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HubSpot Growth Strategy

HubSpot, Inc. GAAP to Non-GAAP Reconciliation GAAP to Non-GAAP Reconciliation 2017 2018 2019 Three Months Ended Three Months Ended March 31, 2020 June 30, 2020 $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues Cost of Revenue Subscription 51,563 1496 69,718 14% 98,510 15% 29,734 15% 30,400 15% Stock-based compensation (658) 096 (1,476) 0% (3,127) 0% (898) 096 (1,075) -196 Amortization of acquired intangibles (96) 09 (1,394) 0% (3,201) Acquisition related expenses 096 0% Non-GAAP subscription 50,809 14% 66,848 1396 92,182 Professional services and other 24,166 6% 30,639 6% 31,448 Stock-based compensation (2,327) -196 (2,924) -1% (2,829) Amortization of acquired intangibles 09 0% Acquisition related expenses 096 096 Non-GAAP professional services and other 21,839 6% 27,715 5% 28,619 咨咨瓷 添浴咨咨姿 (880) 09 (879) 0% 27,956 14% 28,446 8,551 496 8,377 (607) 0% (628) 096 0% 7,944 496 7,749 清姿浴浴瓷 姿诺诺咨姿 Gross Margin Gross margin 299,883 80% 412,623 544,902 81% 160,683 81% Stock-based compensation 2,985 196 4,400 Amortization of acquired intangible assets 96 096 1,394 Acquisition related expenses 0% Non-GAAP gross margin 302,964 81% 418,417 Operating Expenses Research and development 70,373 1996 117,603 Stock-based compensation (12,816) -39 (23,328) Amortization of acquired intangible assets 0% Acquisition related expenses (1,266) 09 (2,696) Non-GAAP research and development 56,291 15% 91,579 18% Sales and marketing 212,859 57% 267,444 Stock-based compensation (19,016) -5% (31,099) Amortization of acquired intangible assets (7) 096 Acquisition related expenses 096 Non-GAAP sales and marketing 193,836 52% 236,345 46% General and administrative 56,787 15% 75,834 Stock-based compensation (12,500) -3% (17,434) Amortization of acquired intangible assets 0% Acquisition related expenses 096 * 488 48 5,956 196 1,505 196 164,831 1,703 81% 196 3,201 0% 880 0% 879 0% 0% 096 096 096 554,059 82% 163,068 82% 167,413 82% 158,237 239 46,202 23% 49,372 24% -59 (33,748) -5% (8,708) -496 (10,111) -59 0% 0% 0% (357) 096 (330) 09 096 124,132 18% 37,164 19% 38,934 19% 340,685 50% 102,328 51% 102,600 50% (36,599) -5% (10,816) -59 (12,868) -6% 096 (20) 09 0% 096 0% 0% 304,086 45% 91,492 469 89,712 44% 92,971 14% 26,255 13% 26,484 1396 (21,451) -3% (6,434) -3% (6,692) -3% - 0% 096 096 (552) 096 (3) 096 096 Non-GAAP general and administrative 44,287 1296 58,400 11% 70,968 1196 19,818 10% 19,601 10% Loss from Operations Loss from operations (40,136) -11% (48,258) -9% (46,991) -79 Stock-based compensation 47,317 139 76,261 15% 97,754 1496 (14,102) 27,463 Amortization of acquired intangible assets 103 0% 1,394 096 3,201 0% 900 Acquisition related expenses 1,266 096 2,696 196 909 096 333 Non-GAAP loss from operations 8,550 296 32,093 69 54,873 896 14,594 ནཱརཱཎཧེཝཱ བྷཱབྷཱམཎྜ -7% *** (13,625) -79 1496 31,374 15% 09 0% 09 0% 79 19,166 9% 27
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