Nov 10, 2025 4:27 PM Eastern Standard Time HubSpot to Present at the Wells Fargo Technology Conference Share CAMBRIDGE, Mass.--(BUSINESS WIRE)--HubSpot, Inc., the customer platform for scaling businesses, announced today that Yamini Rangan, the Company's Chief Executive Officer, is scheduled to present at the Wells Fargo Technology Conference in Rancho Palos Verdes, California on Wednesday, November 19, 2025 at 4:30 p.m. ET. All interested parties can access the webcast live on the Company's investor relati ...

HubSpot Analyst Day Summary Company Overview - **Company**: HubSpot - **Event**: Analyst Day at Inbound, San Francisco Key Industry Insights - **AI Transformation**: HubSpot is positioning itself as an AI-powered customer platform, emphasizing the shift from delivering software to delivering work, which aligns with evolving customer expectations in the AI era [12][15][16]. - **Market Dynamics**: The industry is experiencing rapid changes, with customers expecting more integrated solutions that combine various functionalities [12][15]. Core Company Strategies - **AI Integration**: HubSpot is transforming its platform to leverage AI, focusing on three interconnected layers: context, action, and orchestration [20][30]. - **Customer Context**: HubSpot's unique advantage lies in its rich customer context, which combines structured and unstructured data to enhance AI capabilities [41][37]. - **Product Development**: The company is launching new products and features, including Breeze Studio and various AI agents, to enhance customer experience and operational efficiency [30][26]. Financial Performance - **Revenue Growth**: HubSpot's revenue has grown at a compound annual growth rate (CAGR) of 24% since February 2021, with a projected revenue of $3.1 billion for 2025, representing a 17% growth in constant currency [86]. - **Customer Base**: The company reported nearly 270,000 paying customers, reflecting an 18% year-over-year growth [87]. - **Profitability**: Non-GAAP operating profit is expected to reach $570 million in 2025, indicating a significant margin expansion since 2021 [87]. Product and Pricing Strategy - **Hybrid Pricing Model**: HubSpot is evolving its pricing strategy to include persona seats, core seats, and credits, making it easier for customers to adopt and scale their usage [56][62]. - **Core Seat Value**: The core seat, introduced in March 2024, has surpassed $100 million in ARR, providing significant value through enhanced AI and data capabilities [105]. - **Customer Adoption**: The company is seeing strong adoption of its AI features, with over 5,000 customers using the customer agent, achieving a resolution rate of 65% [107]. Market Positioning - **Upmarket Strategy**: HubSpot is focusing on delivering value to larger customers, with a significant increase in multi-hub deals and large deal sizes [75][90]. - **Downmarket Strategy**: The company is also targeting smaller customers with a freemium model, which has led to a 50% growth in free-to-starter conversions [76][93]. Customer Testimonials - Customers highlighted HubSpot's ease of use, integration capabilities, and the value of its AI tools in enhancing operational efficiency [49][50]. Conclusion - HubSpot is well-positioned to lead in the AI era, with a strong focus on customer context, innovative product offerings, and a robust financial outlook. The company's hybrid monetization strategy and commitment to delivering value are expected to drive durable growth in the coming years [82][84].

Financial Data and Key Metrics Changes - Q2 revenue grew 18% year over year in constant currency and 19% on an as-reported basis, with subscription revenue increasing by 19% year over year [28][29] - Q2 operating margin was 17%, flat compared to the previous year and up three points sequentially [31] - Net income for Q2 was $117 million, or $2.19 per fully diluted share [31] - Free cash flow was $116 million, representing 15% of revenue in Q2 [31] Business Line Data and Key Metrics Changes - Total customers grew to 268,000 globally, with over 9,700 net customer additions in Q2 [29] - Sales Hub seat upgrades increased by 71% year over year, while Service Hub seat upgrades rose by 110% year over year [9] - 61% of new Pro Plus customers landed with multiple hubs, and 42% of the installed base by ARR now uses all three core hubs [8] Market Data and Key Metrics Changes - Domestic revenue grew 18% year over year, while international revenue growth was 19% in constant currency and 21% as reported, representing 48% of total revenue [29] - The company saw a significant increase in leads from diversified channels, with YouTube leads up 96% year over year and newsletter leads growing by 50% [16][17] Company Strategy and Development Direction - The company is focusing on AI integration across its platform to enhance customer experience and operational efficiency [20][25] - HubSpot is adapting to changes in marketing dynamics, emphasizing the importance of content across various channels as traditional SEO becomes less effective [100][101] - The strategy includes a hybrid pricing model that combines seat-based monetization with credits for AI-driven services [80][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment but expressed confidence in their proven playbook to navigate these conditions [33] - The company expects net revenue retention to improve due to faster seat upgrades and anticipates strong customer additions in Q3 and Q4 [29][90] - Management highlighted the importance of adapting to AI trends and the evolving landscape of customer engagement [42][106] Other Important Information - The company launched AI feedback summaries and AI ticket sentiment features in Q2 to enhance service team efficiency [24] - HubSpot's cash and marketable securities totaled $1.9 billion at the end of June, including the impact of share repurchases [31] Q&A Session Summary Question: Changes in inbound marketing due to AI - Management noted significant shifts in buyer behavior, with organic search being disrupted and more customers asking questions of LLMs rather than traditional searches [38][39] Question: Core seats and customer personas - The core seat is seen as a growth lever, expanding opportunities beyond traditional sales and service roles to include admins and operations [50][51] Question: Engagement with agents - Customer agent usage has shown strong weekly engagement, with resolution rates consistently around 50% and significant ticket deflections [55] Question: Billings growth and revenue outlook - Management indicated that the gap between billings and revenue growth is due to larger deals and longer billing terms, which should normalize over the next few quarters [67] Question: AI monetization strategy - The company is focused on delivering value before monetizing AI features, with positive indicators for future monetization as customer adoption grows [72][80]

Financial Data and Key Metrics Changes - Q2 revenue grew 18% year over year in constant currency and 19% on an as-reported basis, with subscription revenue increasing by 19% year over year [27][28] - Operating margin for Q2 was 17%, flat compared to the previous year and up three points sequentially [31] - Net income for Q2 was $117 million, or $2.19 per fully diluted share [31] - Free cash flow was $116 million, representing 15% of revenue in Q2 [31] Business Line Data and Key Metrics Changes - Total customers grew to 268,000 globally, with over 9,700 net customer additions in Q2, reflecting an 18% year-over-year increase [27][28] - Sales Hub seat upgrades increased by 71% year over year, while Service Hub seat upgrades surged by 110% year over year [7][8] - 61% of new Pro Plus customers landed with multiple hubs, and 42% of the installed base by ARR now uses all three core hubs [6] Market Data and Key Metrics Changes - Domestic revenue grew 18% year over year, while international revenue growth was 19% in constant currency and 21% as reported, representing 48% of total revenue [28] - The company saw a significant increase in leads from diversified channels, with YouTube leads up 96% year over year and newsletter leads growing by 50% [14][15] Company Strategy and Development Direction - The company is focusing on AI integration across its platform to enhance customer experience and operational efficiency [18][24] - HubSpot is adapting to changes in marketing dynamics, particularly the decline in organic search traffic and the rise of AI-driven search [12][13] - The strategy includes diversifying lead generation channels and enhancing the value of the core platform through AI capabilities [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and innovation pace, despite a volatile macro environment [26][33] - The expectation for Q3 revenue is in the range of $785 million to $787 million, reflecting a 16% year-over-year increase in constant currency [33] - For the full year of 2025, total as-reported revenue is expected to be between $3.08 billion and $3.09 billion, up 17% year over year [34] Other Important Information - The company has launched AI features that are gaining traction, with over 4,000 customers adopting the customer agent [18][19] - The company is becoming an AI-first organization, with AI handling nearly half of support chats in Q2 [25] Q&A Session Summary Question: Changes in Inbound Marketing Due to AI - Management acknowledged significant shifts in inbound marketing due to AI, with organic search being disrupted and a need for companies to adapt their strategies [38][40] Question: Core Seats and Customer Personas - The core seat is seen as a growth lever, expanding opportunities for various customer personas beyond traditional sales and service roles [50][52] Question: Engagement with AI Agents - Early data shows strong engagement with AI agents, with high resolution rates and significant ticket deflections [56][57] Question: Billings Growth vs. Revenue Growth - Management noted that billings growth outpacing revenue growth is a positive indicator of business momentum, driven by larger deals and longer billing terms [70][72] Question: Customer Adoption of AI Agents - The company is seeing good adoption of AI agents, with predictable value leading to potential monetization in the future [78][79] Question: Marketing Hub Evolution - The Marketing Hub is evolving to help customers navigate changes in marketing dynamics, focusing on content distribution across various channels [108][110]