HubSpot Stories This fall and Full Yr 2021 Outcomes

CAMBRIDGE, Mass., Feb. 10, 2022 /PRNewswire/ — HubSpot, Inc. ( NYSE: HUBS), the client relationship administration (CRM) platform for scaling corporations, right this moment introduced monetary outcomes for the fourth quarter and full 12 months ended December 31, 2021.

Monetary Highlights:

Income
Fourth Quarter 2021:

Complete income was $369.3 million, up 47% in comparison with This fall’20.

Subscription income was $358.7 million, up 47% in comparison with This fall’20.
Skilled companies and different income was $10.7 million, up 38% in comparison with This fall’20.

Full Yr 2021:

Complete income was $1.30 billion, up 47% in comparison with 2020.

Subscription income was $1.26 billion, up 48% in comparison with 2020.
Skilled companies and different income was $42.3 million, up 41% in comparison with 2020.

Working Revenue (Loss)
Fourth Quarter 2021:

GAAP working margin was (2.2%), in comparison with (3.0%) in This fall’20.
Non-GAAP working margin was 10.3%, in comparison with 9.8% in This fall’20.
GAAP working loss was ($8.2) million, in comparison with ($7.6) million in This fall’20.
Non-GAAP working revenue was $38.2 million, in comparison with $24.6 million in This fall’20.

Full Yr 2021:

GAAP working margin was (4.2%), in comparison with (5.8%) in 2020.
Non-GAAP working margin was 9.0%, in comparison with 8.5% in 2020.
GAAP working loss was ($54.8) million, in comparison with ($50.8) million in 2020.
Non-GAAP working revenue was $117.6 million, in comparison with $74.9 million in 2020.

Internet Revenue (Loss)
Fourth Quarter 2021:

GAAP web loss was ($16.4) million, or ($0.35) per primary and diluted share, in comparison with ($15.4) million, or ($0.34) per primary and diluted share in This fall’20.
Non-GAAP web revenue was $29.6 million, or $0.63 per primary and $0.58 per diluted share, in comparison with $20.1 million, or $0.44 per primary and $0.40 per diluted share in This fall’20.
Weighted common primary and diluted shares excellent for GAAP web loss per share was 47.3 million, in comparison with 46.0 million primary and diluted shares in This fall’20.
Weighted common primary and diluted shares excellent for non-GAAP web revenue per share was 47.3 million and 50.9 million respectively, in comparison with 46.0 million and 49.9 million, respectively in This fall’20.

Full Yr 2021:

GAAP web loss was ($77.8) million, or ($1.66) per primary and diluted share, in comparison with ($85.0) million, or ($1.90) per primary and diluted share in 2020.
Non-GAAP web revenue was $92.5 million, or $1.97 per primary and $1.82 per diluted share, in comparison with $64.5 million, or $1.44 per primary and $1.32 per diluted share in 2020.
Weighted common primary and diluted shares excellent for GAAP web loss per share was 46.9 million, in comparison with 44.8 million primary and diluted shares in 2020.
Weighted common primary and diluted shares excellent for non-GAAP web revenue per share was 46.9 million and 50.7 million respectively, in comparison with 44.8 million and 48.7 million, respectively in 2020.

Stability Sheet and Money Move

The corporate’s money, money equivalents, and short-term and long-term investments steadiness was $1.37 billion as of December 31, 2021.
In the course of the fourth quarter, the corporate generated $97.2 million of working money stream, excluding the $2.0 million used for the reimbursement of our convertible notes, in comparison with $61.3 million throughout This fall’20, which excluded the $0.4 million used for the reimbursement of our convertible notes.
In the course of the fourth quarter, the corporate generated $78.3 million of free money stream, in comparison with $45.8 million throughout This fall’20.
The corporate generated $265.2 million of working money stream throughout 2021, excluding the $26.4 million used for the reimbursement of our convertible notes, in comparison with $138.0 million throughout 2020, which excluded the $49.0 million used for the reimbursement of our convertible notes.
The corporate generated $203.3 million of free money stream throughout 2021, in comparison with $79.1 million throughout 2020.

Further Latest Enterprise Highlights

Grew Prospects to 135,442 at December 31, 2021, up 30% from December 31, 2020.
Common Subscription Income Per Buyer was $10,875 through the fourth quarter of 2021, up 11% in comparison with the fourth quarter of 2020.

“I’m extremely pleased with how the HubSpot group was capable of adapt and execute in 2021 to ship a really distinctive 12 months,” mentioned Yamini Rangan, Chief Government Officer at HubSpot. “We went into 2021 with the aim of changing into the #1 CRM platform for scaling corporations, and we made important progress by staying targeted on our key strategic priorities. 2022 will likely be a 12 months of sustained focus and consistency as we proceed to put money into these priorities.”

Enterprise Outlook
Based mostly on data obtainable as of February 10, 2022, HubSpot is issuing steerage for the primary quarter of 2022 and full 12 months 2022 as indicated beneath.

First Quarter 2022:

Complete income is anticipated to be within the vary of $381 million to $383 million.
Non-GAAP working revenue is anticipated to be within the vary of $30 million to $31 million.
Non-GAAP web revenue per frequent share is anticipated to be within the vary of $0.46 to $0.48. This assumes roughly 51.3 million weighted common diluted shares excellent.

Full Yr 2022:

Complete income is anticipated to be within the vary of $1.72 billion to $1.73 billion.
Non-GAAP working revenue is anticipated to be within the vary of $155 million to $157 million.
Non-GAAP web revenue per frequent share is anticipated to be within the vary of $2.34 to $2.42. This assumes roughly 51.5 million weighted common diluted shares excellent.

Use of Non-GAAP Monetary Measures
In our earnings press releases, convention calls, slide shows, and webcasts, we could use or focus on non-GAAP monetary measures, as outlined by Regulation G. The GAAP monetary measure most straight comparable to every non-GAAP monetary measure used or mentioned, and a reconciliation of the variations between every non-GAAP monetary measure and the comparable GAAP monetary measure, are included on this press launch after the consolidated monetary statements. Our earnings press releases containing such non-GAAP reconciliations will be discovered within the Buyers part of our web site ir.hubspot.com.

Convention Name Data
HubSpot will host a convention name on Thursday February 10, 2022 at 4:30 p.m. Japanese Time (ET) to debate the corporate’s fourth quarter and full 12 months 2021 monetary outcomes and its enterprise outlook. To register for this convention name, please use this dial in registration hyperlink or go to HubSpot’s Investor Relations web site at ir.hubspot.com. After registering, a affirmation electronic mail will likely be despatched, together with dial-in particulars and a singular code for entry. Members who want to register for the convention name webcast please use this hyperlink.

Following the convention name, a replay will likely be obtainable at (800) 770-2030 (home) or (647) 362-9199 (worldwide). The replay passcode is 41811. An archived webcast of this convention name can even be obtainable on HubSpot’s Investor Relations web site at ir.hubspot.com.

The corporate has used, and intends to proceed to make use of, the investor relations portion of its web site as a method of exposing materials private data and for complying with disclosure obligations beneath Regulation FD.

About HubSpot
HubSpot is a number one CRM platform that gives software program and assist to assist corporations develop higher. The platform consists of advertising, gross sales, service, operations, and web site administration merchandise that begin free and scale to fulfill our prospects’ wants at any stage of progress. At the moment, over 135,000 prospects throughout greater than 120 international locations use HubSpot’s highly effective and easy-to-use instruments and integrations to draw, have interaction, and delight prospects. Be taught extra at www.hubspot.com.

Cautionary Language Regarding Ahead-Trying Statements
This press launch consists of sure “forward-looking statements” throughout the which means of the Personal Securities Litigation Reform Act of 1995, together with statements concerning administration’s expectations of future monetary and operational efficiency and operational expenditures, anticipated progress, and enterprise outlook, together with our monetary steerage for the primary fiscal quarter of and full 12 months 2022; and statements concerning our positioning for future progress and market management; statements concerning anticipated market tendencies, future priorities and associated investments, and alternatives. These forward-looking statements embrace, however aren’t restricted to, plans, goals, expectations and intentions and different statements contained on this press launch that aren’t historic information and statements recognized by phrases equivalent to “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or phrases of comparable which means. These forward-looking statements mirror our present views about our plans, intentions, expectations, methods and prospects, that are primarily based on the data at present obtainable to us and on assumptions now we have made. Though we imagine that our plans, intentions, expectations, methods and prospects as mirrored in or steered by these forward-looking statements are affordable, we may give no assurance that the plans, intentions, expectations or methods will likely be attained or achieved. Moreover, precise outcomes could differ materially from these described within the forward-looking statements and will likely be affected by quite a lot of dangers and components which are past our management together with, with out limitation, dangers related to our historical past of losses; our skill to retain current prospects and add new prospects; the continued progress of the marketplace for a CRM platform; our skill to distinguish our platform from competing merchandise and applied sciences; our skill to handle our progress successfully to take care of our excessive degree of service; our skill to take care of and increase relationships with our options companions; our skill to efficiently recruit and retain highly-qualified personnel; the worth volatility of our frequent inventory; the influence of COVID-19 on our enterprise, the broader economic system, our workforce and operations, and our skill to forecast our future monetary efficiency because of COVID-19; and different dangers set forth beneath the caption “Danger Elements” in our SEC filings. We assume no obligation to replace any forward-looking statements contained on this doc because of new data, future occasions or in any other case.


Consolidated Stability Sheets (in hundreds)

	December 31,		December 31,
	2021		2020
Belongings
Present property:
Money and money equivalents	$	377,013	$	378,123
Quick-term investments		820,962		873,073
Accounts receivable		157,362		126,433
Deferred fee expense		59,849		44,576
Pay as you go bills and different present property		38,388		34,716
Complete present property		1,453,574		1,456,921
Lengthy-term investments		174,895		30,697
Property and tools, web		96,134		101,123
Capitalized software program improvement prices, web		39,858		24,943
Proper-of-use property		280,828		275,893
Deferred fee expense, web of present portion		42,681		28,296
Different property		29,244		13,893
Intangible property, web		10,565		10,282
Goodwill		47,075		31,318
Complete property	$	2,174,854	$	1,973,366
Liabilities and stockholders’ fairness
Present liabilities:
Accounts payable	$	2,773	$	13,540
Accrued compensation prices		63,836		44,054
Accrued bills and different present liabilities		74,457		37,184
Convertible senior notes		19,630		7,837
Working lease liabilities		26,364		30,020
Deferred income		430,414		312,866
Complete present liabilities		617,474		445,501
Working lease liabilities, web of present portion		283,873		279,664
Deferred income, web of present portion		4,473		3,636
Different long-term liabilities		12,134		10,811
Convertible senior notes, web of present portion		383,101		471,099
Complete liabilities		1,301,055		1,210,711
Stockholders’ fairness:
Frequent inventory		47		46
Further paid-in capital		1,436,089		1,241,167
Gathered different complete (loss) revenue		(1,339)		4,603
Gathered deficit		(560,998)		(483,161)
Complete stockholders’ fairness		873,799		762,655
Complete liabilities and stockholders’ fairness	$	2,174,854	$	1,973,366

Consolidated Statements of Operations (in hundreds, besides per share knowledge)

	For the Three Months Ended December 31,				Yr Ended December 31,
	2021		2020		2021		2020
Revenues:
Subscription	$	358,657	$	244,323	$	1,258,319	$	853,025
Skilled companies and different		10,652		7,742		42,339		30,001
Complete income		369,309		252,065		1,300,658		883,026
Value of revenues:
Subscription		58,599		37,369		211,132		130,685
Skilled companies and different		13,040		9,925		47,725		36,274
Complete price of revenues		71,639		47,294		258,857		166,959
Gross revenue		297,670		204,771		1,041,801		716,067
Working bills:
Analysis and improvement		82,997		55,564		301,970		205,589
Gross sales and advertising		180,845		127,851		649,681		452,081
Common and administrative		42,065		28,997		144,949		109,225
Complete working bills		305,907		212,412		1,096,600		766,895
Loss from operations		(8,237)		(7,641)		(54,799)		(50,828)
Different expense:
Curiosity revenue		126		623		1,173		7,773
Curiosity expense		(5,905)		(7,226)		(30,282)		(37,049)
Different (expense) revenue		(974)		441		10,090		(711)
Complete different expense		(6,753)		(6,162)		(19,019)		(29,987)
Loss earlier than revenue tax expense		(14,990)		(13,803)		(73,818)		(80,815)
Revenue tax expense		(1,380)		(1,613)		(4,019)		(4,216)
Internet loss	$	(16,370)	$	(15,416)	$	(77,837)	$	(85,031)
Internet loss per share, primary and diluted	$	(0.35)	$	(0.34)	$	(1.66)	$	(1.90)
Weighted common frequent shares utilized in computing primary and diluted web loss per share:		47,304		45,983		46,891		44,757

Consolidated Statements of Money Flows (in hundreds)

	For the Three Months Ended December 31,				Yr Ended December 31,
	2021		2020		2021		2020
Working Actions:
Internet loss		(16,370)	$	(15,416)	$	(77,837)	$	(85,031)
Changes to reconcile web loss to web money and money equivalents supplied by working actions
Depreciation and amortization		11,970		9,993		45,159		37,060
Inventory-based compensation		45,914		31,466		166,761		121,488
Loss on early extinguishment of 2022 Convertible Notes		68		14		4,892		10,507
Reimbursement of 2022 Convertible Notes attributable to the debt low cost		(1,971)		(373)		(26,428)		(49,048)
Achieve on strategic investments		(2)	—			(11,741)	—
Achieve on termination of working leases	—		—			(4,276)	—
Loss on disposal of fastened property	—		—			6,468	—
Profit from deferred revenue taxes		(1,548)		(1,449)		(2,869)		(2,185)
Amortization of debt low cost and issuance prices		5,393		6,702		23,507		24,890
Amortization (accretion) of bond low cost		1,332		59		4,275		(3,657)
Unrealized forex translation		701		(831)		1,304		(952)
Adjustments in property and liabilities
Accounts receivable		(31,859)		(29,592)		(34,107)		(29,971)
Pay as you go bills and different property		6,072		5,570		(1,077)		(17,026)
Deferred fee expense		(8,189)		(7,937)		(32,560)		(19,288)
Proper-of-use property		4,470		8,824		31,418		31,406
Accounts payable		1,343		627		(10,608)		3,697
Accrued bills and different liabilities		20,025		12,240		58,209		26,020
Working lease liabilities		(3,056)		(10,105)		(29,478)		(31,621)
Deferred income		60,891		51,133		127,716		72,624
Internet money and money equivalents supplied by working actions		95,184		60,925		238,728		88,913
Investing Actions:
Purchases of investments		(447,431)		(139,915)		(1,484,762)		(1,517,357)
Maturities of investments		446,722		338,961		1,387,498		1,352,231
Sale of investments	—		—		—			10,932
Fairness methodology funding	—		—			(3,100)	—
Acquisition of a enterprise, web of money acquired	—		—			(16,810)	—
Purchases of property and tools		(11,327)		(9,521)		(28,726)		(37,274)
Proceeds from sale of strategic investments		12,620				12,620
Capitalization of software program improvement prices		(7,501)		(5,955)		(33,139)		(21,599)
Purchases of strategic investments		(2,887)		(500)		(13,089)		(2,500)
Internet money and money equivalents (utilized in) supplied by investing actions		(9,804)		183,070		(179,508)		(215,567)
Financing Actions:
Proceeds from issuance of 2025 Convertible Notes, web of issuance prices paid of $9.9 million	—		—		—			450,123
Proceeds from settlement of Convertible Notice Hedges associated to the 2022 Convertible Notes		8,256		1,062		8,985		363,554
Funds for settlement of Warrants associated to the 2022 Convertible Notes	—		—		—			(327,543)
Reimbursement of 2022 Convertible Notes attributable to the principal		(9,097)		(1,627)		(89,525)		(235,993)
Funds for Capped Name Choices associated to the 2025 Convertible Notes	—		—		—			(50,600)
Worker taxes paid associated to the web share settlement of stock-based awards		(5,711)		(2,787)		(17,439)		(7,424)
Proceeds associated to the issuance of frequent inventory beneath inventory plans		12,386		8,115		46,510		30,371
Repayments of finance lease obligations	—		—		—			(28)
Internet money and money equivalents supplied by (utilized in) financing actions		5,834		4,763		(51,469)		222,460
Impact of change charge modifications on money, money equivalents and restricted money		(2,535)		4,470		(8,861)		6,831
Internet improve in money, money equivalents and restricted money		88,679		253,228		(1,110)		102,637
Money, money equivalents and restricted money, starting of interval		291,363		127,924		381,152		278,515
Money, money equivalents and restricted money, finish of interval	$	380,042	$	381,152	$	380,042	$	381,152

Reconciliation of non-GAAP working revenue and working margin (in hundreds, besides percentages)

	Three Months Ended December 31,						Yr Ended December 31,
	2021			2020			2021			2020
GAAP working loss	$	(8,237)		$	(7,641)		$	(54,799)		$	(50,828)
Inventory-based compensation		45,914			31,466			166,761			121,488
Amortization of acquired intangible property		318			159			1,326			2,419
Acquisition associated bills		170			640			2,087			1,832
Achieve on termination of working leases		—			—			(4,276)			—
Loss on disposal of fastened property		—			—			6,468			—
Non-GAAP working revenue	$	38,165		$	24,624		$	117,567		$	74,911

GAAP working margin		(2.2)	%		(3.0)	%		(4.2)	%		(5.8)	%
Non-GAAP working margin		10.3	%		9.8	%		9.0	%		8.5	%

Reconciliation of non-GAAP web revenue (in hundreds, besides per share quantities)

	Three Months Ended December 31,				Yr Ended December 31,
	2021		2020		2021		2020
GAAP web loss	$	(16,370)		(15,416)	$	(77,837)	$	(85,031)
Inventory-based compensation		45,914		31,466		166,761		121,488
Amortization of acquired intangibles property		318		159		1,326		2,419
Acquisition associated bills		170		640		2,087		1,832
Achieve on termination of working leases		—		—		(4,276)		—
Loss on disposal of fastened property		—		—		6,468		—
Non-cash curiosity expense for amortization of debt low cost and debt issuance prices		5,393		6,702		23,507		24,890
(Achieve on) impairment of strategic investments		(2)		—		(11,741)		250
Loss on early extinguishment of 2022 Convertible Notes		68		14		4,892		10,507
Loss on fairness methodology funding		150		—		371		—
Revenue tax results of non-GAAP objects		(6,024)		(3,423)		(19,096)		(11,898)
Non-GAAP web revenue	$	29,617		20,142	$	92,462	$	64,457

Non-GAAP web revenue per share:
Fundamental	$	0.63	$	0.44	$	1.97	$	1.44
Diluted	$	0.58	$	0.40	$	1.82	$	1.32
Shares utilized in non-GAAP per share calculations
Fundamental		47,304		45,983		46,891		44,757
Diluted		50,888		49,922		50,694		48,739

Reconciliation of non-GAAP expense and expense as a proportion of income (in hundreds, besides percentages)

	Three Months Ended December 31,
	2021															2020
	COS, Subs- cription			COS, Prof. companies & different			R&D			S&M			G&A			COS, Subs- cription			COS, Prof. companies & different			R&D			S&M			G&A
GAAP expense	$	58,599		$	13,040		$	82,997		$	180,845		$	42,065		$	37,369		$	9,925		$	55,564		$	127,851		$	28,997
Inventory -based compensation		(1,742)			(821)			(16,600)			(17,511)			(9,240)			(1,294)			(651)			(10,303)			(13,568)			(5,650)
Amortization of acquired intangible property		(228)			—			—			(90)			—			(139)			—			—			(20)			—
Acquisition associated bills		—			—			(131)			—			(39)			—			—			(285)			—			(355)
Non-GAAP expense	$	56,629		$	12,219		$	66,266		$	163,244		$	32,786		$	35,936		$	9,274		$	44,976		$	114,263		$	22,992

GAAP expense as a proportion of income		15.9	%		3.5	%		22.5	%		49.0	%		11.4	%		14.8	%		3.9	%		22.0	%		50.7	%		11.5	%
Non-GAAP expense as a proportion of income		15.3	%		3.3	%		17.9	%		44.2	%		8.9	%		14.3	%		3.7	%		17.8	%		45.3	%		9.1	%


	Yr Ended December 31,
	2021															2020
	COS, Subs- cription			COS, Prof. companies & different			R&D			S&M			G&A			COS, Subs- cription			COS, Prof. companies & different			R&D			S&M			G&A
GAAP expense	$	211,132		$	47,725		$	301,970		$	649,681		$	144,949		$	130,685		$	36,274		$	205,589		$	452,081		$	109,225
Inventory -based compensation		(6,297)			(3,092)			(61,614)			(67,413)			(28,345)			(4,408)			(2,536)			(39,366)			(50,552)			(24,626)
Amortization of acquired intangible property		(937)			—			—			(389)			—			(2,340)			—			—			(79)			—
Acquisition associated bills		—			—			(1,152)			(367)			(568)			—			—			(1,287)			—			(545)
Achieve on termination of working leases		395			275			1,346			1,839			421			—			—			—			—			—
Loss on disposal of fastened property		(600)			(415)			(2,036)			(2,781)			(636)			—			—			—			—			—
Non-GAAP expense	$	203,693		$	44,493		$	238,514		$	580,570		$	115,821		$	123,937		$	33,738		$	164,936		$	401,450		$	84,054

GAAP expense as a proportion of income		16.2	%		3.7	%		23.2	%		50.0	%		11.1	%		14.8	%		4.1	%		23.3	%		51.2	%		12.4	%
Non-GAAP expense as a proportion of income		15.7	%		3.4	%		18.3	%		44.6	%		8.9	%		14.0	%		3.8	%		18.7	%		45.5	%		9.5	%

Reconciliation of non-GAAP subscription margin (in hundreds, besides percentages)

	Three Months Ended December 31,						Yr Ended December 31,
	2021			2020			2021			2020
GAAP subscription margin	$	300,058		$	206,954		$	1,047,187		$	722,340
Inventory -based compensation		1,742			1,294			6,297			4,408
Amortization of acquired intangible property		228			139			937			2,340
Achieve on termination of working leases		—			—			(395)			—
Loss on disposal of fastened property		—			—			600			—
Non-GAAP subscription margin	$	302,028		$	208,387		$	1,054,626		$	729,088

GAAP subscription margin proportion		83.7	%		84.7	%		83.2	%		84.7	%
Non-GAAP subscription margin proportion		84.2	%		85.3	%		83.8	%		85.5	%

Reconciliation of free money stream
(in hundreds)

	Three Months Ended December 31,				Yr Ended December 31,
	2021		2020		2021		2020
GAAP web money and money equivalents supplied by working actions	$	95,184	$	60,925	$	238,728	$	88,913
Purchases of property and tools		(11,327)		(9,521)		(28,726)		(37,274)
Capitalization of software program improvement prices		(7,501)		(5,955)		(33,139)		(21,599)
Reimbursement of 2022 Convertible Notes attributable to the debt low cost		1,971		373		26,428		49,048
Free money stream	$	78,327	$	45,822	$	203,291	$	79,088

Reconciliation of working money stream (in hundreds)

	Three Months Ended December 31,				Yr Ended December 31,
	2021		2020		2021		2020
GAAP web money and money equivalents supplied by working actions	$	95,184	$	60,925	$	238,728	$	88,913
Reimbursement of 2022 Convertible Notes attributable to the debt low cost		1,971		373		26,428		49,048
Working money stream, excluding reimbursement of convertible debt	$	97,155	$	61,298	$	265,156	$	137,961

Reconciliation of forecasted non-GAAP working revenue (in hundreds, besides percentages)

	Three Months Ended March 31, 2022		Yr Ended December 31, 2022
GAAP working revenue vary	($16,530)-($15,530)		($146,011)-($142,011)
Inventory-based compensation		46,118		297,365
Amortization of acquired intangible property		412		1,646
Non-GAAP working revenue vary	$30,000-$31,000		$153,000-$157,000

Reconciliation of forecasted non-GAAP web revenue and non-GAAP web revenue per share (in hundreds, besides per share quantities)

	Three Months Ended March 31, 2022		Yr Ended December 31, 2022
GAAP web loss vary	($20,007)-($18,757)		($158,775)-($153,775)
Inventory-based compensation		46,118		297,365
Amortization of acquired intangible property		412		1,646
Non-cash curiosity expense for amortization of debt issuance prices		972		2,808
Revenue tax results of non-GAAP objects	($4,095)-($4,345)		($22,444)-($23,444)
Non-GAAP web revenue vary	$23,400-$24,400		$120,600-$124,600

GAAP web revenue per primary and diluted share	($0.42)-($0.39)		($3.28)-($3.18)
Non-GAAP web revenue per diluted share	$0.46-$0.48		$2.34-$2.42


Weighted common frequent shares utilized in computing GAAP primary and diluted web loss per share:		47,604		48,372
Weighted common frequent shares utilized in computing non-GAAP diluted web loss per share:		51,265		51,457

HubSpot’s estimates of stock-based compensation, amortization of acquired intangible property, non-cash curiosity expense for amortization of debt issuance prices, and revenue tax results of non-GAAP objects assume, amongst different issues, the prevalence of no further acquisitions, and no additional revisions to stock-based compensation and associated bills.

Non-GAAP Monetary Measures
We report our monetary leads to accordance with accounting ideas usually accepted in the USA of America, or GAAP. Nevertheless, administration believes that, with a view to correctly perceive our short-term and long-term monetary and operational tendencies, traders could want to think about the influence of sure non-cash or non-recurring objects when used as a complement to monetary efficiency measures in accordance with GAAP. These things outcome from information and circumstances that adjust in frequency and influence on persevering with operations. On this launch, HubSpot’s non-GAAP working revenue, working margin, subscription margin, expense, expense as a proportion of income, web revenue, working and free money stream aren’t offered in accordance with GAAP and aren’t supposed for use in lieu of GAAP shows of outcomes of operations. Free money stream is outlined as money and money equivalents supplied by or utilized in working actions much less purchases of property and tools and capitalization of software program improvement prices, plus repayments of convertible notes attributable to debt low cost. We imagine data concerning free money stream gives helpful data to traders in understanding and evaluating the power of liquidity and obtainable money and the exclusion of repayments of convertible notes attributable to debt low cost from working money stream gives a comparable framework for assessing how our enterprise carried out when in comparison with prior intervals and in addition aligns the non-GAAP therapy of our debt low cost that’s amortized as non-cash curiosity expense.

Administration believes that these non-GAAP monetary measures present further technique of evaluating period-over-period working efficiency. Particularly, these non-GAAP monetary measures present administration with further means to know and consider the working outcomes and tendencies in our ongoing enterprise by eliminating sure non-cash bills and different objects that administration believes may in any other case make comparisons of our ongoing enterprise with prior intervals tougher, obscure tendencies in ongoing operations, or scale back administration’s skill to make helpful forecasts. As well as, administration understands that some traders and monetary analysts discover this data useful in analyzing our monetary and operational efficiency and evaluating this efficiency to our friends and opponents. Nevertheless, these non-GAAP monetary measures have limitations as an analytical device and aren’t supposed to be a substitute for monetary measures ready in accordance with GAAP. As well as, it ought to be famous that these non-GAAP monetary measures could also be completely different from non-GAAP measures utilized by different corporations. We intend to offer these non-GAAP monetary measures as a part of our future earnings discussions and, due to this fact, the inclusion of those non-GAAP monetary measures will present consistency in our monetary reporting. Administration could, nonetheless, make the most of different measures as an instance efficiency sooner or later. Buyers are inspired to evaluate the reconciliation of those non-GAAP measures to their most straight comparable GAAP monetary measures. A reconciliation of our non-GAAP monetary measures to their most straight comparable GAAP measures has been supplied within the monetary assertion tables included above on this press launch.

These non-GAAP measures exclude stock-based compensation, amortization of acquired intangible property, acquisition associated bills, non-cash curiosity expense for the amortization of debt low cost debt issuance prices, loss on early extinguishment of 2022 Convertible Notes, achieve or loss on strategic investments, achieve or loss on fairness methodology funding, achieve or loss on disposal of fastened property, and account for the revenue tax results of the exclusion of those non-GAAP objects. We imagine traders could need to incorporate the consequences of these things with a view to evaluate our monetary efficiency with that of different corporations and between time intervals:

A.	Inventory-based compensation is a non-cash expense accounted for in accordance with FASB ASC Subject 718. We imagine that the exclusion of stock-based compensation expense permits for monetary outcomes which are extra indicative of our operational efficiency and supply for a helpful comparability of our working outcomes to prior intervals and to our peer corporations as a result of stock-based compensation expense varies from interval to interval and firm to firm as a result of things like differing valuation methodologies and modifications in inventory value.

B.	Expense for the amortization of acquired intangible property, excluding backlog acquired intangible property amortized as contra income, is excluded from non-GAAP expense and revenue measures as HubSpot views amortization of those property as arising from pre-acquisition actions decided on the time of an acquisition. Whereas these intangible property are evaluated for impairment usually, amortization of the price of bought intangibles is a non-cash expense that isn’t usually affected by operations throughout any explicit interval. Valuation and subsequent amortization of intangible property will also be inconsistent in quantity and frequency as a result of they’ll considerably range primarily based on the timing and dimension of acquisitions and the inherently subjective nature of the diploma to which a purchase order value is allotted to intangible property. We imagine that the exclusion of this amortization expense gives for a helpful comparability of our working outcomes to prior intervals, for which now we have traditionally excluded amortization expense, and to our peer corporations, which generally exclude acquired intangible asset amortization. It is very important word that though we exclude amortization of acquired intangible property from our non-GAAP expense and revenue measures, income generated from such intangibles is included inside our non-GAAP revenue measures. Using these intangible property contributed to our revenues earned through the intervals offered and can contribute to future intervals as properly.

C.	Acquisition associated bills, equivalent to transaction prices and retention funds, are bills that aren’t essentially reflective of operational efficiency throughout a interval. We imagine that the exclusion of those bills gives for a helpful comparability of our working outcomes to prior intervals and to our peer corporations, which generally exclude these bills.

D.	In Could 2017, the Firm issued $400 million of convertible notes due in 2022 with a coupon rate of interest of 0.25%. In June 2020, the Firm issued $460 million of convertible notes due in 2025 with a coupon rate of interest of 0.375%. The imputed rates of interest of the convertible senior notes had been roughly 6.87% and 5.71%, respectively. This can be a results of the debt low cost recorded for the conversion characteristic that’s required to be individually accounted for as fairness, and debt issuance prices, which scale back the carrying worth of the convertible debt instrument. The debt low cost is amortized as curiosity expense along with the issuance prices of the debt. The expense for the amortization of debt low cost and debt issuance prices is a non-cash merchandise, and we imagine the exclusion of this non-cash curiosity expense gives for a helpful comparability of our working outcomes to prior intervals and to our peer corporations.

	Within the quarter ended December 31, 2021, the Firm settled $2.8 million of the principal steadiness of the 2022 Notes in money and within the 12 months ended December 31, 2021, the Firm settled $106.5 million of the principal steadiness of the 2022 Notes in money. In reference to these settlements, the Firm recorded a $70 thousand and $4.9 million loss on early extinguishment of debt within the quarter and 12 months ended December 31, 2021. The loss represents the distinction between the honest worth and carrying worth of the debt extinguished. The quantity of this cost could also be inconsistent in dimension and varies relying on the timing of the repurchase of debt. In reference to the debt extinguishment, roughly $2.0 million and $26.4 million of the reimbursement of convertible notes that’s attributable to debt low cost was categorized as money utilized in working actions within the quarter and 12 months ended December 31, 2021. The Firm has repaid, and can proceed to repay early conversions of those notes till the maturity of those notes in June 2022 and 2025. These actions aren’t thought-about reflective of our recurring core enterprise working outcomes. As such, we imagine the exclusion of those bills and funds gives for a helpful comparability of our working outcomes to prior intervals and to our peer corporations.

E.	Strategic investments encompass non-controlling fairness investments in privately held corporations. The popularity of positive factors or losses can range considerably throughout intervals and we don’t view them to be indicative of our basic working actions and imagine the exclusion of positive factors or losses gives for a helpful comparability of our working outcomes to prior intervals and to our peer corporations.

F.	We made a contribution to the Black Financial Improvement Fund (the “investee”) managed by the Native Initiatives Assist Company and have dedicated to make further capital contributions. We account for this funding beneath the fairness methodology of accounting. The proportionate share of our fairness methodology investee’s web earnings have been excluded with a view to present a comparable view of our working outcomes to prior intervals and to our peer corporations. We imagine this exercise isn’t reflective of our recurring core enterprise working outcomes.

G.	Achieve on termination of working leases outcomes from early lease terminations and associated enchancment reimbursements from landlords being recorded as revenue. Loss on fastened property outcome from the disposal of property and tools related to early lease terminations. As we usually fulfill our obligations for the total lease time period and use these property for his or her full helpful lives, we imagine these actions aren’t thought-about reflective of our recurring core enterprise working outcomes. As such, we imagine the exclusion of those transactions gives for a helpful comparability of our working outcomes to prior intervals and to our peer corporations.

H.	The results of revenue taxes on non-GAAP objects mirror a set long-term projected tax charge of 20% to offer higher consistency throughout reporting intervals. To find out this long-term non-GAAP tax charge, we exclude the influence of different non-GAAP changes and have in mind different components equivalent to our present working construction and current tax positions in numerous jurisdictions. We are going to periodically reevaluate this tax charge, as vital, for important occasions equivalent to related tax regulation modifications and materials modifications in our forecasted geographic earnings combine.

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