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HubSpot Growth Strategy

Long Term Financial Target 2016 2017 2018 2019 Q1'20 Q2'20 Long Term Target Gross Margin 78% 81% 82% 82% 82% 82% 81% - 83% R&D 14% 15% 18% 18% 19% 19% 16% - 18% % of revenue S&M 55% 52% 46% 45% 46% 44% 30% - 35% % of revenue G&A 14% 12% 11% 11% 10% 10% 10% % of revenue Operating -4% 2% 6% 8% 7% 9% 20%-25% Margin Note: These estimates reflect our current operating plan as of 08/05/2020 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. 24
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