Tidemark Customer Presentation:

PAMELA (PETERSON) MARTINEZ, DIRECTOR, FP&A @ HubSpotMATTHEW ANTONELL, SR. FINANCIAL ANALYST, FP&A @ HubSpot

An inbound marketing and

sales SaaS platform

Focused on the mid-market

>15,000 customers

Cambridge, Dublin, Sydney,

Singapore> 800 employees Trading on the

NYSE as $HUBS

5

Continued Momentum Since IPOGROWTH DRIVERS: Domestic | International | Upsell

Customer

REVENUE CUSTOMERS ASRPC

Key Financial Metrics

Key financial metrics 2011 2012 2013 2014 Q1’15

Gross Margin 61% 70% 65% 70% 73%

% of revenue

R&D 27% 19% 18% 17% 15%

S&M 82% 66% 67% 63% 57%

G&A 21% 16% 19% 18% 17%

Operating (Loss) / Income

%(69%) (31%) (39%) (28%) (16%)

All percentages for historical and future periods exclude expenses associated with stock based compensation and amortization of acquired intangibles. 23

Finance @ HubSpot

Accounting Order Management Payroll FP&A Investor

Relations

FP&A Responsibilities

Financial Forecasting & Planning

Financial Reporting of Actual Results

Business Partnership with Functional Leaders

1 2

3 4SaaS Metric Tracking and Reporting

FP&A @ HubSpot

Corporate FP&A

Functional FP&A

Total of 5 employees supporting and

business planning for Sales, Marketing, R&D, Services and Support

Team of 3 employees:• Managing consolidated

forecasting, planning and reporting processes

• Managing Tidemark• Supporting G&A

• Communication with Accounting and IR

HubSpot’s Tidemark Implementation

Consolidating the Monthly P&L Reforecast Process

• Unstructured process, ~7-8 team members making inputs

• New Process Cycle each month w/ uploads from NetSuite & Workday

• Workforce Planning: Headcount, Salaries, Wages, Bonuses & Commissions forecasting

• Users have access to appropriate slices (dept / cost centers) for Workforce Planning

• Revenue Forecast: Subscription, Services & Other (forecast in excel, pasted into TM)

• Non-OTE Expense Forecast: Manual input for T&E, Prof Fees, Rent & Depreciation, etc.

• Rolls-up to a Functional (SEC) P&L and Account P&L

• Collaboration / Annotations to align team on certain key assumptions or remember when/where a change was made

1

HubSpot’s Tidemark Implementation

Performing the Annual Planning Process (P&L)

• Similar unstructured process as reforecast

• ~6-quarter rolling forecast mid-month of every quarter. May & August roll out to the next full fiscal year as a “Business as Usual” case

• Kick-off formal Planning Process in Sept/Oct, with deeper inputs from functional leads (“Tuna Season”)

• Iterate each month through Jan, then plan finalized & locked in Tidemark as ‘2015 Plan’

• Execute budget transfers throughout year using Top-Side functionality

• Comparison point for each month’s Reforecast & Actual Results

2

HubSpot’s Tidemark Implementation

Documenting the Variance-to-Forecast and Variance-to-Plan Process

• Monthly ‘BVA’ Meeting with FP&A, Accounting, CFO

• Upload prelim Actual results from NetSuite, compare B/(W) to PFCST and PLAN

• Team inputs in-line variance explanations key in assisting with the prep for meeting

• Post-meeting: final close changes by Accounting, New Process Cycle is opened (NetSuite actuals loaded, Headcount actuals input, Workday upload completed)

3

Current ROI from Tidemark

Consolidation(Off Excel!!)

Version Control & Record Keeping

Helped to formalize FP&A processes

1 2

3

Workforce Planning

Headcount Summary

Enter Revenue and Cost of Revenue

Enter Non-OTE Expenses

Summary P&L

Functional P&L

Monthly BVA Variance Panel

Thoughts on the Future / How to Better Leverage Tidemark

No one system of record for all financial / install base / key metrics related data @ HubSpot

• Would require a lot more cross functional buy-in & implementation to make Tidemark this system

• Hard to use playbooks, storylines, sharing functionality without uploading all these other data

Thoughts on the Future / How to Better Leverage Tidemark

Short-Term:1. Further automate forecasting process to

more fully move off excel• Local Currency

• Payroll Tax Calcs

• Automate Allocations

• Benefits by person calcs

• Subscription Revenue (Subscrip eCommerce)

• Leverage excel add-in to link/refresh

2. Enhance existing panels with all the cuts, views, relative metrics required by our team and functional leaders

3. Calculate basic SaaS metrics in Tidemark (customer counts, ASRPC, LTV:CAC)• Need to upload a few additional metrics each

month (ending customers, new customers, New ARPU and Retention/Churn) to get this output

Longer-Term / Futures:

1. Load install base /customer data (via SFDC) to calc other metrics & reporting

2. Determine model to share with functional leaders direct from Tidemark to streamline the monthly/quarterly budget review process

3. Long-term driver-based P&L forecasting

4. Capex/Depreciation forecasting

5. Load Cash Flow & Balance Sheet actuals…and eventually forecast them here

QUESTIONS?

21 TIDEMARK ADVISORY BOARD