2023 % of Three Months Ended December 31, 2023 $ '000s Revenues $ '000s % of Revenues 322,663 82% 342,824 65% 361,831 65% 389,393 83% 419,574 84% 441,852 84% 470,031 84% 493,279 85% 2,658 1% 3,631 1% 3,479 1% 3,673 1% 3,832 1% 4,975 1% 4,358 1% 4,752 1% 321 0% 306 0% 292 0% 283 0% 399 0% 405 0% 408 0% 911 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 325,642 82% 346,761 66% 365,602 66% 393,349 84% 423,805 84% 447,232 85% 474,797 85% 498,942 86% (11,154) -3% (118,499) -22% (20,442) -4% (13,486) -3% (44,767) -9% (118,499) -22% (20,442) -4% (24,346) -4% 45,704 12% 128,003 24% 107,506 19% 76,768 16% 83,037 17% 128,003 24% 107,506 19% 113,726 20% 410 0% 851 0% 2,311 0% 729 0% 845 0% 851 0% 2,311 0% 1,304 0% 0% 0% 0% 0% 0% 0% - 0% 3,906 1% 0% 0% 0% 0% 28,570 6% 63,880 12% 846 0% 3,547 1% 34,960 9% 10,355 2% 89.375 16% 64,011 14% 67,685 13% 74,235 14% 90,221 16% 101,684 17% 26#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 March 31, 2017 $'000s June 30, 2017 $ '000s September 30, 2017 '000s December 31, 2017 $ '000s March 31, 2018 $ '000s June 30,2018 $ '000s September 30,2018 $ '000s 35,279 35,364 37,893 49,614 57,244 62,018 (14,983) (5,925) 14.371 (15,592) (6,577) (17,528) (6,882) (20,276) (7,071) (20,680) 13,195 13,483 22,267 (8,077) 28,487 (20,514) (9,537) 31,967 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 December 31, 2020 March 31, 2021 $ '000s $ '000s $ '000s June 30, 2021 $ '000s September 30, 2021 December 31, 2021 March 31, 2022 $ '000s $ '000s $ '000s 75,878 88,913 128,602 200,483 (46,972) (37,318) (30,143) (28,123) 204,469 (26,920) 238,728 258,254 (28,726) (34,699) (19,979) (21,599) (24,171) (27,857) 48,675 49,048 58,853 13,401 57,602 79,044 133,141 157,904 (31,593) 24,830 170,786 (33,139) (35,520) 26,428 16,623 203,291 204,658 June 30, 2022 $ '000s September 30, 2022 $ '000s December 31, 2022 '000s March 31, 2023 $ '000s June 30, 2023 $'000s September 30, 2023 December 31, 2023 $ '000s $ '000s 260,984 278,395 273,177 272,021 307,643 336.625 350,972 (36,252) (42,711) (37,426) (30,796) (33,343) (31,073) (33,718) (36,649) (38,851) (44,345) (49,745) (56,009) (62,283) (66,372) 13,400 1,971 22,513 32,938 37.163 41.572 201,483 198,804 191.406 213,993 251,229 280,432 292,454 GAAP net cash and cash equivalents provided by (used in) operating activitie Purchases of property & equipment Capitalization of software development costs Repayment of 2022 Convertible Notes attributable to the debt discount Payment of restructuring charges Free cash flow 27