Hubspot Inc 8-K, filed Aug 2, 2023

Hubspot Inc (HUBS)

8-K 2023-08-02 For: 2023-08-02

View Original

Added on April 04, 2026

About this 8-K

Hubspot Inc filed this 8-K on August 2, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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

	Two Canal Park Cambridge, Massachusetts 02141 (Address of Principal Executive Offices)


☐	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		Press Release of HubSpot, Inc. dated August 2, 2023 furnished herewith
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	HubSpot, Inc.

August 2, 2023	By:	/s/ Kate Bueker
		Name: Kate Bueker
		Title: Chief Financial Officer


	June 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	457,218		$	331,022
Short-term investments		1,071,927			1,081,662
Accounts receivable		206,697			226,849
Deferred commission expense		82,158			70,992
Prepaid expenses and other current assets		89,845			44,074
Total current assets		1,907,845			1,754,599
Long-term investments		146,245			112,791
Property and equipment, net		104,227			105,227
Capitalized software development costs, net		86,548			63,790
Right-of-use assets		262,759			319,304
Deferred commission expense, net of current portion		93,277			66,559
Other assets		65,876			58,795
Intangible assets, net		15,854			17,446
Goodwill		46,464			46,227
Total assets	$	2,729,095		$	2,544,738
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,133		$	20,883
Accrued compensation costs		69,758			62,846
Accrued expenses and other current liabilities		157,485			102,122
Operating lease liabilities		31,145			35,928
Deferred revenue		585,934			539,874
Total current liabilities		847,455			761,653
Operating lease liabilities, net of current portion		313,632			316,184
Deferred revenue, net of current portion		4,568			5,904
Other long-term liabilities		25,768			14,546
Convertible senior notes		455,207			454,227
Total liabilities		1,646,630			1,552,514
Stockholders’ equity:
Common stock		50			49
Additional paid-in capital		1,890,409			1,647,446
Accumulated other comprehensive loss		(8,385	)		(12,890	)
Accumulated deficit		(799,609	)		(642,381	)
Total stockholders’ equity		1,082,465			992,224
Total liabilities and stockholders’ equity	$	2,729,095		$	2,544,738


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Revenues:
Subscription	$	517,678		$	412,401		$	1,007,421		$	797,356
Professional services and other		11,460			9,354			23,337			19,998
Total revenue		529,138			421,755			1,030,758			817,354
Cost of revenues:
Subscription		73,824			64,431			142,163			123,816
Professional services and other		13,462			14,500			27,169			28,053
Total cost of revenues		87,286			78,931			169,332			151,869
Gross profit		441,852			342,824			861,426			665,485
Operating expenses:
Research and development		169,955			118,914			297,639			211,650
Sales and marketing		265,294			224,262			515,971			421,396
General and administrative		61,222			51,898			118,630			95,844
Restructuring		63,880		—				92,450		—
Total operating expenses		560,351			395,074			1,024,690			728,890
Loss from operations		(118,499	)		(52,250	)		(163,264	)		(63,405	)
Other expense:
Interest income		13,542			2,050			24,013			2,564
Interest expense		(937	)		(949	)		(1,867	)		(1,898	)
Other income (expense)		330			(3,091	)		(465	)		602
Total other expense		12,935			(1,990	)		21,681			1,268
Loss before income tax expense		(105,564	)		(54,240	)		(141,583	)		(62,137	)
Income tax expense		(13,382	)		(2,121	)		(15,645	)		(3,565	)
Net loss	$	(118,946	)	$	(56,361	)	$	(157,228	)	$	(65,702	)
Net loss per share, basic and diluted	$	(2.39	)	$	(1.18	)	$	(3.17	)	$	(1.38	)
Weighted average common shares used in computing basic and diluted net loss per share:		49,703			47,815			49,550			47,697


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Operating Activities:
Net loss		(118,946	)	$	(56,361	)	$	(157,228	)	$	(65,702	)
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities
Depreciation and amortization		16,429			14,265			32,999			27,063
Stock-based compensation		128,003			81,165			211,038			126,868
Restructuring charges		62,657		—				64,938		—
Loss (gain) on strategic investments	—				21		—				(4,200	)
Provision for (benefit from) deferred income taxes		4,755			(152	)		4,802			(398	)
Amortization of debt discount and issuance costs		496			510			980			1,017
Accretion of bond discount		(10,769	)		(735	)		(18,777	)		(150	)
Unrealized currency translation		236			1,277			(122	)		1,980
Changes in assets and liabilities
Accounts receivable		(8,991	)		(17,901	)		21,626			(14,349	)
Prepaid expenses and other assets		(27,028	)		(17,984	)		(47,445	)		(21,911	)
Deferred commission expense		(18,495	)		(5,390	)		(37,034	)		(13,744	)
Right-of-use assets		12,489			6,919			20,972			13,447
Accounts payable		59			5,335			(17,814	)		8,960
Accrued expenses and other liabilities		31,011			15,954			55,232			23,089
Operating lease liabilities		(8,156	)		(9,012	)		(17,985	)		(11,330	)
Deferred revenue		12,793			23,010			41,431			52,506
Net cash and cash equivalents provided by operating activities		76,543			40,921			157,613			123,146
Investing Activities:
Purchases of investments		(369,117	)		(428,516	)		(731,363	)		(864,063	)
Maturities of investments		441,867			220,159			729,834			625,378
Sale of investments	—				124,998		—				124,998
Purchases of property and equipment		(10,879	)		(8,332	)		(14,189	)		(18,272	)
Purchases of strategic investments	—				(8,827	)		(6,000	)		(13,873	)
Purchases of intangible assets	—				(10,000	)	—				(10,000	)
Equity method investment	—				(250	)	—				(250	)
Capitalization of software development costs		(16,473	)		(10,209	)		(31,595	)		(19,931	)
Net cash and cash equivalents provided by (used in) investing activities		45,398			(120,977	)		(53,313	)		(176,013	)
Financing Activities:
Proceeds from settlement of Convertible Note Hedges related to the 2022 Convertible Notes	—				60,483		—				60,483
Payment for settlement of 2022 Convertible Notes	—				(79,807	)	—				(79,807	)
Repayment of 2025 Convertible Notes attributable to the principal	—			—			—				(1,619	)
Employee taxes paid related to the net share settlement of stock-based awards		(2,904	)		(3,410	)		(4,102	)		(7,764	)
Proceeds related to the issuance of common stock under stock plans		13,296			7,847			24,550			19,699
Net cash and cash equivalents provided by (used in) financing activities		10,392			(14,887	)		20,448			(9,008	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(274	)		(7,826	)		1,448			(9,474	)
Net (decrease) increase in cash, cash equivalents and restricted cash		132,059			(102,769	)		126,196			(71,349	)
Cash, cash equivalents and restricted cash, beginning of period		328,312			411,462			334,175			380,042
Cash, cash equivalents and restricted cash, end of period	$	460,371		$	308,693		$	460,371		$	308,693


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
GAAP operating loss	$	(118,499	)	$	(52,250	)	$	(163,264	)	$	(63,405	)
Stock-based compensation		128,003			81,165			211,038			126,868
Amortization of acquired intangible assets		851			752			1,696			1,163
Acquisition related expenses		—			(281	)		—			(288	)
Restructuring charges		63,880			—			92,450			—
Non-GAAP operating income	$	74,235		$	29,386		$	141,920		$	64,338

GAAP operating margin		(22.4	%)		(12.4	%)		(15.8	%)		(7.8	%)
Non-GAAP operating margin		14.0	%		7.0	%		13.8	%		7.9	%


Reconciliation of non-GAAP operating cash flow
(in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
GAAP net cash and cash equivalents provided by operating activities	$	76,543	$	40,921	$	157,613	$	123,146
Payment of restructuring charges		10,425		—		32,939		—
Non-GAAP operating cash flow	$	86,968	$	40,921	$	190,552	$	123,146


Reconciliation of free cash flow
(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
GAAP net cash and cash equivalents provided by operating activities	$	76,543		$	40,921		$	157,613		$	123,146
Purchases of property and equipment		(10,879	)		(8,332	)		(14,189	)		(18,272	)
Capitalization of software development costs		(16,473	)		(10,209	)		(31,595	)		(19,931	)
Payment of restructuring charges		10,425			—			32,939			—
Free cash flow	$	59,616		$	22,380		$	144,768		$	84,943


Reconciliation of forecasted non-GAAP operating income (in thousands, except percentages)
	Three Months Ended September 30, 2023		Year Ended December 31, 2023
GAAP operating income range	($50,376)		($257,045)
Stock-based compensation		115,531		452,212
Amortization of acquired intangible assets		845		3,383
Restructuring charges	1,000-3,000		94,450-98,450
Non-GAAP operating income range	$67,000-$69,000		$293,000-$297,000


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, 2023		Year Ended December 31, 2023
GAAP net loss range	($39,678)-($40,428)		($229,623)-($230,498)
Stock-based compensation		115,531		452,212
Amortization of acquired intangible assets		845		3,383
Non-cash interest expense for amortization of debt issuance costs		497		1,985
Restructuring charges	1,000-3,000		94,450-98,450
Gain on equity method investment		—		(66	)
Income tax effects of non-GAAP items	(13,895)-(14,145)		(48,591)-(49,216)
Non-GAAP net income range	$64,300-$65,300		$273,750-$276,250

GAAP net income per basic and diluted share	($0.79)-($0.81)		($4.60)-($4.63)
Non-GAAP net income per diluted share	$1.22-$1.24		$5.24-$5.29


Weighted average common shares used in computing GAAP basic and diluted net loss per share:		50,074		49,896
Weighted average common shares used in computing non-GAAP diluted net loss per share:		52,597		52,270


(d)	Exhibits


	Three Months Ended June 30,
	2023															2022
	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	$	73,824		$	13,462		$	169,955		$	265,294		$	61,222		$	64,431		$	14,500		$	118,914		$	224,262		$	51,898
Stock -based compensation		(3,516	)		(1,459	)		(64,060	)		(38,625	)		(20,343	)		(2,383	)		(1,248	)		(31,698	)		(32,183	)		(13,653	)
Amortization of acquired intangible assets		(405	)		—			—			(446	)		—			(306	)		—			—			(446	)		—
Acquisition/disposition related income (expenses)		—			—			—			—			—			—			—			300			—			(19	)
Non-GAAP expense	$	69,903		$	12,003		$	105,895		$	226,223		$	40,879		$	61,742		$	13,252		$	87,516		$	191,633		$	38,226

GAAP expense as a percentage of revenue		14.0	%		2.5	%		32.1	%		50.1	%		11.6	%		15.3	%		3.4	%		28.2	%		53.2	%		12.3	%
Non-GAAP expense as a percentage of revenue		13.2	%		2.3	%		20.0	%		42.8	%		7.7	%		14.6	%		3.1	%		20.8	%		45.4	%		9.1	%


	Six Months Ended June 30,
	2023															2022
	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	$	142,163		$	27,169		$	297,639		$	515,971		$	118,630		$	123,816		$	28,053		$	211,650		$	421,396		$	95,844
Stock -based compensation		(6,259	)		(2,546	)		(97,384	)		(68,794	)		(36,055	)		(4,206	)		(2,083	)		(48,684	)		(49,052	)		(22,843	)
Amortization of acquired intangible assets		(804	)		—			—			(892	)		—			(628	)		—			—			(535	)		—
Acquisition/disposition related income (expenses)		—			—			—			—			—			—			—			300			—			(12	)
Non-GAAP expense	$	135,100		$	24,623		$	200,255		$	446,285		$	82,575		$	118,982		$	25,970		$	163,266		$	371,809		$	72,989

GAAP expense as a percentage of revenue		13.8	%		2.6	%		28.9	%		50.1	%		11.5	%		15.1	%		3.4	%		25.9	%		51.6	%		11.7	%
Non-GAAP expense as a percentage of revenue		13.1	%		2.4	%		19.4	%		43.3	%		8.0	%		14.6	%		3.2	%		20.0	%		45.5	%		8.9	%


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
GAAP subscription margin	$	443,854		$	347,970		$	865,258		$	673,540
Stock-based compensation		3,516			2,383			6,259			4,206
Amortization of acquired intangible assets		405			306			804			628
Non-GAAP subscription margin	$	447,775		$	350,659		$	872,321		$	678,374

GAAP subscription margin percentage		85.7	%		84.4	%		85.9	%		84.5	%
Non-GAAP subscription margin percentage		86.5	%		85.0	%		86.6	%		85.1	%