#1HubSpot HubSpot Overview Q1 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 second fiscal quarter of and full year 2023 and our long-term financial framework; and 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. 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 recent reduction in force, including risks that the related costs and charges may be greater than anticipated and that the restructuring efforts may not generate their intended benefits, may adversely affect our internal programs and the Company's ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; 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, 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 customers 120+ 7K+ employees 13 office locations $1.84B $214M² ~177K TTM revenue TTM FCF 30%¹ 1 12% YoY growth margin countries 1 YoY growth based on trailing twelve month period as of Q1 2023, compared to prior trailing twelve month period as of Q1 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. 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 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 1 $100m Service Hub Launch CMS Hub Launch Operations Hub Launch 100K Customers *Payments Launch PieSync Acquisition $1b ARR 2 $500m $250m '06 '11 '12 '13 '14 '15 '16 '17 '18 '19 HubSpot Founded Sales Hub originally launched and branded as "Sidekick". 2 ARR: Annual Recurring Revenue. 20 '20 '21 Revenue $2b ARR 2 122 123 23 HubSpot 13#14Winning combination for growth Large, expanding TAM Strong culture & team Pace of innovation + Breadth of distribution HubSpot 14#15Financial Overview Q1 2023#16Strong Revenue Growth $82 Q1'17 $502 Quarterly Revenue ($m) Q1'23 Q1'23 revenue $502m revenue 30%¹ growth yoy 1 Excludes impact of foreign currency. Q1'23 revenue growth was 27% as reported and 30% 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#17Growing Profitability with Scale $1 Q1'17 Quarterly Non-GAAP Operating Profit 1 ($m) $68 Q1'23 Q1'23 operating profit¹ $68m operating profit¹ 13.5% 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. HubSpot 17#18Strong Track Record of Profitable Growth $376 2017 Annual Revenue ($m) $1,731 ($m) Annual Non-GAAP Operating Profit 2 36% CAGR 1 12% $169 $9 2022 2017 0% 2022 Operating Profit Margin (%, as reported) 2 Operating Profit Margin (%, constant currency) 3 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. HubSpot 18#19$250 Increasing Free Cash Flow Generation Trailing Twelve Month Free Cash Flow 1 ($m) 16% $214 $14 $0 0% Q1'17 Q1'23 Free Cash Flow Margin 1 (Trailing Twelve Month, %) Free Cash Flow 1 (Trailing Twelve Month, $m) Q1'23 free cash flow¹ $85m cash position $1.6b 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 High Growth Growth Moderate Growth Revenue Growth > 30% ≈ 30% < 30% Operating Margin % 1 1% - 2% increase per year 2% -3% increase per year Operating Cash Flow Revenue Growth 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. HubSpot 20#21Long Term Financial Targets 2020 2021 2022 Q1 2023 Long Term Target 1 Gross Margin 82% 81% 83% 84% 81% - 83% R&D 19% 18% 19% 19% 18% - 20% % of revenue S&M % of revenue 45% 45% 45% 44% 30% - 35% G&A % of revenue 10% 9% 9% 8% 8% -9% Operating Margin 8% 9% 10% 13% 20%-25% 1 These estimates reflect our current operating plan as of 5/3/2023 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 2020 $ '000s Revenues Cost of Revenue Subscription Stock-based compensation 130,685 15% (4,408) 0% Amortization of acquired intangibles (2,340) 0% % of $ '000s 2021 211,132 (6,297) (937) Revenues 2022 Three Months Ended March 31, 2023 % of $ '000s % of Revenues % of $ '000s Revenues Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP subscription Professional services and other 123.937 14% 36,274 4% Stock-based compensation (2,536) 0% Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP professional services and other 33,738 4% Gross Margin Gross margin 716,067 81% Stock-based compensation 6,944 1% Amortization of acquired intangible assets 2,340 0% Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP gross margin Operating Expenses 725,351 82% Research and development 205,589 23% Stock-based compensation (39,366) -4% Acquisition/disposition related income (1,287) 0% Gain on termination operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP research and development 164,936 19% Sales and marketing 452,081 51% Stock-based compensation (50,552) -6% Amortization of acquired intangible assets (79) 0% Acquisition related expenses 0% Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP sales and marketing 401,450 45% General and administrative 109,225 12% Stock-based compensation (24,626) -3% 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) Acquisition related expenses (545) 0% Gain on termination of operating leases 0% Loss on disposal of fixed assets 0% Non-GAAP general and administrative 84,054 Restructuring charges 10% 0% 115,821 Loss from Operations Loss from operations (50,828) -6% (54,799) (109,101) -6% (44,767) -9% Stock-based compensation 121,488 14% 166,761 275,849 16% 83,037 17% Amortization of acquired intangible assets 2,419 0% 1,326 2,629 0% 845 0% Acquisition related expenses 1,832 0% 2,087 (305) 0% 0% Gain on termination of operating leases 0% (4,276) 0% 0% Loss on disposal of fixed assets 0% 6.468 0% 0% Restructuring charges Non-GAAP loss from operations 0% 0% 28,570 6% 74,911 8% 117.567 169,072 10% 67.685 13% AAAAAA|| 257,513 15% 68,339 14% (9,076) -1% (2,745) -1% (1,203) 0% (399) 0% 0% 0% (600) 0% 0% 203,693 247,234 14% 65,195 13% 47,725 56,746 3% 13,707 3% (3,092) (4,393) 0% (1,087) 0% 0% 0% (415) 0% 0% 44,908 1,041,801 9,389 (670) 1,015 1,052,197 81% ************* 52,353 3% 12,620 3% 1,416,710 82% 419,574 84% 13,469 1% 3,832 1% 1,203 0% 399 0% 0% 0% 0% 0% 1,431,382 83% 423,805 84% 442,022 26% 127,683 25% (107,517) -6% (33,324) -7% 300 0% 0% 0% 0% 0% 0% 334.805 19% 94,359 19% 886,069 51% 250,683 50% (107,640) -6% (30,169) -6% (1,426) 0% (446) 0% 0% 0% 0% 0% 0% 0% 777,003 45% 220,068 44% 197,720 11% 57,405 11% (47,223) -3% (15,712) -3% (568) 0% 0% 0% 0% (636) 0% 0% 0% 150,497 9% 41,693 8% 0% 0% 28,570 6% HubSpot#24GAAP 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% HubSpot#25GAAP 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 March 31, 2020 Three Months Ended June 30, 2020 $'000s % of Revenue $ '000s % of Revenue $ '000s Three Months Ended September 30, 2020 % of Revenue Three Months Ended December 31, 2020 Three Months Ended Three Months Ended March 31, 2021 June 30, 2021 Three Months Ended September 30, 2021 $'000s % of Revenue % of $ '000s Revenu $ '000s % of Revenue $ '000s % of Revenue 160,683 81% 164,831 81% 185,782 81% 204,771 81% 226,631 81% 247,911 80% 269,589 79% 1,505 1% 1,703 1% 1,792 1% 1,945 1% 2,007 1% 2,408 1% 2,408 1% 880 0% 879 0% 442 0% 139 0% 239 0% 236 0% 234 0% 0% 0% 0% 0% 0% 0% (670) 0% 0% 0% 0% 0% 0% 0% 1,015 0% 163,068 82% 167,413 82% 188,016 82% 206,855 82% 228,877 81% 250,555 81% 272,576 80% (14,102) -7% (13,625) -7% (15,461) -7% (7,641) -3% (15,032) -5% (16,602) -5% (14,927) -4% 27,463 14% 31,374 15% 31,186 14% 31,466 12% 32,423 12% 43,433 14% 44,987 13% Amortization of acquired intangible assets 900 0% 899 0% 462 0% 159 0% 345 0% 337 0% 326 0% Acquisition/disposition related income (expenses) 333 0% 518 0% 340 0% 640 0% 1,195 0% 372 0% 350 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 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% 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 Revenue $'000s % of Revenue $ '000s % of Revenue $ '000s % of Revenue $'000s Three Months Ended December 31, 2022 % of Revenue Three Months Ended March 31, 2023 $ '000s % of Revenue Gross Margin Gross margin 297,670 81% 322,663 82% 342,824 68% Stock-based compensation 2,563 1% 2,658 1% 3,631 1% 361,831 3,479 82% 389,393 83% 419,574 84% 1% 3,673 1% 3,832 1% Amortization of acquired intangible assets 228 0% 321 0% 306 0% Non-GAAP gross margin 300,461 81% 325,642 82% 346,761 69% 292 365,602 0% 283 0% 399 0% 82% 393,349 84% 423,805 84% Loss from Operations Loss from operations (8,237) -2% (11,154) -3% (44,767) -9% (32,213) -7% (13,486) -3% (44,767) -9% Stock-based compensation 45,914 12% 45,704 12% 83,037 17% 72,213 16% 76,768 16% 83,037 17% Amortization of acquired intangible assets 318 0% 410 0% 845 0% 738 0% 729 0% 845 0% Acquisition/disposition related income (expenses) 170 0% 0% 0% 0% 0% 0% Restructuring charges 0% 0% 0% 0% 0% 28,570 6% Non-GAAP loss from operations 38,165 10% 34,960 9% 39,115 8% 40,738 9% 64,011 14% 67,685 13% HubSpot#26GAAP 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 $ '000s December 31, 2021 $ '000s March 31, 2022 $'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) (34,699) (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 79,044 133,141 157,904 170,786 203,291 204,658 June 30, 2022 September 30, 2022 $ '000s $ '000s December 31, 2022 '000s March 31, 2023 $ '000s 260,984 278,395 273,177 272,021 (36,252) (42,711) (37,426) (30,796) (36,649) (38,851) (44,345) (49,745) 13,400 1,971 - 22,513 201,483 198,804 191,406 213.993 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 * All amounts are trailing twelve months HubSpot