HubSpot, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the HubSpot Q3 2020 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Chuck McGlashan, Head of Investor Relations Thank you. Please go ahead.

Thanks, Operator. Good afternoon and welcome to HubSpot's third quarter 2020 earnings conference call. Today, we'll be discussing the results announced in the press release that was issued after the market closed. With me on the call this afternoon is Brian Halligan, our Chief Executive Officer and Chairman, and Kate Bucher, our Chief Financial Officer. Before we start, I'd like to draw your attention to the Safe Harbor Statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of Section 27A of the Securities Exchange Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact are forward-looking statements. including those regarding management's expectations of future financial and operational performance and operational expenditures, expected growth, and business outlook, including our financial guidance for the fourth fiscal quarter and full year 2020. Forward-looking statements reflect our views only as of today and, except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please refer to the cautionary language in today's press release in our Form 10-Q, which will be filed with the SEC this afternoon for discussion of the risks and uncertainties that could cause actual results to differ materially from expectations. During the course of today's call, we'll refer to certain non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences Between such measures can be found within our third quarter 2020 earnings press release in the Investor Relations section of our website. Now, it's my pleasure to turn over the call to HubSpot CEO and Chairman, Brian Halligan.

Thanks, Chuck. Good afternoon, folks. Thank you for joining us today. Well, none of us could have foreseen the difficult path this year would take as we enter the final quarter of 2020. I'm grateful for our customers, partners, and employees who have grown through it with us. Now, despite this challenging environment, HubSpot has grown very nicely. Demand trends have continued to strengthen in the third quarter as more companies digitize their end-to-end customer experience and build modern flywheels. Revenue growth was 32% in Q3 and non-GAAP operating margin was 7%. We had a record total customer growth at 39% year-over-year, surpassing 95,000, while multi-product adoption has also continued to grow nicely, representing over 45,000 customers. These customers have also become more embedded in the HubSpot ecosystem as we've reached nearly 2 million cumulative platform integrations. The year is not over, but I believe the growth we've seen in the third quarter is both a story of digital transformation tailwind combined with excellent execution by our team to build and deliver a terrific product for our customers. A big focus for 2020 has been on building a CRM platform that couples an increasingly powerful enterprise backend with an intuitive consumer-grade frontend. This is a rare combination in the software industry and is unique to us in the CRM industry. That rare combination is a result of a few things. First, We handcrafted HubSpot on a set of internal primary colors, reporting, content, messaging, data, and automation. These primary colors are combined to create our hubs, which all work the same intuitive way. This is in contrast to traditional CRMs, which are cobbled together through acquisition. Second, we have a large multi-year investment in user research and design that gives HubSpot that consumer-like feel. Third, our entire company is laser focused on delighting our customers. Culturally, over the last few years, we've moved from a funnel mindset to a flywheel mindset where our growth rate is heavily influenced by the values our customers are getting from our offerings. Now, the really exciting thing that happened since we spoke last was the release of Sales Hub Enterprise, which leverages these primary colors as custom objects, as proposal, as advanced sales automation, and as accounting integrations like NetSuite, QuickBooks, and Xero to our CRM. This was a huge release for our customers and partners. In particular, the addition of custom objects changes the game for a lot of our customers. Custom objects was the very large investment for us that took well over a year to develop. Prior to this release, our customers had to fit their business model into our relatively rigid object model. Now our customers can fit our object model around their business model. This was a big blocker for us with scale businesses that we've knocked down. One customer, LegalZoom, an early Sales Hub Enterprise adopter, praised this intersection of power and ease we provide by saying, we have had 100% user adoption and couldn't be happier. Now, it's still early days, but we've had a strong start with Sales Hub Enterprise net new ARR hitting a record high in October. There's still a lot of uncertainty in the world today, so it's hard to predict the future. But one thing I'm certain of is our approach to building products that delight customers is going to keep paying off. I want to thank you for your time so far today. We're proud of the momentum we saw in Q3 and remain optimistic and focused on closing out the year strong. Now I'll hand things over to Kate to take you through our Q3 financial and operating results in more detail.