HubSpot, Inc. (NYSE:HUBS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 04:30 pm ET


HubSpot, Inc. (NYSE:HUBS) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the HubSpot Q4 2019 Earnings Conference Call. [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.

Charles MacGlashing

Thanks operator. Good afternoon and welcome to HubSpot's fourth quarter and full year 2019 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 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 first fiscal quarter and full year 2020. 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 our Form 10-Q which was filed with the SEC on November 5, 2019 for a discussion of the risks and uncertainties that could cause actual results 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 such measures can be found within our fourth quarter 2019 earnings press release in the Investor Relations section of our website.

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

Brian Halligan

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

I'm really happy with the way the HubSpot team closed out the year. We grew full year and Q4 constant currency revenue by 34% and 31%. And we expanded full year non-GAAP operating margins by 2 points to just over 8%. Total customers surpassed 73,000, up 30% year-over-year. Our multi-product adoption grew to nearly 30,000 customers.

That said, while I'm pleased with our 2019 financial results, I'm exceptionally proud of how it became the year of the customer to HubSpot. One of our key principles as a company is to aim to do the right thing even when it's hard. Sometimes this meant taking a couple of steps back so we can move multiple steps forward. We invested heavily in our products this year with an emphasis on