1. Tidemark Customer Presentation:
PAMELA (PETERSON) MARTINEZ, DIRECTOR, HubSpot
MATTHEW ANTONELL, SR. FINANCIAL ANALYST, HubSpot

2. marketing and sales SaaS platform Focused on the mid-market >15,000
An inbound
marketing and sales SaaS platform
Focused on the mid-market
>15,000
customers
Software company – 90% revs….all cloud/subscription.
Build from the ground up to enable companies to transform the way they market and sell to match the way modern humans actually shop and learn today. Start with marketing which is our 1st line of business and will end on sales, a new exciting line of business.
Midmarket – huge, green fields, not rip & replace
Definitionally, HubSpot is an inbound marketing and sales Saas platform: 90% of our revenues are subscription based, and our company was born in the cloud. We’re growing rapidly, and are proud to have a massive install base of over 11,000 customers worldwide. While the marketing technology space may not be new to you, HubSpot’s vision, product, and target market are fundamentally different than many of the players in our space. Specifically today we’ll talk about why we are uniquely positioned to succeed in the mid-market, which we define as companies with employees.
Cambridge, Dublin, Sydney, Singapore
Trading on the NYSE as $HUBS
> 800 employees

3. Continued Momentum Since IPO
GROWTH DRIVERS: Domestic | International | Upsell Customer
REVENUE
CUSTOMERS
ASRPC 5

4. Operating (Loss) / Income %
Key Financial Metrics
Key financial metrics
2011
2012
2013
2014
Q1’15
Gross Margin
61%
70%
65%
73%
% of revenue
R&D
27%
19%
18%
17%
15%
S&M
82%
66%
67%
63%
57%
G&A
21%
16%
Operating (Loss) / Income %
(69%)
(31%)
(39%)
(28%)
(16%)
Gross Margin increased to 67% a 4 point improvement from 2013, while operating margin increased 5 points year over year. After heavy investments in 2013, we are starting to see leverage in the business. We expect to continue to see improvement as we drive towards our long term targets. We expect to reach qtly cash flow profitability in 2016 as we continue grow our install base through higher retention and strong sales. At the same time we will continue to look to our unit economics to weigh driving even higher profitability with driving higher growth.
All percentages for historical and future periods exclude expenses associated with stock based compensation and amortization of acquired intangibles. 23

5. Finance @ HubSpot Accounting Order Management Payroll FP&A
Investor Relations .

6. FP&A Responsibilities
Financial Forecasting & Planning
Financial Reporting of Actual Results 1 2
In addition to these items:
Headcount reporting and tracking
Calculation of employee commissions
Ad hoc scenario planning and modeling
Investor relations requests
Regular presentations: HELM, Board, Management Meetings, Company Meetings
Facilities Planning
Business Partnership with Functional Leaders
SaaS Metric Tracking and Reporting 3 4

7. FP&A @ HubSpot Corporate FP&A Functional FP&A Team of 3 employees:
Managing consolidated forecasting, planning and reporting processes
Managing Tidemark
Supporting G&A
Communication with Accounting and IR
Total of 5 employees supporting and business planning for Sales, Marketing, R&D, Services and Support

8. 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

9. 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

10. 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

11. Current ROI from Tidemark
Consolidation
(Off Excel!!)
Version Control & Record Keeping 1 2
Key problem we’re solving/ ROI is on consolidation (off excel), record-keeping/version control, has forced us to get into real FP&A team cadence over past 1+ year
What problems are you solving?
Why did you choose Tidemark?
How did you solve the problem before Tidemark?
Monthly reforecast, monthly BVA, acceptable variances
Truncated P&L definitions and roll-ups
Helped to formalize FP&A processes 3

12. Workforce Planning

13. Headcount Summary

14. Enter Revenue and Cost of Revenue

15. Enter Non-OTE Expenses

16. Summary P&L

17. Functional P&L

18. Monthly BVA Variance Panel

19. Thoughts on the Future / How to Better Leverage Tidemark
No one system of record for all financial / install base / key metrics related 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
Problem statement

20. Thoughts on the Future / How to Better Leverage Tidemark
Short-Term:
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
Enhance existing panels with all the cuts, views, relative metrics required by our team and functional leaders
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:
Load install base /customer data (via SFDC) to calc other metrics & reporting
Determine model to share with functional leaders direct from Tidemark to streamline the monthly/quarterly budget review process
Long-term driver-based P&L forecasting
Capex/Depreciation forecasting
Load Cash Flow & Balance Sheet actuals…and eventually forecast them here

21. TIDEMARK ADVISORY BOARD
QUESTIONS?
TIDEMARK ADVISORY BOARD