Hubspot Inc 8-K, filed Aug 4, 2021

Hubspot Inc (HUBS)

8-K 2021-08-04 For: 2021-08-04

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Added on April 04, 2026

About this 8-K

Hubspot Inc filed this 8-K on August 4, 2021.

Items reported

Item 2.02: Financial results
Item 5.02: Director or officer change, or executive pay
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Delaware	001-36680	20-2632791
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

25 First Street, Cambridge, Massachusetts		02141
(Address of Principal Executive Offices)		(Zip Code)


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Exhibit No.		Description

99.1 99.2		Press Release of HubSpot, Inc. dated August 4, 2021 furnished herewith Blog Post of HubSpot, Inc. on August 4, 2021, furnished herewith
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	HubSpot, Inc.

August 4, 2021	By:	/s/ Kate Bueker
		Name: Kate Bueker
		Title: Chief Financial Officer




	June 30,			December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	338,336		$	378,123
Short-term investments		875,395			873,073
Accounts receivable		117,030			126,433
Deferred commission expense		52,941			44,576
Prepaid expenses and other current assets		42,626			34,716
Total current assets		1,426,328			1,456,921
Long-term investments		83,762			30,697
Property and equipment, net		97,885			101,123
Capitalized software development costs, net		33,513			24,943
Right-of-use assets		257,323			275,893
Deferred commission expense, net of current portion		35,211			28,296
Other assets		25,157			13,893
Intangible assets, net		11,644			10,282
Goodwill		47,789			31,318
Total assets	$	2,018,612		$	1,973,366
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	12,178		$	13,540
Accrued compensation costs		51,986			44,054
Accrued expenses and other current liabilities		44,744			37,184
Convertible senior notes		64,762			7,837
Operating lease liabilities		31,410			30,020
Deferred revenue		358,830			312,866
Total current liabilities		563,910			445,501
Operating lease liabilities, net of current portion		259,696			279,664
Deferred revenue, net of current portion		3,403			3,636
Other long-term liabilities		12,056			10,811
Convertible senior notes, net of current portion		373,863			471,099
Total liabilities		1,212,928			1,210,711
Stockholders’ equity:
Common stock		47			46
Additional paid-in capital		1,334,301			1,241,167
Accumulated other comprehensive income		2,228			4,603
Accumulated deficit		(530,892	)		(483,161	)
Total stockholders’ equity		805,684			762,655
Total liabilities and stockholders’ equity	$	2,018,612		$	1,973,366


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Revenues:
Subscription	$	300,423		$	196,415		$	570,686		$	387,643
Professional services and other		10,365			7,193			21,467			14,932
Total revenue		310,788			203,608			592,153			402,575
Cost of revenues:
Subscription		51,134			30,400			94,986			60,135
Professional services and other		11,743			8,377			22,625			16,926
Total cost of revenues		62,877			38,777			117,611			77,061
Gross profit		247,911			164,831			474,542			325,514
Operating expenses:
Research and development		72,104			49,372			140,500			95,573
Sales and marketing		157,799			102,600			298,817			204,928
General and administrative		34,610			26,484			66,860			52,741
Total operating expenses		264,513			178,456			506,177			353,242
Loss from operations		(16,602	)		(13,625	)		(31,635	)		(27,728	)
Other expense:
Interest income		341			2,135			816			6,192
Interest expense		(7,179	)		(16,809	)		(16,578	)		(22,761	)
Other income (expense)		528			(91	)		1,188			(1,143	)
Total other expense		(6,310	)		(14,765	)		(14,574	)		(17,712	)
Loss before income tax expense		(22,912	)		(28,390	)		(46,209	)		(45,440	)
Income tax benefit (expense)		(1,660	)		(1,011	)		(1,522	)		(1,677	)
Net loss	$	(24,572	)	$	(29,401	)	$	(47,731	)	$	(47,117	)
Net loss per share, basic and diluted	$	(0.53	)	$	(0.67	)	$	(1.02	)	$	(1.08	)
Weighted average common shares used in computing basic and diluted net loss per share:		46,777			44,130			46,603			43,703


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
GAAP operating loss	$	(16,602	)	$	(13,625	)	$	(31,635	)	$	(27,728	)
Stock-based compensation		43,433			31,374			75,856			58,837
Amortization of acquired intangible assets		337			899			682			1,798
Acquisition related expenses		372			518			1,567			851
Non-GAAP operating income	$	27,540		$	19,166		$	46,470		$	33,758

GAAP operating margin		(5.3	%)		(6.7	%)		(5.3	%)		(6.9	%)
Non-GAAP operating margin		8.9	%		9.4	%		7.8	%		8.4	%


Reconciliation of free cash flow
(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
GAAP net cash and cash equivalents provided by (used in) operating activities	$	38,191		$	(33,690	)	$	100,891		$	(10,679	)
Purchases of property and equipment		(6,779	)		(8,799	)		(10,746	)		(19,897	)
Capitalization of software development costs		(9,080	)		(5,394	)		(16,421	)		(10,163	)
Repayment of 2022 Convertible Notes attributable to the debt discount		3,223			48,675			13,028			48,674
Free cash flow	$	25,555		$	792		$	86,752		$	7,935


Reconciliation of forecasted non-GAAP operating income (in thousands, except percentages)
	Three Months Ended September 30, 2021		Year Ended December 31, 2021
GAAP operating income range	($13,401)-($11,401)		($54,066)-($52,066)
Stock-based compensation		39,740		157,720
Amortization of acquired intangible assets		325		1,330
Acquisition related expenses		336		2,016
Non-GAAP operating income range	$27,000-$29,000		$107,000-$109,000


Reconciliation of forecasted non-GAAP net income and non-GAAP net income per share (in thousands, except per share amounts)

	Three Months Ended September 30, 2021		Year Ended December 31, 2021
GAAP net loss range	($20,790)-($19,540)		($84,157)-($82,907)
Stock-based compensation		39,740		157,720
Amortization of acquired intangible assets		325		1,330
Acquisition related expenses		336		2,016
Non-cash interest expense for amortization of debt discount and debt issuance costs		5,970		24,605
Income tax effects of non-GAAP items	(4,081)-(4,331)		(16,914)-(17,164)
Non-GAAP net income range	$21,500-$22,500		$84,600-$85,600

GAAP net income per basic and diluted share	($0.44)-($0.42)		($1.80)-($1.77)
Non-GAAP net income per diluted share	$0.42-$0.44		$1.67-$1.69


Weighted average common shares used in computing GAAP basic and diluted net loss per share:		46,992		46,856

Weighted average common shares used in computing non-GAAP diluted net loss per share:		50,607		50,516


(d)	Exhibits


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Operating Activities:
Net loss		(24,572	)	$	(29,401	)	$	(47,731	)	$	(47,117	)
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities
Depreciation and amortization		10,528			8,972			21,736			17,683
Stock-based compensation		43,433			31,374			75,856			58,837
Loss on early extinguishment of 2022 Convertible Notes		682			10,493			3,088			10,493
Repayment of 2022 Convertible Notes attributable to the debt discount		(3,223	)		(48,675	)		(13,028	)		(48,675	)
Gain on strategic investments		(1,022	)	—				(1,022	)	—
Benefit from deferred income taxes		(114	)		(165	)		(1,120	)		(422	)
Amortization of debt discount and issuance costs		6,019			5,959			12,512			11,662
Amortization (accretion) of bond discount		1,155			(1,336	)		1,670			(3,490	)
Unrealized currency translation		329			(597	)		280			184
Changes in assets and liabilities
Accounts receivable		(7,531	)		(3,850	)		8,944			5,930
Prepaid expenses and other assets		(10,409	)		(5,313	)		(7,694	)		(20,420	)
Deferred commission expense		(10,097	)		(4,314	)		(16,402	)		(5,837	)
Right-of-use assets		8,193			7,675			18,547			13,398
Accounts payable		(5,867	)		342			(1,269	)		1,837
Accrued expenses and other liabilities		17,962			5,883			15,533			444
Operating lease liabilities		(9,102	)		(7,033	)		(18,374	)		(12,314	)
Deferred revenue		21,827			(3,704	)		49,365			7,128
Net cash and cash equivalents provided by (used in) operating activities		38,191			(33,690	)		100,891			(10,679	)
Investing Activities:
Purchases of investments		(291,775	)		(527,139	)		(654,063	)		(967,028	)
Maturities of investments		219,684			327,127			596,602			710,002
Sale of investments	—				10,932		—				10,932
Equity method investment		(792	)	—				(3,100	)	—
Acquisition of a business, net of cash acquired	—			—				(16,810	)	—
Purchases of property and equipment		(6,779	)		(8,799	)		(10,746	)		(19,897	)
Capitalization of software development costs		(9,080	)		(5,394	)		(16,421	)		(10,163	)
Purchases of strategic investments		(4,352	)		(1,000	)		(6,202	)		(1,000	)
Net cash and cash equivalents used in investing activities		(93,094	)		(204,273	)		(110,740	)		(277,154	)
Financing Activities:
Proceeds from issuance of 2025 Convertible Notes, net of issuance costs paid of $9.4 million	—				450,614		—				450,614
Proceeds from settlement of Convertible Note Hedges related to the 2022 Convertible Notes		2			362,492			725			362,492
Payments for settlement of Warrants related to the 2022 Convertible Notes	—				(327,543	)	—				(327,543	)
Repayment of 2022 Convertible Notes attributable to the principal		(9,509	)		(234,366	)		(45,409	)		(234,366	)


	Three Months Ended June 30,
	2021															2020
	COS, Subs-cription			COS, Prof. services & other			R&D			S&M			G&A			COS, Subs-cription			COS, Prof. services & other			R&D			S&M			G&A
GAAP expense	$	51,134		$	11,743		$	72,104		$	157,799		$	34,610		$	30,400		$	8,377		$	49,372		$	102,600		$	26,484
Stock -based compensation		(1,582	)		(826	)		(15,080	)		(18,971	)		(6,974	)		(1,075	)		(628	)		(10,111	)		(12,868	)		(6,692	)
Amortization of acquired intangible assets		(236	)		—			—			(101	)		—			(879	)		—			—			(20	)		—
Acquisition related expenses		—			—			(340	)		—			(32	)		—			—			(327	)		—			(191	)
Non-GAAP expense	$	49,316		$	10,917		$	56,684		$	138,727		$	27,604		$	28,446		$	7,749		$	38,934		$	89,712		$	19,601

GAAP expense as a percentage of revenue		16.5	%		3.8	%		23.2	%		50.8	%		11.1	%		14.9	%		4.1	%		24.2	%		50.4	%		13.0	%
Non-GAAP expense as a percentage of revenue		15.9	%		3.5	%		18.2	%		44.6	%		8.9	%		14.0	%		3.8	%		19.1	%		44.1	%		9.6	%


	Six Months Ended June 30,
	2021															2020
	COS, Subs-cription			COS, Prof. services & other			R&D			S&M			G&A			COS, Subs-cription			COS, Prof. services & other			R&D			S&M			G&A
GAAP expense	$	94,986		$	22,625		$	140,500		$	298,817		$	66,860		$	60,135		$	16,926		$	95,573		$	204,928		$	52,741
Stock -based compensation		(2,892	)		(1,523	)		(26,565	)		(32,600	)		(12,276	)		(1,974	)		(1,234	)		(18,819	)		(23,684	)		(13,126	)
Amortization of acquired intangible assets		(475	)		—			—			(207	)		—			(1,759	)		—			—			(39	)		—
Acquisition related expenses		—			—			(684	)		(367	)		(516	)		—			—			(657	)		—			(194	)
Non-GAAP expense	$	91,619		$	21,102		$	113,251		$	265,643		$	54,068		$	56,402		$	15,692		$	76,097		$	181,205		$	39,421

GAAP expense as a percentage of revenue		16.0	%		3.8	%		23.7	%		50.5	%		11.3	%		14.9	%		4.2	%		23.7	%		50.9	%		13.1	%
Non-GAAP expense as a percentage of revenue		15.5	%		3.6	%		19.1	%		44.9	%		9.1	%		14.0	%		3.9	%		18.9	%		45.0	%		9.8	%