HubSpot, Inc.

Good afternoon, and welcome to HubSpot's first quarter 2026 earnings call. My name is Liz, and I will be your operator today. At this time, all participant lines are in listen-only mode, and there will be an opportunity for questions and answers after management's prepared remarks. If you'd like to enter the queue for questions, you may do so by dialing star followed by 1-1 on your telephone keypad. I would now like to hand the conference over to Head Director of Investor Relations, Chuck McGlashing. Please go ahead.

Good afternoon, and welcome to HubSpot's first quarter 2026 earnings conference call. Today, we'll be discussing the results announced in the press release that we issued this afternoon. 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. A Farber statement included in today's press release. During this call, we'll make forward-looking statements within the meaning of the federal securities laws. including statements regarding our financial guidance for the second fiscal quarter and full year 2026, future financial performance, business outlook, and strategy. These statements reflect our views only as of today and, except as required by law, we undertake no obligation to update or revise them. Please refer to the cautionary language in today's press release, our Form 10-Q, and other SEC filings 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. Reconciliations to the most directly comparable GAAP measures can be found in today's press release. Now, it's my pleasure to turn over the call to HubSpot's Chief Executive Officer, Yamini Rangan. Yamini?

Thank you, Jacques, and welcome to everyone joining us today. I'll start with our Q1 2026 results and share what's driving our performance. Then I'll walk through our strategy and the progress we made with our Spring Spotlight product updates and how they're delivering real outcomes for our customers. I'll close with how we are balancing growth and profitability as we transform as an AI-first company. Let's dive in. Q1 was a solid quarter for HubSpot, with revenue growing 18.2% year-over-year in constant currency. We delivered four points of non-GAAP operating margin expansion year over year, bringing our operating margin to 17.8%. Q1 marked a meaningful milestone for HubSpot as our total customer count reached nearly 300,000 globally, driven by 10,800 net customer additions in the quarter. I'm pleased with how our AI strategy is translating into measurable growth outcomes for our customers. We came into this year with clear levers to drive growth, and they're working. Our core growth levers of upmarket, multi-hub and platform consolidation, and pricing tailwind remain solid. At the same time, our emerging AI monetization levers of core seats and credits are gaining traction. Let me walk you through each one and how they drove Q1 performance. Upmarket momentum continues to be strong. Larger customers are consolidating on HubSpot to drive AI innovation and reduce total cost of ownership. In Q1, deals over 60,000 annual recurring revenue grew 37% year over year, and deals over 120,000 ARR grew 64% year over year. Our partner ecosystem remains a core competitive moat, with partners sourcing and co-selling many of our largest deals. AI adoption in B2B starts with clean data and unified context. That is what is driving our multi-hub and platform momentum. Customers who bring together marketing, sales, and service on HubSpot get a single connected view of their customers and unified growth context that AI can act on. That value proposition is resonating. In Q1, 63% of new ProPlus customers landed with multiple hubs, up three points year over year. And 42% of our ProPlus install base by ARR now owns four or more hubs, up six points year over year. Bottom line is this. Customers are choosing HubSpot as the data and AI foundation for their go-to-market. In addition, our pricing model changes from 2024 continues to benefit overall growth. We lowered the price to get started and removed seat minimums to give customers a frictionless path to upgrade as they see value. That shift is largely complete. About 90% of our install-based customers have migrated to the new pricing model, and more than 50% of our ARR has gone through their first renewal. We expect this pricing tailwind to continue as remaining customers come up for renewal and new customers upgrade based on the value we deliver. Now, beyond our proven core levers, our AI monetization with core seats and credits is picking up pace. In 2025, we added significant AI data and platform value to the core seat. Breeze Assistant, Smart Starts, projects, and company enrichment data are all now included. We also unbundled the smart CRM so customers can start with just a core seat. Our vision is to make Core Seat an essential foundation for every go-to-market employee, and the momentum backs up that strategy. Active Core Seat users grew 90% year over year, and over 25% of ProPlus customers have now purchased additional Core Seats, up over 12 points year over year. Credit consumption is accelerating. Total credits consumed grew 67% quarter over quarter. The top use cases in Q1 were customer agent at 53% of credits consumed, prospecting agent at 17%, data agent at 16%, and intent monitoring at 12%. Customer agent is found to your product market fit. And now prospecting agent and data agent are gaining momentum, broadening the base of how customers get value. Customers are not just trying AI, they're building it into how they work. Core seats and credits are becoming real growth levers, and as more use cases mature, we expect both to compound. Now, let me shift to the momentum from Spring Spotlight and the progress on our strategy. Our AI strategy is simple. Make AI work for growth companies. We've always won by deeply understanding the customer segment we serve and democratizing sophisticated technology for them. And that is exactly what we are doing with AI. Today, companies are not struggling to find new AI tools. They're struggling to drive real growth outcomes. The difference comes down to context. AI without the right context produces output. AI with the right context produces outcomes. And that is the gap HubSpot is built to close. The foundation of our platform is growth context. the specific knowledge that makes AI useful for go-to-market teams. It knows who the best customers are and why they buy. It knows how the best reps work and how deals close. It knows what progress pipeline looks like and where deals get stuck. HubSpot captures all of this, business team, process, customer context, across nearly 300,000 businesses in every industry. This becomes the shared foundation for agents to do real work and drive growth outcomes, as many of you saw at our investor webinar last month. We're not building AI features on top of CRM. We're building an agentic customer platform where growth context is the engine, agents can run on HubSpot, and agents can run HubSpot. Running on HubSpot means any agent Ours or anyone else's can plug into HubSpot's data, context, and capabilities as a building block. Running HubSpot means agents can operate the platform end-to-end through our APIs, MCP server, and whatever access methods come next. This openness is a strategic choice. The more agents that run on HubSpot, the more valuable our context becomes. And the more valuable our context, the stronger a platform gets. At Spring Spotlight, we launched key innovations to help customers drive outcomes with AI. Let me share the momentum we are seeing with our top agents. Prospecting Agent handles the full prospecting lifecycle, monitoring buying signals, identifying high intent prospects, and crafting personalized outreach. Nearly 14,000 customers have activated it, up 33% quarter over quarter. JotForm, an online form builder used by over 35 million people worldwide, trained prospecting agent on their brand positioning and messaging and moved to a fully automated setup, purchasing 625,000 credits per month to power it. In a direct test at JotForm, prospecting agent qualified leads on par with human reps, freeing the team to focus on customer meetings and closing deals. Next, smart deal progression brings to life our vision of self-updating CRM. It listens to conversations, suggests CRM updates, drafts follow-up emails, and recommends next steps so sales reps can focus on closing deals, not updating records. Customers are seeing a 10x improvement in CRM update accuracy, and we are seeing 75% repeat weekly usage. Data Agent, which we launched last fall and updated at Spring Spotlight, is gaining significant traction. It enriches customer records, surfaces buying intent signals, and prioritizes best fit accounts, giving marketing a better foundation for campaigns and sales a clearer view of prospects. We're seeing significant growth in adoption. Over 9,000 customers have activated Data Agent, up 122% since last quarter, and weekly usage is also up. We also enhanced Customer Agent and expanded it to email to help customers scale support with AI. We now have over 9,000 customers and the average resolution rate has climbed to 70%, up five points from last quarter, with some customers exceeding 90% resolution rates. Now, at the same time, we're reimagining marketing for the AI era. We launched HubSpot AEO at Spring Spotlight to help marketeers see how their brand appears in AI tools like ChatGPT, Gemini, and Perplexity, and take actions to improve it. Early momentum is strong across paid, earned, and owned, with campaign activities earning millions of impressions. This is beginning to drive trials and purchases of both standalone AEO and Marketing Hub Pro. Customer outcomes across all of our updates this year speak for themselves. Limelight is booking meetings with prospecting agents at the same rate as their SDRs. Synergym is resolving 85% of support conversations autonomously. And Sandler grew leads 160% with our new AEO tools. Across sales, service, and marketing, our agents are doing real work and driving outcomes, exactly what we want to see. The confidence we have in our product strategy is also reflected in how we are evolving pricing. We believe AI value should be measured on outcomes, So we recently updated our pricing for agents to match. Customer agent has moved to consuming credits based on resolved tickets, and prospecting agent has moved to qualified leads recommended for outreach. Both agents now come with free 28-day trial, so customers can see the value before they commit. This is outcome-based pricing in its simplest form. Customers pay when the agent works. We expect both our product updates at Spring Spotlight and pricing changes to accelerate adoption because when value is easy to observe, the decision to expand is easy to make. Let me close with how we are balancing growth and profitability as we transform as an AI-first company. We are transforming how we build, how we grow, and how we operate, and that transformation is showing up in our results. On how we build, 100% of our engineers now use AI tools, and we have seen a 73% increase in lines of code updated per engineer. We are shipping better products faster because we built the shared platform underneath our agents. Every new capability or skill we add makes the whole platform more powerful and our advantage compounds. On how we grow, We now have an agent-first go-to-market motion, from demand generation to prospecting to customer success, and it is working. On how we operate, we are moving from individual productivity to team-level transformation to what we call institutional productivity, where the context and processes of the company are encoded and available to everyone when they need it. we are investing aggressively in AI innovation while expanding operating margins at the same time. We not only beat our Q1 operating margin target, but also expect to deliver two points of operating margin expansion in 2026. That is a meaningful step up, and it reflects the operating leverage we are building as an AI-first company. In closing, our core growth drivers Upmarket momentum, multi-hub adoption, and pricing remain strong and durable. AI is adding two incremental levers, core seed and credit monetization. Together, they give us confidence in our ability to deliver durable growth while expanding profitability. With that, I'll hand it over to our CFO, Kate Bucher, to walk you through our financial and operating results.