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Safe Harbor Statement

@10 years

3JD Sherman – Chief Operating Officer

94% skip TV ads

94% unsubscribefrom email

27% direct mail is never opened

50% (Over 200M)

are on do not call lists

Base: Varied bases, minimum 598 global consumers Source: HubSpot Global Interruptive Ads Survey, Q4 2015 – Q1 2016.

(Because the way people shop for and buy things has changed)

The Old Marketing & Sales Playbook is Broken

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Inbound Marketing & Sales

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How Does Inbound Work?

Aggressively pushescontent at innocent

bystanders, interrupting their life

Inbound pulls in prospects by offering helpful content

and experience when they need it

VS.

Outbound Inbound

SEO | Blogs | SocialCold Calling | Spam | Interruptive Ads

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Inbound is about the size of your brain, not the width of your wallet

The Inbound Value Proposition: Simply put, it’s about growing an asset vs. renting one.

1 2 3Predictable Measurable Proven ROI

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Source: Historical Blog Post Optimization Project, learn more here: http://blog.hubspot.com/marketing/historical-blog-seo-conversion-optimization

Did you know: More than 90% of HubSpot’s new leads each month come from “Old Content”?

In other words, if HubSpot’s blogging team took next month off,

we’d still generate 92% of leadsas if we’d continued to publish new content.

Predictable

92% Leads from Old Posts

8% Leads from New Posts

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In a digital world, track everything from clicks to conversions to revenue

Measurable

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Proven ROI

Our customers recognize the improved ROI from Inbound Marketing and Sales.

42%

47%

52%

44%

48%

52%

8%

14%

11%

18%

14%

18%

0%

10%

20%

30%

40%

50%

60%

$25K or less $25,001 to$100K

$100,001 to$500K

$500,001 to$1M

$1M to $5M More than $5M

We see higher ROI using inbound marketing

We see higher ROI using outbound marketing

Inbound vs. Outbound ROI by Marketing SpendBig budget or small – everyone gets big returns from inbound

Source: HubSpot’s 2015 State of Inbound Report; survey of approximately 4,000 respondents; majority of respondents are marketers at B2Bs; approx. one-third of respondents have an affiliation with HubSpot; approx. ½ of respondents generate revenue under $1M 11

Growth of Inbound Movement

● 2008: Unknown

● 2012-2014: “Crossed the Chasm”

● 2016: Core Playbook

Source: Google Trends on “Inbound Marketing”“Interest Over Time” - Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. Likewise a score of 0 means the term was less than 1% as popular as the peak.

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Inte

rest

Ove

r T

ime

500%+ Growth in attendance since 2012

Tracks growth of a movement

INBOUND Attendance

14,300

10,300

5,500

2,800

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Registered Attendees 19,000+

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Why HubSpot Wins in the Mid-Market

Inbound philosophy Real customer helpAll-in-one platform

Platform vs. Point Solutions

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Why Aren’t There Any SMB Platforms?

ChurnUpsell

Upgrade

Scalable CAC

Inside Inbound Indirect

Problem Solution Result

“High 90s” revenue retention

4-5x :1 LTV:CAC

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Content Marketing

Marketing Automation

Sales Tools

CRM

Years 1 - 4

Years 4 - 8

Years 8 - 12

HubSpot Product Evolution

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HubSpot Growth Stack

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The Power of All-in-One

Marketing Total>21k Customers

HubSpot Present

Sales Total>5k Customers

20Customer numbers are as of 9/30/16.

HubSpot Present

Growth Stack Customers≈2k Customers

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Marketing Only≈19k Customers

Sales Only≈3k Customers

Customer numbers are as of 9/30/16.

Marketing Total21k Customers

HubSpot Moving Forward

Growth Stack Customers

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“Code” Funnel

Up-sell Opportunity

Cross-sell Opportunity

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Looking Ahead to 2017 – “One HubSpot”

• Successful “acquisition” of our Sales business• Growth of “sticky” platform customers• Lighter-touch, product-driven funnel• Engage more deeply with our partners

• Invest in our Sales tools• Built for more of our mid-market customers

• Grow our “Code” funnel• Add a product-driven funnel on marketing side• Full freemium growth stack

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Inbound 2016: What You’ll Hear Today

1. Brian and Dharmesh will discuss our vision for the future

2. Christopher O’Donnell will discuss product innovations

3. David McNeil will discuss enhancements to our partner program

Recognize

ProductizeDemocratize

Thank You

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