HubSpot, Inc. (NYSE:HUBS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 04:30 pm ET

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HubSpot, Inc. (NYSE:HUBS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the HubSpot Q2 2020 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.

Executive
Charles MacGlashing

Thanks, operator. Good afternoon, and welcome to HubSpot's Second Quarter 2020 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 those 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 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 will be filed with the SEC this afternoon 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 such measures can be found within our second quarter 2020 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.

Executive
Brian Halligan

Thanks, Chuck. Good afternoon, folks. Thank you for joining us today. The world has been through a lot in the last few months. Collectively, we're still weathering the storm, but I'm happy to share progress HubSpot's made over the last quarter. Constant currency revenue growth was 26% in Q2, and non-GAAP operating margin was 9%. Total customers grew 34% year-over-year, surpassing 86,000, while multiproduct adoption continue to grow nicely, representing over 38,000 customers. We were fortunate back in Q1 to have some wind in our backs at her strong start to the year. Nevertheless, the onslaught of the global pandemic was felt throughout our company and our customer base. And much of our spring was focused on helping our customers and partners respond to the economic downturn. Today, I'm thankful to say that the disruptive headwinds we faced early in Q2 have eased and might have even begun to shift a bit in our