HUBS Q2 2021 Earnings

Call Details

• Call Title: HubSpot Q2 2021 Earnings Call
• Date: August 4, 2021 at 8:30 PM UTC
• Management Team:
  • Chuck MacGlashing (Head of Investor Relations)
  • Brian Halligan (Co-founder and Executive Chairman)
  • Dharmesh Shah (Co-founder and CTO)
  • Yamini Rangan (Chief Customer Officer and Chief Executive Officer)
  • Kate Bueker (Chief Financial Officer)

Call Summary

Financial Performance

• Total Q2 revenue grew 47% year over year in constant currency and 53% as reported.
• Subscription revenue grew 53% year over year on an as reported basis, while services and other revenue increased 44% as reported.
• Total customers increased to over 121,000, representing 40% year-over-year growth and net customer additions of over 7,100 in the quarter.
• Average subscription revenue per customer grew 8% year over year to approximately $10,200.
• Deferred revenue was $362 million at the end of June, representing a 50% year-over-year increase.
• Calculated billings were $334 million, growing 60% year over year in constant currency and 65% as reported.
• Second quarter non-GAAP gross margin was 81% and non-GAAP operating margin was 9% in Q2.
• Net income for Q2 was $22 million or $0.43 per diluted share on a GAAP basis.

ARR / Recurring Revenue Growth

• Company stated it has passed $1.0B in ARR as a multi-year milestone for the business.
• Subscription revenue growth of 53% drove recurring revenue durability during the quarter.
• Deferred revenue balance of $362 million provides visibility into future recognized revenue streams.
• Calculated billings growth of 60% in constant currency implies acceleration in contracted recurring value.
• Multi-product adoption reached 58% of customers, which supports cross-sell and ARR expansion potential.
• CFO expects ASRPC to grow in the high single digits in Q3 and Q4, supporting ARR per-customer expansion in the back half of the year.