HubSpot, Inc. (NYSE:HUBS) Q3 2019 Earnings Conference Call Transcript

Nov 05, 2019 • 04:30 pm ET

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HubSpot, Inc. (NYSE:HUBS) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the HubSpot Q3 2019 Earnings Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Chuck MacGlashing, Head of Investor Relations. Thank you. Please go ahead.

Executive
Charles MacGlashing

Thanks, operator. Good afternoon, and welcome to HubSpot's third quarter earnings conference call. Today, we'll be discussing the results announced in the press release that was issued after the market closed.

With me on the call this afternoon is Brian Halligan, our Chief Executive Officer and Chairman; and Kate Bueker, our Chief Financial Officer.

Before we start, I'd like to draw your attention to the Safe Harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward looking within the meaning of Section 27A of the Securities Exchange Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

All statements other than statements [Phonetic] of historical fact are forward-looking statements, including statements regarding management's expectations of future, financial and operational performance and operational expenditures, expected growth and business outlook, including our financial guidance for the third fiscal quarter of 2019.

All statements other than our of historical fact are forward-looking statements, including statements regarding management's expectations of future financial and operational performance and operational expenditures, expected growth and business outlook including our financial guidance for the 4th fiscal quarter of 2019.

Forward-looking statements reflect our views only as of today, and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please refer to the cautionary language in today's press release and to our Form 10-Q, which was filed with the SEC on August 6, 2019, for a discussion of the risks and uncertainties that could cause actual results to differ materially from expectations.

During the course of today's call, we'll refer to certain non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found within our third quarter 2019 earnings press release in the Investor Relations section of our website at hubspot.com.

Now, it's my pleasure to turn over the call to HubSpot's CEO and Chairman, Brian Halligan.

Executive
Brian Halligan

Thanks, Chuck. Good afternoon, folks. Thank you for joining us today as we review HubSpot's third quarter 2019 earnings results.

Q3 was another good quarter for HubSpot with 33% revenue growth in constant currency, 6% non-GAAP operating margin, 31% customer growth, bringing our total customers to nearly 69,000. In addition, we improved some of the operating efficiency over the last few months, including re-accelerating hiring.

I wanted to tell you a little bit about how we see HubSpot these days. 2018 we had a lot of products and build-out this