O P E R A T I O N S O V E R V I E W. JD S HE RMAN President, Chief Operating Officer

Transcription

1 O P E R A T I O N S O V E R V I E W JD S HE RMAN President, Chief Operating Officer 1

2 Important Information 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 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, 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 2, 2017 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 INBOUND 2016 A LOOK BACK 3

4 HubSpot Product Evolution Years 1-4 Content Marketing Years 4-8 Marketing Automation Years 8-12 Sales Tools CRM 4

5 HubSpot In 2016 Marketing Sales 5

6 HubSpot Moving Forward Cross-sell Marketing Total Opportunity 21k Customers Growth Stack Customers Code Funnel Cross-sell Opportunity 6

7 Freemium Code Funnel 7

8 Freemium Funnel Playbook Grow Activate Convert Users of our free software platform Sign-ups to become users and teams Users and teams to our paid products 8

9 Grow: Weekly Active Users Of CRM 150, ,000 50,000 June 2015 June 2017 Weekly Active User is a user who takes one or more actions in the CRM, such as viewing a contact record or adding a deal, during a seven day period. 9

10 Activate: Weekly Active Teams Of CRM 25,000 20,000 WATs convert to paid customers at ~ 4x the rate of non-wats 15,000 10,000 5,000 June 2015 June 2017 Weekly Active Team is two or more users of the same portal each take one or more actions in the CRM, such as viewing a contact record or adding a deal, during a seven day period. 10

11 Convert: Free CRM Users To Paid Customers 11

12 One HubSpot 12

13 Cross-sell And Up-sell Playbook Drive Growth Stack Adoption Sell Sales into Marketing install base Sell Marketing into Sales install base Sell both Sales and Marketing together 13

14 Growth Stack Install Base Revenue Increasing 30% One 20% 10% October 2016 June 2017 % of the install base revenue on growth stack 14

15 Growth Stack Entry Points 16% 31% Sell Sales into Marketing Sell Marketing into Sales Sell both Sales and Marketing together 53% Percentages are based off of new growth stack customers for 1H

16 Partners Also Fueling Growth Stack 20% One 15% 10% 5% December 2016 June 2017 Cumulative % of reselling partners selling Growth Stack 16

17 INBOUND 2017 LOOKING FORWARD 17

18 What You Will Hear About Today Evolution of Inbound Modern Tools Funnel to Flywheel 18

19 Inbound Evolution Text PR Forms Full Service Video Social Messaging Chat Self Service 19

20 Modern Tools Website CMS Marketing Automation Bots 20

21 What sources of information do you rely on when making purchase decisions? Word-of-mouth referrals 59% Customer references Media articles Vendor-authored materials 44% 43% 49% Analyst reports 33% Crowdsourced reviewed sites 26% Salesperson 18% Source: Internal Study State of Inbound C-level executive (CEO, CMO) 21

22 The Growth Flywheel 22

23 Summary 23

24 THANK YOU 24