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 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 Annual Report on Form 10-K filed on February 16, 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 An Inbound Marketing & Sales SaaS Company 23,226 marketing customers, 90+ countries, 6 locations worldwide Cambridge, MA Portsmouth, NH Dublin, Ireland Sydney, Australia Singapore Tokyo, Japan 44% Y/Y 48% Y/Y $76.4 M 51% Y/Y $70.6 M 54% Y/Y $65.0 M 56% Y/Y $59.0 M 57% Y/Y 58% Y/Y $53.1 M 58% Y/Y $47.7 M 53% Y/Y $42.9 M 51% Y/Y $38.2 M $34.2 M $30.4 M Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Customers by Country Revenue 3

4 Why does exist? 4

5 Marketing has become an arms race for attention. 5

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

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 22% 25% 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 Large and Growing Global Addressable Opportunity Addition of Sales vertical increases TAM to ~45bn Business Vertical Sales Marketing $30bn $45bn Total Addressable Market -AMI Partners data, 2014 and HubSpot Estimates 23

24 The Inbound Community 19,000+ Registered Attendees Where the inbound movement grows every year 3,500+ Partners HubSpot provides training and support to our marketing agency partners, working together to sell our products. 37% more registered attendees than speakers; hundreds of hours of content 60,000+ Certifications HubSpot s one-stop-shop for free education on all things inbound 170,000+ Members Where the inbound movement grows the other 360 days of the year 49,000+ 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 Zapier s Fastest Growing Apps in 2016 (Marketing and CRM) CMS Critic Awards: #1 CRM GetApp s 2016 Q3 report: Named #1 Marketing Automation Software, Content Marketing App 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 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 Three Year Results: Low organic traffic Poor web presence Multiple point solutions Blog Sites SEO 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 to be free cash flow positive for CY17 and to reach non-gaap operating profit break-even in 4Q17. 29

30 Financial Review 30

31 GROWTH DRIVERS: Domestic International Cross Sell Opportunity 58% Y/Y 53% Y/Y $34.2 M $38.2 M 57% Y/Y 58% Y/Y $47.7 M $42.9 M 56% Y/Y $53.1 M 54% Y/Y $59.0 M 51% Y/Y $65.0 M 48% Y/Y $70.6 M 44% Y/Y $76.4 M 35% Y/Y 13.6 K 35% Y/Y 14.7 K 15.8 K 36% Y/Y 35% Y/Y 16.9 K 33% Y/Y 18.1 K 31% Y/Y 29% Y/Y 19.3 K 20.4 K 28% Y/Y 29% Y/Y 23.2 K 21.7 K Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 REVENUE 16% Y/Y 15% Y/Y 14% Y/Y 15% Y/Y $10.6 K $10.1 K $9.5 K $9.7 K 17% Y/Y 18% Y/Y 18% Y/Y 16% Y/Y 13% Y/Y $12.0 K $12.3 K $12.6 K $11.1 K $11.5 K Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 MARKETING CUSTOMERS Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 ASRPC 31

32 Steady Progress in Gross and Operating Margin Trajectory 69% 70% 70% 72% 73% 75% 75% 75% 77% 78% 78% 79% ~670 basis points operating margin improvement* Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q % -26% -32% -21% -16% -13% -18% -8% -6% -4% -2% -6% 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. *This removes the impact of Inbound in

33 Framework for Growth and Profitability High Growth Growth Moderate Growth Revenue Growth >30% ~30% <30% Operating Margin % 1-2% increase per year 2-3% increase per year 3-4% increase per year Operating Cash Flow Revenue Growth 33

34 Key Financial Metrics Key Financial Metrics (% of Revenue) Q1 16 Q2 16 Q3 16 Q4 16 Gross Margin 70% 65% 70% 75% 78% 77% 78% 78% 79% R&D 19% 18% 17% 14% 14% 14% 14% 14% 14% S&M 66% 67% 63% 58% 55% 56% 55% 53% 56% G&A 16% 19% 18% 16% 14% 14% 13% 13% 15% Operating (Loss) / Income % (31%) (39%) (28%) (14%) (4%) (6%) (4%) (2%) (6%) *CFFO (11%) (26%) (11%) (0.2%) 7% 5% 13% 7% 3% 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. 34

35 Thank you from HubSpot! 35

36 GAAP to Non-GAAP Reconciliation HubSpot, Inc. GAAP to Non-GAAP Reconciliation Year Ended Three Months Ended March 31, 2016 Three Months Ended June 30, 2016 Three Months Ended September 30, 2016 Three Months Ended December 31, 2016 Cost of Revenue $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues Subscription* 9,689 19% 18,745 24% 23,655 20% 32,271 18% 41,182 15% 8,910 15% 9,985 15% 10,655 15% 11,632 15% Stock-based compensation (27) 0% (50) 0% (128) 0% (341) 0% (512) 0% (94) 0% (131) 0% (139) 0% (149) 0% Amortization of acquired intangibles (224) 0% (359) 0% (118) 0% (70) 0% (57) 0% (18) 0% (13) 0% (13) 0% (13) 0% Non-GAAP subscription* 9,438 18% 18,336 24% 23,409 20% 31,860 18% 40,613 15% 8,798 15% 9,841 15% 10,503 15% 11,470 15% $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues $ '000s % of Revenues Professional services and other 6,004 12% 8,759 11% 11,425 10% 15,652 9% 20,683 8% 5,061 9% 5,210 8% 5,157 7% 5,255 7% Stock-based compensation (100) 0% (211) 0% (498) 0% (1,216) -1% (1,640) -1% (324) -1% (477) -1% (438) -1% (402) -1% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP professional services and other 5,904 11% 8,548 11% 10,927 9% 14,436 8% 19,043 7% 4,737 8% 4,733 7% 4,719 7% 4,853 6% Gross Profit Gross Profit* 35,911 70% 50,130 65% 80,796 70% 134,020 74% 209,102 77% 44,989 76% 49,779 77% 54,777 78% 59,557 78% Stock-based compensation 127 0% 261 0% 626 1% 1,557 1% 2,152 1% 418 1% 608 1% 577 1% 551 1% Amortization of acquired intangibles 224 0% 359 0% 118 0% 70 0% 57 0% 18 0% 13 0% 13 0% 13 0% Non-GAAP gross profit* 36,262 70% 50,750 65% 81,540 70% 135,647 75% 211,311 78% 45,425 77% 50,400 78% 55,367 78% 60,121 79% Operating Expenses Research and development 10,585 21% 15,018 19% 25,638 22% 32,457 18% 45,997 17% 9,804 17% 11,278 17% 12,100 17% 12,815 17% Stock-based compensation (739) -1% (691) -1% (6,190) -5% (6,327) -3% (8,828) -3% (1,758) -3% (2,272) -3% (2,341) -3% (2,457) -3% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP research and development 9,846 19% 14,327 18% 19,448 17% 26,130 14% 37,169 14% 8,046 14% 9,006 14% 9,759 14% 10,358 14% Sales and marketing 34,949 68% 53,158 68% 78,809 68% 112,629 62% 162,647 60% 35,198 60% 39,140 60% 41,193 58% 47,116 62% Stock-based compensation (691) -1% (1,194) -2% (5,596) -5% (7,658) -4% (13,352) -5% (2,427) -4% (3,469) -5% (3,473) -5% (3,984) -5% Amortization of acquired intangibles - 0% - 0% (20) 0% (26) 0% (27) 0% (6) 0% (7) 0% (7) 0% (7) 0% Non-GAAP sales and marketing 34,258 66% 51,964 67% 73,193 63% 104,945 58% 149,268 55% 32,765 56% 35,664 55% 37,713 53% 43,125 56% General and administrative* 9,117 18% 16,204 21% 24,958 22% 35,408 19% 45,120 17% 9,848 17% 10,391 16% 11,435 16% 13,446 18% Stock-based compensation (958) -2% (1,318) -2% (3,946) -3% (5,766) -3% (8,343) -3% (1,628) -3% (2,126) -3% (2,304) -3% (2,282) -3% Amortization of acquired intangibles - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% - 0% Non-GAAP general and administrative* 8,159 16% 14,886 19% 21,012 18% 29,642 16% 36,777 14% 8,220 14% 8,265 13% 9,131 13% 11,164 15% Loss from Operations Loss from operations (18,740) -36% (34,250) -44% (48,609) -42% (46,474) -26% (44,662) -16% (9,861) -17% (11,030) -17% (9,951) -14% (13,820) -18% Stock-based compensation 2,515 5% 3,464 4% 16,358 14% 21,308 12% 32,675 12% 6,231 11% 8,475 13% 8,695 12% 9,274 12% Amortization of acquired intangibles 224 0% 359 0% 138 0% 96 0% 84 0% 24 0% 20 0% 20 0% 20 0% Non-GAAP loss from operations (16,001) -31% (30,427) -39% (32,113) -28% (25,070) -14% (11,903) -4% (3,606) -6% (2,535) -4% (1,236) -2% (4,526) -6% * 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. 36