HubSpot, Inc.

Hello and welcome to HubSpot Q1 2022 earnings call. My name is Elliot and I'll be coordinating your calls today. If you would like to register a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I would now like to hand over to our host, Chuck McGlashan, Head of Investor Relations at HubSpot. Please go ahead.

Thanks, Operator. Good afternoon and welcome to HubSpot's first quarter 2022 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 Yamini Rangan, our Chief Executive Officer, Dharmesh Shah, our co-founder and CTO, 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 is 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 second fiscal quarter and full year 2022. Forward-looking statements reflect our views only as of today, and as accepted 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 and our Form 10-Q, which will be filed with the SEC this afternoon, for a 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 first quarter 2022 earnings press release in the Investor Relations section of our website. Now, it's my pleasure to turn over the call to HubSpot's Chief Executive Officer, Yamini Rangan. Yamini?

Thank you, Chuck, and welcome, everyone. Thank you for joining us today as we review HubSpot's first quarter 2022 results. To start off, I first want to acknowledge the devastating situation in Ukraine. We're deeply saddened by the Russian invasion and our hearts go out to the people of Ukraine. With this war and ongoing pandemic and volatile markets, it's clear that we continue to live in a time of great uncertainty. 2022 is a year of focus and consistency at HubSpot for that exact reason. With that backdrop, now let's talk through HubSpot's first quarter results. HubSpot saw strong performance across the business with revenue growing 44% in constant currency year over year in the first quarter and total customers growing 26% year over year to more than 143,000 customers globally. These results prove that HubSpot continues to be mission critical for our customers. The pandemic accelerated digital transformation and fundamentally transformed the way companies work by themselves. Our customers are faced with hybrid work, decentralized teams, and disconnected systems, creating a significant growth challenge. As a result, they're realizing it's even more important to have a single, unified view of the customer in order to grow. That's why our customers continue to choose HubSpot. We provide a connected, easy to use platform that enables growth. In 2022, we're continuing to focus on helping our customers grow and executing on our clear growth strategy. We've previously shared the four strategic priorities guiding our path to becoming the number one CRM platform for scaling companies. Now, I want to walk you through the meaningful progress we made over the past quarter in each of those areas. Our first strategic priority is to deliver a world-class front office platform by investing in our anchor hubs and innovating with new emerging hubs. We recently crossed two important milestones on this front. First off, I'm thrilled to report that Marketing Hub surpassed $1 billion in annual recurring revenue in the first quarter. We've built a world-class marketing automation platform that's powerful and easy to use. And over the past couple of years, we've made significant investments to better serve all of our customer segments. We've enhanced the onboarding and user experience and introduced simple automation functionality to free and starter tiers. To serve the higher end of the market, we rolled out business units and advanced reporting capabilities that drive deeper insights. These investments have enabled Marketing Hub to achieve significant scale of 1 billion in ARR, and now we have the opportunity to replicate the success across all of our anchor hubs. HubSpot operates in markets with very large TAMs, and when we build world-class products that solve for our customers, like Marketing Hub, we see scale. I'm incredibly excited about this milestone and the opportunity ahead for HubSpot. The second milestone is that we recently relaunched Service Hub with expanded features and functionality. In today's hybrid world, customers expect a service experience that's human and exceptional. We built Service Hub to enable small-medium businesses to deliver that kind of exceptional service. Our Service Hub strategy is threefold. build a modern support center, deliver omnichannel support, and drive AI-powered automation and insights. As part of the relaunch in March, we introduced service-level agreements, a mobile help desk, and support workspace to fuel a modern support center. To power omnichannel support, we added customer portals, live chat, Facebook Messenger, and email functionality. And to provide our customers with richer automation and insights, we added feedback surveys and ticket automation. I'm also pleased to share that inbound calling is now generally available to service and sales hub customers as of this week. We believe this will empower our customers to provide an even more authentic service in real time. I'm excited by the early feedback we are hearing from our customers about the new features and the value that they're seeing from Service Hub. One such customer is Dake, a trusted name in metal working manufacturing since 1887. Their legacy customer service system was holding them back from providing a level of service that matched the quality of their products. So Dake started with Marketing Hub and Sales Hub. They saw a ton of value from HubSpot and expanded to Service Hub as a result. Dake now uses shared inboxes to gain visibility into customer interactions throughout the journey and leverages automation to streamline all of the manual tasks, all of which increases their productivity. With Service Hub, Dake has improved their customer satisfaction score by 13 points, up to 87%. This illustrates how a connected platform makes it possible to remove friction and deliver an incredible customer experience. Now let's talk about our second strategic priority, which is to strengthen our segmentation approach across both product and go-to-market. Our approach here is twofold. We want to drive volume at the lower end of the market with products that are easy to buy and easy to use, and we want to fuel value on the higher end with robust features for customers with sophisticated needs. In Q1, we made a few key investments here. On the lower end, we introduced simple automation for free and starter tiers, as I mentioned earlier. In addition to that, we are running experiments like pricing page optimization and self-guided demos. These investments are resulting in strong adoption of our starter suite. Within our upmarket segment, Both our direct sales team and partner channel are focused on driving multi-hub sales, and the investments we are making are beginning to pay off. We're seeing multi-hub adoption grow with 24% of our professional and enterprise customers now using three or more hubs. Looking ahead, we'll continue to focus on making HubSpot an easy choice for scaling businesses and driving multi-hub adoption upmarket. Our third strategic priority is to invest in payments and commerce. As more businesses become digital first, having a native payment solution is critical for SMBs to grow. On our last call, I shared that HubSpot payments had just become generally available in the U.S. for B2B customers. I'm pleased to share that we've already expanded the offering with the addition of recurring ACH functionality and payment dashboards and objects which are currently in beta. Payments Object is a top requested feature because it really enables customers to see commerce data in all of their CRM interactions, delivering an even more unified view of their customer's journey. We're continuing to hear positive feedback from customers, confirming the opportunity we see to empower businesses with a commerce-enabled CRM. That said, we're early in our payments journey and our focus remains on building the features and functionality our customers need to help them grow. Moving on, our fourth and final strategic priority is to build a sustainable company. An important part of that journey is hiring and developing diverse talent. In the last quarter, we released our annual diversity report and I want to celebrate how far we've come as a company. Today, 47% of HubSpot employees globally identify as women or non-binary, up seven points over the past five years. In the US, 35% of employees identify as BIPOC, up 20 points from 2017. Additionally, we have four women On our executive leadership team, I'm particularly proud of that, and 70% of our board identifies as a woman or person of color. I'm incredibly proud of how far we've come, and we'll continue to work towards building a company that reflects the diversity of our customers. With that, I'll turn it over to Kate to give an overview of our financial results for the quarter. Kate, take it away.