HubSpot (HUBS) 5 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Chuck MacGlashing	Head-Investor Relations
Yamini Rangan	Chief Customer Officer and Chief Executive officer
Kate Bueker	Chief Financial Officer
Brian Halligan	Co-Founder and Executive Chairman
Dharmesh Shah	Co-Founder and Chief Technology Officer
Samad Samana	Jefferies
Mark Murphy	JPMorgan
Brad Sills	Bank of America Securities
Stan Zlotsky	Morgan Stanley
Ken Wong	Guggenheim Securities
Alex Zukin	Wolfe Research
Drew Foster	Citigroup
Terry Tillman	Truist Securities
DJ Hynes	Canaccord
Brian Peterson	Raymond James
Parker Lane	Stifel
Alex Narum	Needham and Company
Matt Diamond	Mizuho
Michael Turrin	Wells Fargo
Michael Turits	KeyBanc Capital Markets
Brent Bracelin	Piper Sandler
Kirk Materne	Evercore

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the HubSpot Q2 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Chuck MacGlashing, Head of Investor Relations for HubSpot. Thank you. sir. ahead, go Please

Chuck MacGlashing

the afternoon, call. to the Shah, is Chief Dharmesh Customer Kate newly CEO; Today, press issued in Good Co-Founder this Officer the me XXXX Executive results second afternoon earnings and the after Bueker, named was Yamini that conference and we’ll release closed. and operator. With HubSpot on Financial Halligan, welcome and quarter announced market Brian call and Thanks, be Officer. our Co-Founder CTO; our newly Chairman; our our Chief Rangan; named discussing

we your in safe Before start, to I’d release. press draw like included attention statement to harbor the today’s

During considered Securities amended, as Section forward-looking of Act third related statements and those expected forward-looking outlook, of amended. of XXE and than Exchange including transitions may and and the Securities financial regarding Exchange of fact including performance XXXX. year statements within as this full operational quarter the statements, Section XXXX, and we’ll business be our the Act that expectations are guidance management’s operational the meaning make All financial leadership of of to for XXXX, our other call, the of historical fiscal growth, statements business expenditures, future XXA

expectations. forward-looking statements these law, statements. except only Please we cautionary and for results Forward-looking that which reflect actual Form to in update as by today’s discussion revise and could release views filed from the refer risks differ and, this as undertake to required our of today XX-Q, our or no language obligation the be uncertainties materially to a press with SEC of the will afternoon cause

or in Investor G. can our non-GAAP directly and to of a press used of measures release we’ll XXXX call, our financial second differences website. by as today’s Relations each the be reconciliation the measure most comparable of course found financial GAAP such quarter defined refer measure financial earnings non-GAAP between certain discussed The measures section to the During Regulation within

soon Now Chief it’s Officer, call Rangan. the Officer, Yamini to be turn Chief Customer to my Executive pleasure over to HubSpot’s Yamini?

Yamini Rangan

you Brian as second greetings, Thanks, that likely I exciting Xth. Thank the as the role be news results. September Executive on quarter Chuck seen taking know Chairman everyone. joining review and will we you’ve us XXXX HubSpot’s of for earnings of today

all as looking We’re reflections returns having today’s he in path on fantastic will that new than next be results. to some when the the about this back us this forward joining minutes month. to Brian to here and share call led and news action quarter forward Brian the a in as XX well ever years few talk capacity, to in stronger have

Before want the to we hand, do results I quarter. at on last the from great focus that, business

office is towards revenue constant to interface platform, we’re realizing to on front transformation strength XXX,XXX. of one is seen to model, as in use. their that customers growth that’s year-over-year and QX one past driver evangelizing has of shift data continue companies a one XX% customers. the seeing This key HubSpot powered with been more XX% and to multi-product of digitally growth digital customer this business total position one to with entire that user have more XX currency the growth A years. for operate broad continued great their indicator total to half to of A of one customers over We’ve view over advantage our adoption growing companies had We are doing online. easy managing from adapt accelerating experiences year-over-year

the moment. about we’ve the been meet So vision to

an experiences our a content to This journey, website at They’re often all experiences website. door. just systems is of for to solution, nice a launched part lack of that companies speed, together. in revenue CMS to digital scalability siloed business. we digital That’s why companies need Traditional This to are a built customer CRM A long-term expect enables tie manage, each Starter increasingly scaling but step together CMS give need grow their remarkable Hub digital key and website to is they front their Having all data. makes maximize build company of platform CRM Enterprise marketers consumers it efficiently Hub platform and seamless functions. front not are access yesterday. our that Hub growth driver opportunity. continuing both of part and companies with powerful indispensable the management CRM to launched last Professional generating complex and as office As Starter we digital powered have remarkable invest work a the security of their is platform from experience and customers. to other to to essential CMS year the CRM developers

the our reflect increased As to value are adjusted enhancement, also Professional roadmap. to even Enterprise and CMS pages, part tiers and Hub of through with and capacity trees advanced delivering our more the launch, site customers of in limits that the we increased pricing SEO we dynamic features

that early of are less time launch, system a are their looking and driving growth. this in but still stages was time confident painful gap marketers we Starter for Hub and managing to still that We’re CMS more developers spend

operations and internal customers feedback launch to hear popular revenue Another quickly of quarter operations. compelling ahead excited our of of growth. revenue talked integration new will past drive is Operations exemplifying half. of a we our robust Hub growth has and partners our become become CRM of Last engine platform. amongst I nicely I’m empower drivers Data adoption small that to how role and the Operations designed them over the of particularly has a transformation the the about quarter, Sync, free continuing important Hub, performed most and tools, Operations share from customers, expectations one Hub that’s and of professionals product and to positive first strategic to transform digital function new are

programmable their looking the who data also among companies are their of larger strong take automation personalized We’re to advantage customers. full adoption experiences of deliver and seeing to

the renewal X partners it top this With automate data calculations enrichment, processes to Hub, in to dream automation had build solutions programmable more automation from can our HubSpot One the to significantly if feature. We’ve in commission, makes Thanks communications. to Aptitude it. you business to advanced feedback. say Operations HubSpot integrations you the about most team of even ERP can at for used the sharing flexible. it, Programmable

than are through focused clunky so to in-house matched Hub. a on with a Both value consumer examples it acquisitions, of Operations Operations Hub grade and in sets I’ll they’re over backend We’re crafting becoming coddling commitment Kate a CRM delivering that together position seeing to our that’s CMS With glad CRM enterprise turn platforms of platform goal Starter of rather financial to great give our puts in Hub results. UI strong for and our traditional from number scalable HubSpot to it an our fantastic the companies. one overview that, CRM achieve us apart scaling platform

Kate Bueker

Thanks, Yamini.

to full our second quarter financial and year turn quarter the Let’s results and XXXX. for our of guidance third

both revenue services as constant and year-over-year currency other increased on reported revenue XX%, grew an subscription QX reported. XX% XX% XX% while as basis. grew Second in year-over-year, and revenue quarter

healthy in in the hubs, benefiting of performance customer across very retention see once all geographies We continued quarter, again levels. strong and tiers dollar from strong our Revenue QX. continued to retention be to

benefit continued diverse addition net cross revenue activity drivers In retention addition, expansions. and set our particular with a to upgrades, strengths upgrade sell from of seat from

HubSpot We growth they two international of adopt year-over-year more out net the quarter revenue value approximately in As count International as customers total grew XX% year-over-year a to bringing revenue XX% our represented in reported. year-over-year. up grew XX% customer subscription while QX, added revenue X,XXX over our was revenue of customers revenue total in of XX% $XX,XXX. hubs X% constant or four in to XX% and QX, XXX,XXX, as points XX% of as are currency platform. Domestic per Average getting QX, up year-over-year. customer

toward strong the selling a enterprise with and install coupled we our tiers, As mix saw shift base professional in quarter. positive

continue expect half selling shift through strong XXXX. install base the product and positive We second of to our mix

comments performance to constant remainder currency a by the result quarter was in will business and the $XXX million XX% quarter, measures. overall of to we strong high was the XX% in in from The million, as XXXX. driven digits in a June, single to currency QX. expect in as year-over-year comparison of was Suite ASRPC revenue, As growing second an customer around environment Growth non-GAAP anticipate in Calculated and year-over-year. addition as XXXX. easier acceleration in net Starter business levels, billings refer $XXX This result, my challenging customer against a reported. growth robust we QX additions we of end as increase And additions Deferred compare second sustain of year-over-year continue XX% half these the growth to the of constant billing

was Second point quarter services’ gross Subscription gross gross X%. margin XX%, negative margin was year-over-year. one a over down margin XX%, little was while

revenue. quarter same Second relatively X,XXX quarter the software the or revenue in of just in strong had Net our $X.XX exceeded expectations quarter, $XX in flat flow result ago. as a or up diluted of compared CapEx Free costs was as million the capitalized share. performance. X% quarter for the was employees, cash million margin was fully primarily the period X% to year-over-year. end our second XX% we of under $XX $XX was million revenue X% income operating QX. Operating or second margin development year in At of quarter a including the

of X% $XXX a and in CapEx between free free as cash expect quarter to continue flow strong We QX. a expect and about $XXX now be in to to million XXXX cash with be flow seasonally million revenue percentage

dive and the with billion and into full for end of XXXX. marketable securities $X.X that, let's the of year June. our cash at And quarter guidance totaled third Finally,

income quarter, XX% diluted outstanding. now per of now $XX and to be at for billion total $XXX of operating fully and is to income of expected Non-GAAP year-over-year assumes to This $X.XX revenue And between $X.XXX $X.XX. income year Non-GAAP $XXX expected to Non-GAAP million, expected share to million XX.X total is in $X.XX expected XX% million operating is expected shares between is to revenue diluted range full between $XX between be be the million. share in This up now is and and midpoint. the Non-GAAP million million be For diluted per million. $X.XX. billion, fully million at $X.XXX assumes the income $XXX be third range net the be to net outstanding. to $XXX is XXXX, the expected midpoint. diluted XX.X year-over-year the shares up

full the an points two and in As of keep the QX, we're models, you three current forecasting neutral point tailwind following. a FX reported for to rates, tailwind adjust spot revenue a as year. QX mind in At your impact to

of as look many I our some part virtual things our inbound over And XX. of that, hand forward Brian XXXX Lastly, analyst for to closing October seeing thoughts. day again you to I'll with on for event

Brian Halligan

body pleasure true have is so I'm to The a quite one, little that head well-wishes recovery over my past done during a but you It's you. of They've of making to thankful all be back absence. Yamani, time been XXX% been has that but really, a to Kate. therapy, of XXX% all back, proud the to the long and to I'm say HubSpot also huge soon. progress My work you physical in And so speak months. couple able I'm cranking feeling Thanks, more rest entire for want of good. for my the away. sincere get needs thank to Kate again. I'm of the the a of with great to really team absolutely My team. thanks well road the to you, I my Dharmesh, all leadership

and I'm Now, XX are years, and ARR more celebrate better. of a we've year, last hit millions a able very mission employees. This customers. helped back to we've accomplish. back and passing proud grow for actually anniversary I These the value exciting organizations in driven been customer. partners founding. the the in of year just early When $X still like It super the billion truly solve to the of some built what at our to HubSpot look start, we provide organization XXX,XXX designed have We in past June, our innings HubSpot's XX milestones customers, to lot

We've to Warren going model app sitting planted success the someone's take is, far that suite office Today, willing others from something years of to quite been seeds from from a in had shade a keys to the front premium someone marketing platform, several we afraid shade front paying ago. of shifting modern One to nutshell. that haven't the so up front are goes office a a to HubSpot on. and the many, a seed been a quote we've That's today inspiration Buffett like in because all our shifting office plan before. many suite, shifting lots nice to like,

been the I've moving role over can have I natural impact a moving last months, forward, thinking Executive a on about six Chairman Now to fit. like the the lot and HubSpot most how feels

of leader Workday and service we align a is for being roles customers. much than to more I'm the exciting to out confident would Member by that from if lead congratulations gotten the an lean into getting to Yamani for ready teams no pandemic. through arrived, create moving I Yamani Executive Executive leadership But experience Dharmesh thank Yamani not empathy of that CEO me we’re hired cohesive be our reducing And my the holding terrific role that the record and an and once journey be to better. Dropbox to both what milestone, complement over planting for to leading chapter. want knew customers she's the the you excite person customers trees transition ability sales perfect will have we and As made be of high-impact her able help for again, HubSpot and grow will I'll track company in shady our Yamani’s time. My she's to she's since day years just all me with and able she's to to I and an to lead so thanking SAP, amazing actually the want weren't the When about turn close more and right this the at like next we've with Chairman Board, into HubSpot things seeds super marketing Dharmesh come. better proven the we nurturing to HubSpot. and to And has that excited partners Yamani HubSpot our six doubt incredible her possible, months the for offering forward. I past to write on and on to of take your of clarity ahead. super the friction more

you. to speaking of Now, over Yamani,

Yamini Rangan

that to and support here make Thank be Dharmesh to open build grows. innovative culture It employees customers call role platform please who some Operator, to ultimately working And incredible I'm continue and for for for and your deeply kind and the this excited for CRM our HubSpot. I'm invaluable, leadership take you up number to our as words a us together founders use so for will super that continue questions. much, your HubSpot visionary one team. Brian, company. the today. the HubSpot here scaling HubSpot remarkable products time for during was in grateful, excited leadership on at humbled, my as you, new got partnership your entire with

Operator

first Samad Samana Jefferies. from question is [Operator Instructions] from Our

is open. line Your

Samad Samana

a early, Good Welcome be give from little forward. at move full leadership core if HubSpot's for really all spades, XQ representing company each it's I'd of Brian. really hear you're you up been Executive recently, about at great about will your move us love vision months. to but and It Dharmesh on individual focusing Yamini’s these built congrats the evening. years. dividing have hear. great the Maybe some to you, then back, Chairman to strong the congrats and And more you And both hell be time. forward? maybe happy, CEO thoughts how to two steering will staying map Yamani on for the And attention? you six would could going Yamini, you've your responsibility strategy you be of going where as obviously bit

Brian Halligan

voice, my recovered you head will I to is my and kick friend, feel say But question and a colleagues I'll room and My I time for hear friends your off thank from for great with in fantastic. it here. it terrific my hand it me. HubSpot Samad, in asking the Yamini. much this fully to thrilled to very back is just first is accident be

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is The We're That's always paid seed kind culture, to sweet growth trees we still seeds first premium go place on just second platform turn It's all vision. like suite tree, shady planted – go suite. and and over long long, into going product long the There's years. the the app are The a that to is tree, more ago, type doing And products now help really work thing planted lot ending the I've to big that we've put it's that years I drive have enjoyed small enjoyed tree. planning to this ago of that of all of top model, like the we I and fee. these on the time off. well. to long, a the like several

that's So about How focused be and where just going kind you, then Yamini. of Yamini? I'm helping to

Yamini Rangan

Well, work role take HubSpot. us growth of I'm focus the think and going growth and who've on be and XX get this because not chapter just lot The new excited product to to to their years thank next And curiosity, have scaling centricity mindset, Dharmesh, on I brilliant and Brian you, experience. focus I humbled, people in at a who fantastic powerful. the common say, with It's done I have I experience, customer two grateful, of combination on my for particularly three this – of innovation, is share Brian. focus of so excited customers super write I'm would plus

You vision about asked and the question strategy. the

Our clear. vision is

that of couple And changing. just the over of the articulate getting it's it's And for to started it's and had last the Our accomplishing grow years not last vision working, better, strategy, in I strategy, it's been clear help or six vision. we're is threefold. organizations months to if and millions

sub you've you do by best-in-class our we'll this like to by with And a build CMS to about we'll platform hub do for companies. quarter. want existing investing scaling CRM us hubs we off, quarter, into last the of expanding heard saw do this heavily and operations this hubs new First

product. way We to long have do to the more a just lot a go terms of in

The segments. second fueling all part of of our strategy is our

the product continue good the and they've XX lower unparalleled to to market the the XXX heavily end to segment, there. on invest at Now fit been really historically to segment XX, been XXX we of to the in we focus investing one We've and one we'll XXXX. have and in XXXX

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write excited next HubSpot. super am chapter of this to started I journey on get the growth and at So

Samad Samana

Thank there news look on if great. against the that wouldn't if detailed that and there's you XQ. the us you the know Maybe were know That's there, just duration than larger understand but it changed seats Just was enterprise of for Kate, help I lean more that, very I the amount that normal? anything of in if – us toward but good easy I just a that strength was quarter that or there? can help even customers more didn't took unpack in really both big strong HubSpot was there's billings transition, the strong. very just either And – for number very, an the ask financials, answer. be quarter comp I terms

Kate Bueker

bookings out performance easier in currency. that – Sure in The The of There's driver had ordinary a relatively in QX Difficulty] growth I for would is kind the relative to in and constant thing billings not that we question out biggest there a big Yes. compare it that Samad. quarter. the the duration. you one was point revenue got not there's of here. the [Technical lot of strong the changes things, much billings of is

we XXXX on had of a You that a QX of release our a short QX, number in year last customer impact negative might bit term ran billings. remember plays

little And bit billings a revenue. an frankly, time easier is so of comp in

Samad Samana

to inbounds. you on But seeing miss again, and yet the you. Great, look we'll forward thank call. Brian, future congrats

Brian Halligan

investor in actually soon. the I'll at the pretty be you inbound. see in day I’ll Yes,

see will soon. So you we

Operator

And question Mark Murphy from is JPMorgan. next our

is open. line Your

Mark Murphy

much it's better voice. much, your very Brian, I reading much enjoy Yes. hear you your Thank as so to as tweets,

these So great you both tremendous to hear start Yamani, me all of milestones. let from you on with and this. congrats to

think maybe talked whether just some in companies. the have marketing I'm mid-market which bringing channels or high-end driven features the are the of be past emerging. in greatest additions, wondering custom it objects down enterprise recently you that or I about to features traction account-based different

Just anything might else you see, the that which here? in resonating be results

Yamini Rangan

Yes. to your your Thanks making Good a an lot, both of voice and enterprises all appreciate for enterprise, and Brian hear have wish the Mark. that myself. I we that say investments working. product

In really to of one us strategy lot lot for features that of with and focus of Our as conversation CPQ the features beginning XXXX, hit we deeply year objects, up to been from the this a huge our we inbound, and of segments of products up the every sales advanced is huge fit we know, year at customers. the area pop a And as you now that's build the marketing custom year, that our intelligence. our powered that segments hit. resonated and hub QX announced added last we launched enterprise, XXX we market added

resonating suite of added it we Now category deeply it’s our a within itself, whole the is that hub fact market. a is and now and the power part seamless in that of a to and

to a and things. grade what as share continue So working if look and strategy at powerhouse as a build for we're the invest growing fast and features while consumer market to That product ease is that. of maintaining is is well market, that you our of just broadly, getting on go feeling continuing to to we'll up both the fair market, use continue

Dharmesh Shah

objects, really we've that – we're received, thread. to custom which that pull we well about been thing on continuing seen talked has One

but have have idea for, asking within HubSpot. business to is we objects, for things been that model associations, custom to and So for a able data entire this the the be company there customers

well. can So the of more the segments to percentage serve a gets, hold as XXXX can XXX data more we we there flexible higher database

Mark Murphy

on Okay. for it just another Appreciate Thank roadmap Yamini, color. quick on additional strategy. focused you the you're the that. and sounds And mostly executing like preexisting follow-up,

[Technical part falling think been time or how a maybe operations for of kinds tweaks well, I'm is market focus – view? carry you little the do to optimal on of conversation Samad’s performing big do the the intelligence little been right. and of You've amazing philosophies or some this a question, think, versus Difficulty] right side it. It's down kind you of just the you just those I where put are of make different instance, hubs, unique any any have that number on up market sectors wondering,

Yamini Rangan

That's a great question.

goes earlier back I think the it terms to in thoughts of strategy.

is strategy Our clear.

continue We just work the our in job two, horizon the bottom to how really one, the the focus that horizon our segments. really forward the innovation in innovation also of I Dharmesh off empower came And Mark, have XX in have our my invest with best have focus we make we'll bets hubs a market. collective the of existing the to Then we and to we'll heads focus CRM June from And for our means new ideas. horizon company. suite in worked next and on That in product the having continue years. offsite hubs. in strategy on is terms look going we’ve as continue type of market it segments, as the as segment, Brian, motion product to think of strong, investments plenty but to additional well there's continue for annual we three through led which every to how up our gotten. end, motion the where the do portion that at at well we the And that optimize we've to all way I XX we of are have. investments XXX optimize do we is is fired

continue the be to will excited. I'm that so and super focus And

team think product. have right in the I we leadership

really and team to I'm We them. focused leadership team the go-to-market of right with all have the excited execution in and work

Mark Murphy

you. Thank Excellent.

Operator

And question our from is next of Sills America Bank Brad from Securities.

Your line is open.

Brad Sills

and again. your guys well. as roles, to great you your to both Thanks new Great. congratulations Yamini from and Brian voice Great hear and hear well-deserved Brian, on

in market. me you're quarter acceleration One and of the driving was executing obviously that the be stuck up for things lot a could out the ASP that

traction, when You're just seeing more look ASP a upsell, of lot coming scale early with enterprise hub, and in from the operations hub be you question where that My it's larger operations is driving across could growth there. is some different the there. products, customers, that uptake there's levers multiple the incremental results all

even maybe rank acceleration that If what's driving ASP? been Thank you in could you. just just stack

Yamini Rangan

Yes. it. Many uptick inside of

seeing of we real drivers and interesting that it's think a that strong that ASP where quarter had sort I really of will the growth. where see you you're to tell

also professional addition that seeing the we're number thing tiers. The tiers, say strong is We particularly you our is that saw including for fueling operations upgrade I business, to hub. the final selling of and the were an the a had seats of tend quarter which into first ASP. in our really sales enterprise install larger with from And our enterprise professional enterprise then, sell on and side. would starter and professional nominal I additions guess the the a base, And a record the into quarter the customers highlight in expansion then of I have cross thing new just new the strong would

Operator

Thank you.

Morgan Stan Our from next question Stanley. Zlotsky is from

Your line open. is

Stan Zlotsky

you strategy spirit going best as pricing moves to far the within on Thank the guys my the – and why through exciting walk you and on of to guys changes end, these customers existing you manage so grandfathering similar very Could the changes to customers Quick back are quick follow-up? the question hear the from that on mainly the some company and you that great pricing that calls. Brian, in say of changes, pricing voice Perfect. mentioned pricing congratulations much new products. your obviously, what, a as for have it changes, timing is and the as the then fair of you're and follow the

Yamini Rangan

disrupt our base see twofold, added Thanks for us value And pricing continue you bring us. philosophy the insure and Stan here. will to is started is general, allowing to what question. we Yes. a do our our to does lot, features disruption versus managed us In within high install that premium what is competitors down

tiers that keep and features second adding new strategy part pro the ensures innovating of to and The higher our it also that is we enterprise.

pricing broader what with us. That's saw you really our for It's worked that's so well And do philosophy. CMS. exactly

terms second more time lot of customers value this your of features very problem. a therefore are that customers this parole, enterprise confidence period the over in kind of increasing to a and – floor comfortable we impact As feel all And roll on out, we'll new question similar and added of there's our moves first to we grandfathering, then that we have will delivering in to more that and pretty price.

Stan Zlotsky

you qualitatively Got I really but results outstanding helpful. How Got just the retention, That's really maybe it know net it. doesn't very then on did follow-up relative you give the And quarter, it directionally. in every up guys it. revenue really put – guys to don't do QX?

Yamini Rangan

customer again, really seen back of upsell that dollar I basically We healthy same the in retention, in there thanks. and the that terms we quarter It net there another are of revenue tell foundation about you that positive customer of that retention motions is starts strong retention, to retention. half of XXXX. in revenue then Yes, retention similar saw real since the story told QX. QX really were And like net with retention we've driving last the really the trends story both a that where quarter, dollar diversity would you

Operator

you. Thank

Wong next from from Securities. Our is question Ken Guggenheim

line Your open. is

Ken Wong

this and the as should the CMS? HubSpot into we on franchise just potentially the or Great. board of across that funnel Building a new open me view question, as basic skew Thanks hub, over get question about to well. this so way then for congrats kind to adopt my using to kind laggards just taking that intended CMS Stan's there of the from on the thinking is

Dharmesh Shah

great a Ken, question. That's thank you.

So in that business. we step about taking a we're CMS back, at and think why

like I the is like, reason that, you it's other ask content have overall from which So that the unique. to else picking system one hard. There it's their CMS. leading CMS are if okay, It's up well, legit part build kind that of that platform of trombone, CRM is things think everything HubSpot make a platforms is offering, management because has really why of no a as hard it's different

in official the you them no By to of of to thing trombone. a It's need way, You a of you that but anything sliding difficult. have you're complete there's always case like have band, term or that. musical thought an reason, kind kind thing. find keys wondering, use I but what you the marching if think That's the

And so you it. need

CRM the that a the it's the a It's up CMS. itself a And website putting into about window bringing the you full in about making a want backend there. and CRM about need customer website not data, forging into the connection. If reason you platform, just is

really So it. about excited we're

this step that it's of why we the terms we launch is web were starter often to. getting the a correctly. In here, first digital customers want We first think what experience in that take alluding exactly journey of kind you would up to step basically

CRM using want possibly the as onto us kind CMS them on there. it and from to helps can. many bring as grow kind So even platform people starts we And of the platform, we of gets from HubSpot

the open. about excited super we're opportunity So to

Operator

Thank you.

Our is from next question Wolfe Research. Alex Zukin from

Your open. line is

Alex Zukin

to guys. see think see you to you you, half either – the Brian, last back, second and we and as Yamini what world, out great in kind compare you. for half of with and in behaviors, first if the customer you with new second what in you to post the work what you in saw that first for the really contrast look just COVID half into us? Yamini, about can a year of the Thanks Maybe go. sad first what you and to the Well, you have excited you see pipeline question saw

Brian Halligan

Chairman long, HubSpot super so. time, Okay, not to and I'll that. I'm in be start and long a be with hopefully going active and I'm partnering Yamini anywhere, guide I active and going actually very and Executive for going strategy to helping

rid easily getting friend. that my not of You're me

Yamini Rangan

active, echo us. always would like Brian's I and super sounding always us that inspiring

good. in full pretty that's him force. We're have So to back glad

first environment of quarter. Our and last what half? saw in So question half similar terms comparing in to second demand we Alex, demand the solid, environment is

resonating back, Brian seeds. stepped And to our very you unique sowing in if value the a very, relative I really is market. say have about talked that competition. strong is Now, proposition we product

but only drive product done fit, seeing to enough I are of helping have in those the that go investments past strong few just of think that we two results. payoff, really us market product all a combination financial years market we've have fit. also we not and really And the

terms not first here say digital stay. back here. that trends from Both In ready. the those are is We're to pipeline, of going of digital and I'd

that's good of We quarter, did forward their the that from you're about think feeling do. to the the was very a global culture. it seeing delivering going I'm in customers seeing wanted focused I They're in choice. and We pipeline. are sales websites And we're We and our half half. actually employees. to do customer the at full modernizing clearly with to employee a was that, base And beginning customer all to on marketing, and right rest. about looking thing CRM experience important We that to care now platform our gave a second the rest, kind focus July, to service. connected really from week And very in second a the interest come what entire – and about And of we of care back we them a recharge half. second

Operator

Thank you.

Drew is from next Citigroup. Our Foster from question

open. is line Your

Drew Foster

Great Brian questions. congrats, their on hear everyone new thanks guys, doing the Hey to else and for well, taking roles. you're

reflect Is stickiness been there. importance biggest products customers are role more what share broadly said an greater years, can retention one period, we about And get an Maybe of just digital more a going give away, protracted the and the you rising two channels, update update category or the Given of on of today? kind sort strategic of drivers maybe not just stands as on general in touch and or that's where net a of two over more it using kind there? things everything the playing importance? logo Thanks. three

Yamini Rangan

would of the is Yes. very around retention, retention, We'll is and in a think general the of the and logo improvements but but truth points and and sort for quarter you the upcoming the more same of elementary, what that as give second day, stayed of at we're seeing this we new first year, kind strong level elevated I at sounds that how detail of probably I it retention not really are products leads is of dollar enjoying are healthy baseline specific but customers and levels. sort turns as take maybe retention result retention in the half is XXXX out about more. as just our using lot higher talk of it analyst the core customer back that show to to And is a which away we couple internally through think it that a

Operator

Thank you.

from Tillman Our next question is Securities. Terry from Truist

Your line is open.

Terry Tillman

last I and you. these you're good said, think Thank stay chapter, but the going next luck Brian to and think one congrats of you forward. calls And on on going questions, the I

to that's I'm case. going base my So –

the well. of my as selling relates times echoed in on question couple Yamini you installed of strength. – you So I was next it to congrats we'll It's see guess, and fall. just good to back terms have a base

is, is getting mistaking. where this Thank about more if that was structural not curious dial – And the it should this and the more future in by there’s has think from selling maybe where to more investments? a on done base you. basis some see we just you’ve a a more each I lot of of quarter? more Kate, you’re things turn installed shift What been I’m internally programmatic I’m mentioned and/or kind Yamini there of

Yamini Rangan

for it. you wishes, the thank I really Terry, appreciate

now for hubs, a products so to there’s have install our have them And customers much past think in the of has I Operations additions product that like existing I quarters, think in of number couple better. And that right? and a Hub, have more of adopt. base, improved adopt, the on gotten they lot can more lot terms introduced the a we product we

them hub one on they of naturally a are and customers of our then hubs the single interface when single model, So that pulls seamless see data in. value other

that talked investments the ones the So first about. I’ve probably product are

that team, of is install the that’s been it our have go-to-market helps we from sales with heavily part terms more more success part And that certainly base. a and connect invested in second us of team, the think dots of working closely it. perspective certainly I customer in our

forward, lot acquire we continue Now strong to because the to we value We a would the deliver propositions new I’d have that sell customers into balanced say, a install of of going we and want base. continue to – approach. we

both balance of of these a quarters. across future you’ll So our see

Operator

Thank you.

Our DJ is from next Canaccord. from Hynes question

Your open. line is

DJ Hynes

new roles on everyone congrats and Hey the the guys, with team. the continued success

already you’re Hub. sits Just somebody sales, it already on think of is sell about and or Is and that the those HubSpot? when efforts? whether that I’m to it’s Operations to they’re trying just and the you’re somebody most with familiar else in you top a cross organization the somebody marketing go-to-market know, question in talking selling that’s ease buyer of cases on with

Yamini Rangan

Hub That’s – is revenue persona. a let’s a will I buyer great question, DJ. fantastic question. That’s Operations the for say of

heroes, them CRM part the back flexibility unsung really really these better helps the in the and Operations of of It purchase to them you that deliver clean teams customers on functions. struggle marketing, teams these and running sometimes critical they customers which to the and is and stack, our traditionally sales role operations head customers into for of it insights Hubs, the a they’re a couple our couple with. providing and are step centers front it’s the have of a power decades That’s nerve we’re They’re play, in automate Now and single up operations customer I go-to-market source tech the all the if CRM the data, revenue but VP success. spent persona of the been of really the the and a processes things. providing helps and our now our always truth And connect customers office. of of to about customers challenges their it they’ve involved ones the three really helps

a successful. really persona be of very, And see critical lot And that it’s very so helping we traction.

is partners programmable fire, feedback mentioned prepared we lead seeing routing. as remarks, good really well from our traction. positive that very are as I of automation use on customers in and As Clean my been case has

You is able rep routing, and lead want CRM, to rep to all on able rep capacity, your vacation, rep figure but advance automate information use are out of sabbatical the all now to also to processes. take the on data from that be you of is do seniority,

CRM processes suite. And so Operations Hub our provides supercharges automates and flexibility,

Operator

Thank you.

from James. Our Peterson next Raymond question from is Brian

Your line is open.

Brian Peterson

Thanks you and to and glad And hear for taking your hear new congrats great the role, to in question. voice your Brian it’s Yamini roles. the

model. I’m much between just different were maybe at breadth more the I in of looking does how that to me, impacting you. and coming vendors customer lot a higher about I’m and something the maybe if that areas we – win Thank think for the go-to-market level So it’s think curious, do you a rates? would curious, in consolidate are that’s question up I that new simplification pace post-COVID conversations ads, maybe a about think digital of looking of people come functionality platform how net guess, Is up?

Yamini Rangan

maybe then that in. address will I and or Brian, Yes. jump have Dharmesh Kate

a providing that using pandemic a something what this I an And be I through could front suite. Like entire digitize point having the invest to suite. definitely coming happen. You’re about they’re a spreadsheet, think could they’re looking different. could in think in connected bunch have of to we It solution beginning to office CRM an And therefore, The or customers, whole the point one, enabling deeply pretty experience. all part them. one And customer legacy through And they’re with motions of continue at we’ll CRM see that’s resonates system. And entire be need right. if thing, very be exactly my they’re you our and starting starting point they solutions. greenfield, like

Now the very CRM suite powerful. is like

product. of higher. better in our terms can is product. the of CRM the it’s they things in higher we product of Therefore, the the entire One we new hands And customers little we quality how on the improve of platform. even existing of now can feedback usage. see us works Therefore, There for suite get the drive that get customers, or power much is that flywheel product you the a nice when

And what lot goodness that’s we’re in customers. of so seeing trends there’s and a of certainly from our terms

Dharmesh Shah

Yes. complicated be I transformation often they because make want systems. it’s kind I’ll really expect as see intentions, have would paved path IT to transformation digital that One the multiple that all that but with of implementation, you but database is first, terrible add thing digital digital companies, XXXX to is and to so good

it really is compelling as proposition experience, simplify to we scale is one platform, companies one with one very proposition of value with of all kind this they call database, mid-market most system, resonating bring, can are HubSpot that one dealing complexity one into well. which can bring help operating that, we together So that. we a company value It’s these because and the

Operator

you. Thank

Our from from Parker is Lane Stifel. next question

line Your open. is

Parker Lane

Yes. Hi. Thanks for taking my question.

using last You different if at all I wondering your making towards initial attaching products? you the could years customers that the you’re Thanks. it solutions tiers. really to all starter level, and did the just lot the the the making of adoption weighted Is the door additions starter customers point HubSpot and seeing two about few Are just those multiple at across a talk in tremendous to tools. job traction of platform the enterprise of them was the around applicable sizes multi-product a mostly of as you so getting well new are lab? as enterprise into

Kate Bueker

pass start our talked context. Yamini a this color for trajectory that customers all more or quarters, been of for have easy buy. tiers a the the growth $XX step we who simple happened see adoption, the it number on the our this Maybe to of sort up function spring bit to really last with so on a of introduced some a Growth Yes. from of the of has when now. I’ll in across We Starter multiproduct and did number about starter. enterprise and for not to price And flection of years Suite bit a point, We’ve two more little numbers in products steady use

lot so of HubSpot level at that just uptake the full starter products. a And of of set see we

that at customers my I remarks, than customers prepared of products. we’re now shared in are XX-XX As look XX% you at who using are when adopting probably our HubSpot multiple HubSpot And one more new product.

Yamini Rangan

Yes.

commentary add provided. to that the Kate think to I

we step CRM. the data resources back, hub crafted It to think all is which we of end lot through really a for the within together on is the acquisitions. together use And view of biggest crafted resonating customers, I products, step developers, And not single customers cobbled the customer, a one customer a if thought if a for you simple back and therefore, great a having that’s spend And a important think time And and that’s of I these is market. think they’re to together. putting lot integrations. experience is on time very our complex easy that’s very something what single focus not experience, what yes, approach is of their you challenge stacks not the They and lot that customer interface to and about tech cobbled spending they’re model, that. spend there. us, take multi of is for liked on provide

Operator

Thank you.

Ryan is question MacDonald from Our Needham from next Company. and

is line Your open.

Alex Narum

this Alex is little additional on Narum Ryan. information the strength I So just Congratulations to quarter. get this hoping international. strong in a was on for the bit on of

Yamini Rangan

question. as Ryan, thank growth, international. for in you as well We consistent that both America, saw Yes. very North

growing has been well. mentioned, international As we really

a up last year-over-year, think year. I points from few

If really which is looking earlier in the opportunity there international first, are bigger are in you being of for step back and market digital digital stages, A lot on even transformation international, at digital us. the customers an and some earlier there’s means ready stage. markets

the in that second resources facing customer in been of management, even of brand. investments And the content those off. investing lot a for localization, is terms we’ve and are of in markets I steadily part paying international think from product lead terms

CAC Our really markets. LTV to these is in solid

continue we’ll in so invest to markets. international And

market exciting and really the think well part it America that too. big that’s is doing is a of North I

all we operate pleased seeing that. think consistent the that across markets I in, so balanced we’re about very of growth very

Operator

Thank you.

Siti from Our Mizuho. next from question is Panigrahi

Your line is open.

Matt Diamond

Your Siti. the the It’s not question something for I’m in some that curious been to for of Diamond quarter be for there’s catalyzed me. linearity certainly Is that suggests asked everybody. if bookings in quick might’ve may the second incremental Matt anything have that tone directly? happened quarter? One Hi, on conviction this called there that out half. more

Kate Bueker

would would I is linearity there there’s that I nothing No, – nothing around booking. share

Operator

Thank you.

is question Wells Turrin Fargo. Michael next from Our from

Your line open. is

Michael Turrin

congrats same. to Yamini, keep I afternoon. it’s I on the the whole to music but Good classical. planning than the go earnings I Thanks. pleasant there. Hey music sleep, regardless mean, hope with the for promotion. calls much the you’re more jam

certainly do for appreciate questions that average just metrics year. it. and but rest there’ve on some mean, can comments on per the I try So the certainly customer I revenue the been stands out as it, hold of expectations

that? just how other year? also being then over just this hubs back the I’m much seen of we’ve there. And Thank strength you. So just you’re what helping the strong we that’s of wondering and can past some new the side the if doing out go customer tied just with bundling ad to

Yamini Rangan

the trends. base even terms if of We’ve and lot those Starter strong more. got And selling a strong like theme. at what in the nicely Yes. out I you what trends, was it’s a And that result, variability about you’re it the in frankly, past. install the talked customer in the ASRPC. as of is quarter Professional I this metrics ASRPC, year-over-year. is is And saw strip and particular, seeing ASRPC looked Enterprise up underlying this you’ve in additions mean, think KPI quarter-over-quarter we in There up

metrics. don’t guide frankly, don’t we our manage And that’s how so, we you we And business. to the guide because know, as KPI not

remarks around saw in the single digits. come And net that high ASRPC and an in for the growth with around so, I shared QX half the in see prepared expectations. would in commentary think should year those customer back back half ads what and around the We we of that some we

Operator

Thank you.

Capital Markets. from Turits question Michael is next Our from KeyBanc

Your line open. is

Michael Turits

and it’s a mentioned Congrats is for on guys. just new a Enterprise new customers, one briefly, Hey bit customers ago thing and obviously driven for the Pro in Kate, the impressive. pricing our particular see Pro to anything strength Brian add position customers strengthen that while and that to new Yamini. to the to starter in – and you then a a in

So get how’d you that?

Kate Bueker

customer had well. strong in all throughout in Enterprise This QX is additions QX. new quarter about Yes. really it talked Thanks. – about the QX, as for not and for new it’s has and And for we reasons talked of I a We the thing and call. Pro last that QX Yamini think

Operator

you. Thank

Sandler. is question Brent Bracelin Piper from next Our from

Your line open. is

Brent Bracelin

here. promo. also driver to team broader your back Thank a great you. here. in wanted to And We’ve not the Yamini, always with four trained on the years, think here durability hear congrats plan hear Again to not great to been to you’re active last Brian, to but of go ASRPC to the remain healthy, growth the growth. as of

four the growth last fact, in slight In years. drag the a been it’s over

to early it My like where lever it’s ASRPC feel weigh in here. easy as growth? and Or I could expansion to revenue new an growth incremental entering new some well. This as here both a five-year to, strong a incremental X%, nice is it really too the question could that comparisons emerged are a a business. are level high we to lever be we where incremental on that? expansion, growth have quarter this at customer does this get you period we period additions see But to entering is, as new

Yamini Rangan

of and tell three ASRPC. customer is we expansion seen quarters nice and have you quarter-over-quarter I over about additions this last would is talking Yes. I guess, we’ve the that what really been

year-over-year of I well. as real milestone marks seeing a we’re think this quarter where little a increase a different on a basis bit

if I come at think and And and be new you end, we going what to ASRPC some continue we that’s ads. the to introduce declared customer quarter products. that to innovate high here, would low of something end, I quarter will as I’m surprised, the at see in out is tell expect that we going what new you innovate variability

this back I we we sort at our the a But for think where think this a of long-term shared point. are so half expectations don’t I And declare point of trend year. I at would

Operator

you. Thank

Kirk from from Our Evercore. next question is Materne

Your line is open.

Kirk Materne

and customers Thanks partner of Are that side Pro very seeing how do the Enterprise much. platform maybe for more about you’re about evolution start And of at I’ll of good of in Yamini. echo the have the and a certain you was to might the that sort the evolution Brian of talking you traction. wondering to trying needs. vertical business features expertise these high ecosystem? there as about I the of how partner terms have partners about of in sort on you more partners trends? guess, level, Yamini such Or things congrats both you’re just where just leave think on focusing bespoke just you your maybe thinking thinking to various I seeing think more are Thanks. develop? your areas

Yamini Rangan

Sure.

help building us So multiple the this there’s different ecosystem Dharmesh. software it of basically is the app the there’s HubSpot and which there’s then service HubSpot. companies and there bring the platform where ecosystems, extending the to parts of solutions where app actually we think kind markets. ecosystem, and When And partner integrations is

side. to Yamini I’ll speak partner solutions the So let

get, customer get. we the the the we more a and And flywheel. great awesome. HubSpot the of love kind more companies platform, it number seen applications, thing seen between really of our And retention we users on extending building their the problem of apps On and That’s is solve. more APIs. the more about the apps and customers The those rates. app their we correlation that we’ve that strong We’ve more using have, we traction, more and spins of

kind kind other each fuel flywheel. of of So and the those feed things

app the itself platform So going is really well.

program. solutions to speak Now of let part the Yamini the

Yamini Rangan

Yes.

a think app really I that’s the good commentary side. on

And with implementations, go diversifying to Earlier we look, think of and partners our I we we continuing we year solution we on you. Partner want integrations, to and to terms our went this at Kickoff, side, focused on more are much CRM are entire ecosystem partner complex partners said, implementations. the in this. are really there scale our

ecosystem, been So we will with scale for our And partner sell work incentives. our improved for customers. and solutions enable good with therefore in more of for good service investments it’s good the partners has continue that’s strategy and to which HubSpot. we’ll terms partners partners, means that’s the And our and with customers on our to partners

and investing on they been us services launches to continue when in enabling through go partners, can and do to heavily we partners. market so we’ll scaling that’s our work have with invest We the product pretty to beginning

scaling definitely and we part a so as play role. of see critical them they HubSpot And

Operator

call Executive to I no Chairman are remarks. the turn There will now Halligan, questions. back further for over closing Brian

Brian Halligan

Thanks everyone the at see virtual Analyst for look to joining Day. and you forward

Operator

Thank you, concludes gentlemen, today’s for wonderful Ladies Thank day. presenters. have your and this and a you conference. participation

may You disconnect. all

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