An Inbound Marketing & Sales SaaS Company

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2 Safe Harbor This presentation includes certain forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning our cash flow and margin improvement expectations, our position to execute on our growth strategy in the mid-market, and our ability to expand our leadership position and market opportunity for our inbound 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 forwardlooking 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, our history of losses, our ability to retain existing customers and add new customers, the continued growth of the market for an inbound 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 marketing agency partners; our ability to successfully recruit and retain highly-qualified personnel; the price volatility of our common stock, and other risks set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed on August 3, 2016 and our other 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. 2

3 An Inbound Marketing & Sales SaaS Company 20,444 customers, 90+ countries, 6 locations worldwide Cambridge, MA Portsmouth, NH Dublin, Ireland Sydney, Australia Singapore Tokyo, Japan $65.0M $59.0M 51% Y/Y $53.1M 54% Y/Y $47.7M 56% Y/Y $42.9M 57% Y/Y $38.2M 58% Y/Y $34.2M 58% Y/Y $30.4M 53% Y/Y 51% Y/Y Q3'14 Customers by Country Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Revenue 3

4 Why does exist? 4

5 The old marketing and sales playbook is broken. (Because the way people shop for and buy things has changed) 94% skip TV ads Base: Varied bases, minimum 598 global digital consumers Source: HubSpot Global Interruptive Ads Survey, Q Q % unsubscribe from 27% direct mail is never opened 50% (Over 200M) are on do-not-call lists 5

6 Marketing has become an arms race for attention. 6

7 But today s consumers have the tools to fight back. 7

8 Blocking Out the Noise Skip commercials Screen calls Delete spam It s easier than ever for customers to block out the noise Ignore print Pop-up blockers Straight in the bin 8

9 So how do you reach a consumer who doesn t want to be bothered? Be helpful. 9

10 Inbound Marketing & Sales 10

11 Wait. What is inbound? 11

12 Inbound is about the size of your brain, not the width of your wallet Helpful Human Personal Transformational Empowering Educational 12

13 How Does Inbound Work? Outbound Inbound VS. Aggressively pushes content at innocent bystanders, interrupting their life Inbound pulls in prospects by offering helpful content and experience when they need it Cold Calling Spam Interruptive Ads SEO Blogs Social 13

14 How does HubSpot do inbound? 14

15 Inbound Methodology 15

16 The Inbound Value Proposition: Simply put, it s about growing an asset vs. renting one Predictable Measurable Proven ROI Icon Source: via Gregor Cresnar 16

17 Predictable Did you know: More than 90% of HubSpot s new leads each month come from Old Content? In other words, if HubSpot s blogging team took next month off, we d still generate 92% of leads as if we d continued to publish new content. 8% Leads from New Posts 92% Leads from Old Posts Source: Historical Blog Post Optimization Project (learn more here: 17

18 What Does an Inbound Asset Look Like? This post was written by HubSpot CEO Brian Halligan in July In 2015, it: Still ranks #1 in Google searches Received 17,854 views Generated 117 leads 5 Years later, still moving the needle. Article ranks #1 for inbound marketing vs outbound marketing 18

19 Measurable In a digital world, track everything from clicks to conversions to revenue 19

20 Proven ROI 60% Inbound vs. Outbound ROI by Marketing Spend Big budget or small everyone gets big returns from inbound 52% 52% 50% 40% 30% 20% 10% 42% 8% 47% 14% 11% 44% 18% 48% 14% 18% We see higher ROI using inbound marketing We see higher ROI using outbound marketing No matter the size of your marketing budget, inbound can bring you ROI. This is the real deal. From big marketing budget to small, a significant number of businesses saw higher returns from inbound marketing than from outbound. 0% $25K or less $25,001 to $100K $100,001 to $500K $500,001 to $1M $1M to $5M More than $5M Source: HubSpot s 2015 State of Inbound Report; survey of approximately 4,000 respondents; majority of respondents are marketers at B2Bs; approx one-third of respondents have an affiliation with HubSpot; approx ½ of respondents generate revenue under $1M 20

21 Top Challenges by Company Size Proving ROI and subsequently securing more budget are marketers biggest roadblocks Proving the ROI of our marketing activities Securing enough budget 32% 32% 42% 51% 57% 71% As it turns out, ROI matters. A lot. Managing our website 32% 31% 31% Identifying the right technologies for my needs 22% 29% 31% 0 to 25 employees Training our team 23% 24% 26% 26 to 200 employees 201 or more employees Targeting content for an international audience 23% 23% 24% 19% Hiring top talent 25% 22% Finding an executive sponsor 5% 8% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: HubSpot s 2015 State of Inbound Report; survey of approximately 4,000 respondents; majority of respondents are marketers at B2Bs; approx one-third of respondents have an affiliation with HubSpot; approx ½ of respondents generate revenue under $1M 21

22 We are an inbound marketing & sales SaaS company. Our mission is to transform how companies market and sell. Our vision is a world where business is inbound. 22

23 Total Addressable Market There are ~ 3 million mid-market companies in US, Canada, and Europe alone. With an ASRPC of $11,978, we re looking at $30+ billion of untapped potential. Mid Market Opportunity With growth in international via new market exploration and in ASRPC via new products, we anticipate this opportunity will continue to grow. -3.0M is US, CAN, and Europe. 1.6M mid-market businesses with a web presence in the United States and Canada. 1.4M mid-market businesses with a web presence in Europe. -AMI Partners data, Avg. Subscription Revenue per Customer from Q

24 The Inbound Community 14,000+ Registered Attendees Where the inbound movement grows every year 40% more registered attendees than speakers; hundreds of hours of content 123k mentions of #INBOUND15 45,000+ Certifications HubSpot s one-stop-shop for free education on all things inbound 3,300+ Partners HubSpot provides training and support to our agency partners, working together to sell our products. 160,000+ Members Where the inbound movement grows the other 360 days of the year 47,000+ Linking Domains The number of websites linking back to HubSpot, providing us with both authority in search engines and recognition among industry professionals 24

25 The HubSpot Platform HubSpot Marketing HubSpot Sales HubSpot CRM All-in-one marketing software platform Sales Productivity Tools Free CRM for Small Business Content Marketing Automation Analytics & Reporting Websites Ads Add-on Templates Profiles Tracking Sequences Contact Timeline Reporting Analytics Prospects 25

26 HubSpot Marketing Pricing Upgrade based on contact database size. Cross sell new products into both marketing and sales customers Upgrade based on features. 26

27 HubSpot, in the words of others. Product and Service Awards Named a Visionary in Gartner s 2015 Magic Quadrant for CRM Lead Management Frost & Sullivan 2015 Global Marketing Automation Software Customer Value Leadership Award G2 Crowd: Best Marketing Automation Software, Best Web Content Management Software, Named a Leader in the Summer 2015 Marketing Automation Grid Company Awards Glassdoor: #4 Workplace Fortune & Great Place to Work: Top Workplace for Camaraderie, Best Small & Medium Workplace, Top Workplace for Women Entrepreneur: Top Company Culture The Boston Globe: Top Place to Work Boston Business Journal: Best Place to Work What do these accolades mean? In combination with HubSpot s close proximity to Boston s top-tier schools, we attract top talent. 27

28 Customer Case Study: VeriFirst Background Screening Problem Solution Tools Low organic traffic Blog Poor web presence Sites Multiple point solutions SEO Three Year Results: 12X increase in monthly traffic Inefficient sales funnel Poor lead nurturing Poor S&M alignment Slow sales onboarding templates tracking Sequences Contact timeline Prospects Tasks 11X increase in monthly contacts generated 6X increase in monthly customers Source: Customer data; Note: Three Year Results compare the 6-month trailing averages of visits, contacts, and customers in August 2012 to the same values in May

29 HubSpot, in short Growth opportunity with multiple drivers - Large, diversified and expanding global addressable market - Drive new customer growth, cross sell existing products and grow internationally Efficient and scalable customer acquisition model - We expect margin improvement will drive sustained positive operating cash flow throughout 16 and break-even free cash flow in 1H17 29

30 Financial Review 30

31 GROWTH DRIVERS: Domestic International Cross Sell Opportunity $34.2M 53% Y/Y $38.2M 58% Y/Y $42.9M 58% Y/Y $47.7M 57% Y $53.1M 56% Y/Y $65.0M $59.0M 51% Y/Y 54% Y/Y 13,607 35% Y/Y 14,746 35% Y/Y 15,839 36% Y/Y 16,854 35% Y/Y 19,322 18,116 31% Y/Y 33% Y/Y 20,444 29% Y/Y $11,978 $11,135 $11,494 $10,607 18% Y/Y $9,530 $9,740 $10,127 17% Y/Y 18% Y/Y 16% Y/Y 14% Y/Y 15% Y/Y 15% Y/Y Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 REVENUE CUSTOMERS ASRPC 31

32 Steady growth in Gross and Operating Margin trajectory 68.9% 70.0% 70.1% 71.9% 73.5% 74.8% 74.7% 75.1% 77.0% 77.6% 1000 bps improvement operating margin year-on-year Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2' % -26.0% -31.8% -20.7% -16.4% -13.2% -18.3% -8.3% -6.1% -3.9% Operating Margin (Non-GAAP) Gross Margin (Non-GAAP) All percentages for historical period are non-gaap and exclude expenses associated with stock based compensation and amortization of acquired intangibles. Please refer to the end of this presentation for a reconciliation of GAAP to non-gaap figures. 32

33 Key Financial Metrics Key financial metrics Q1 16 Q2 16 Gross Margin 61% 70% 65% 70% 75% 77% 78% R&D 27% 19% 18% 17% 14% 14% 14% S&M 82% 66% 67% 63% 58% 56% 55% G&A 21% 16% 19% 18% 16% 14% 13% Operating (Loss) / Income % (69%) (31%) (39%) (28%) (14%) (6%) (4%) CFFO (44%) (11%) (26%) (11%) (0%) 5% 13% All percentages for historical period are non-gaap (other than CFFO) and exclude expenses associated with stock based compensation and amortization of acquired intangibles. Please refer to the end of this presentation for a reconciliation of GAAP to non-gaap figures. 33

34 Thank you from HubSpot! 34

35 HubSpot, Inc. GAAP to Non-GAAP Reconciliation GAAP to Non-GAAP Reconciliation Year ended December 31, Three Months Ended Three Months Ended March 31, 2016 June 30, 2016 % of Revenues % of Revenues % of Revenues % of Revenues % of Revenues % of Revenues % of Revenues $ '000s $ '000s $ '000s $ '000s $ '000s $ '000s $ '000s Cost of Revenue Subscription* 4,964 17% 9,689 19% 18,745 24% 23,655 20% 32,271 18% 8,910 15% 9,985 15% Stock-based compensation (16) 0% (27) 0% (50) 0% (128) 0% (341) 0% (94) 0% (131) 0% Amortization of acquired intangibles (130) 0% (224) 0% (359) 0% (118) 0% (70) 0% (18) 0% (13) 0% Non-GAAP subscription* 4,818 17% 9,438 18% 18,336 24% 23,409 20% 31,860 18% 8,798 15% 9,841 15% Professional services and other 6,368 22% 6,004 12% 8,759 11% 11,425 10% 15,652 9% 5,061 9% 5,210 8% Stock-based compensation (131) 0% (100) 0% (211) 0% (498) 0% (1,216) -1% (324) -1% (477) -1% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP professional services and other 6,237 22% 5,904 11% 8,548 11% 10,927 9% 14,436 8% 4,737 8% 4,733 7% Gross Profit Gross Profit* 17,221 60% 35,911 70% 50,130 65% 80,796 70% 134,020 74% 44,989 76% 49,779 77% Stock-based compensation 147 1% 127 0% 261 0% 626 1% 1,557 1% 418 1% 608 1% Amortization of acquired intangibles 130 0% 224 0% 359 0% 118 0% 70 0% 18 0% 13 0% Non-GAAP gross profit* 17,498 61% 36,262 70% 50,750 65% 81,540 70% 135,647 75% 45,425 77% 50,400 78% Operating Expenses Research and development 10,031 35% 10,585 21% 15,018 19% 25,638 22% 32,457 18% 9,804 17% 11,278 17% Stock-based compensation (2,341) -8% (739) -1% (691) -1% (6,190) -5% (6,327) -3% (1,758) -3% (2,272) -3% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP research and development 7,690 27% 9,846 19% 14,327 18% 19,448 17% 26,130 14% 8,046 14% 9,006 14% Sales and marketing 24,088 84% 34,949 68% 53,158 68% 78,809 68% 112,629 62% 35,198 60% 39,140 60% Stock-based compensation (647) -2% (691) -1% (1,194) -2% (5,596) -5% (7,658) -4% (2,427) -4% (3,469) -5% Amortization of acquired intangibles - 0% - 0% - 0% (20) 0% (26) 0% (6) 0% (7) 0% Non-GAAP sales and marketing 23,441 82% 34,258 66% 51,964 67% 73,193 63% 104,945 58% 32,765 56% 35,664 55% General and administrative* 7,517 26% 9,117 18% 16,204 21% 24,958 22% 35,408 19% 9,848 17% 10,391 16% Stock-based compensation (1,484) -5% (958) -2% (1,318) -2% (3,946) -3% (5,766) -3% (1,628) -3% (2,126) -3% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP general and administrative* 6,033 21% 8,159 16% 14,886 19% 21,012 18% 29,642 16% 8,220 14% 8,265 13% Loss from Operations Loss from operations (24,415) -86% (18,740) -36% (34,250) -44% (48,609) -42% (46,474) -26% (9,861) -17% (11,030) -17% Stock-based compensation 4,619 16% 2,515 5% 3,464 4% 16,358 14% 21,308 12% 6,231 11% 8,475 13% Amortization of acquired intangibles 130 0% 224 0% 359 0% 138 0% 96 0% 24 0% 20 0% Non-GAAP loss from operations (19,666) -69% (16,001) -31% (30,427) -39% (32,113) -28% (25,070) -14% (3,606) -6% (2,535) -4% * Amounts in years ended have been adjusted from prior SEC filings for reclassification of customer credit card fees from cost of revenue, subscription to general and administrative expenses to conform with current year's presentation. 35