HubSpot Financials and Growth Strategy

GAAP to Non-GAAP Reconciliation Three Months Ended December 31, 2016 Three Months Ended March 31, 2017 Three Months Ended June 30, 2017 Three Months Ended September 30, 2017 Three Months Ended December 31, 2017 Three Months Ended March 31, 2018 Three Months Ended June 30,2018 % of % of % of $'000s Revenues $'000s Revenues $ '000s Revenues $'000s % of Revenues $'000s % of Revenues $'000s % of Revenues $ '000s % of Revenues Gross Margin Gross margin 59,557 78% 65,180 79% 70,502 79% 78,716 81% 85,485 80% 92,179 80% 97,725 80% Stock-based compensation 551 1% 564 1% 844 1% 754 1% 823 1% 967 1% 1,163 1% Amortization of acquired intangible assets 13 0% 9 0% 0% 38 0% 50 0% 50 0% 50 0% Acquisition related expenses 0% 0% 0% 0% 0% 0% 0% Non-GAAP gross margin 60,121 79% 65,753 80% 71,346 80% 79,508 81% 86,358 81% 93,196 81% 98,938 81% Loss from Operations Loss from operations (13,820) -18% (8,000) -10% (10,577) -12% (12,126) -12% (9,433) -9% (11,324) -10% (14,052) -11% Stock-based compensation 9,274 12% 9,303 11% 13,006 15% 12,110 12% 12,898 12% 16,046 14% 19,675 16% Amortization of acquired intangible assets 20 0% 16 0% 0% 38 0% 50 0% 50 0% 50 0% Acquisition related expenses 0% 0% 0% 439 0% 827 1% 802 1% 802 1% Non-GAAP loss from operations (4,526) -6% 1,319 2% 2,429 3% 461 0% 4,342 4% 5,574 5% 6,475 5% Three Months Ended September 30,2018 Three Months Ended December 31, 2018 $ '000s % of Revenues $ '000s % of Revenues $ '000s Three Months Ended March 31, 2019 % of Revenues Three Months Ended June 30, 2019 $ '000s % of Revenue $ '000s Three Months Ended September 30, 2019 % of Revenues $ '000s Three Months Ended December 31, 2019 % of Revenues Three Months Ended March 31, 2020 $ '000s % of Revenues Gross Margin Gross margin 106,061 80% 116,658 81% 122,220 Stock-based compensation 1,194 1% 1,076 1% 1,633 81% 1% 132,113 81% 140,358 81% 150,211 81% 1,488 1% 1,468 1% 1,367 1% 160,683 1,505 81% 1% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 0% 880 0% Acquisition related expenses 0% 0% 0% 0% 0% 0% 0% Non-GAAP gross margin 107,749 82% 118,534 82% 124,653 82% 134,401 82% 142,588 82% 152,417 82% 163,068 82% Loss from Operations Loss from operations (15,050) -11% (7,832) -5% (9,036) -6% (15,725) -10% (14,072) -8% (8,158) -4% (14,102) -7% Stock-based compensation 19,612 15% 20,927 15% 21,205 14% 28,663 18% 23,791 14% 24,095 13% 27,463 14% Amortization of acquired intangible assets 494 0% 800 1% 800 1% 800 0% 762 0% 839 Acquisition related expenses 802 1% 289 0% 32 0% 32 0% 30 0% 814 Non-GAAP loss from operations 5,858 4% 14,184 10% 13,001 9% 13,770 8% 10,511 6% 17,590 ៖ ៖ ៖ 900 0% 333 0% 9% 14,594 7% HubSpot

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