Hubspot is one of most interesting SaaS success stories
Fighting in one of most competitive spaces, in the toughest segment (SMB) .. it still has won. From IPO'ing at $750m to an $18B leader today!
What can we learn from when Hubspot crossed $1B in ARR?
5 Interesting Things:
Fighting in one of most competitive spaces, in the toughest segment (SMB) .. it still has won. From IPO'ing at $750m to an $18B leader today!
What can we learn from when Hubspot crossed $1B in ARR?
5 Interesting Things:
#1. Even at $1B ARR, freemium and free trials remained the source of 60% of Hubspot's customers. This is especially interesting since they didn't star there.
Yes, freemium can scale.
Yes, freemium can scale.
#2. International revenues were 40% of Hubspot's revenue at $1B ARR and accelerating.
If you find pockets of growth outside the U.S. or your home market, embrace them.
If you find pockets of growth outside the U.S. or your home market, embrace them.
#3. Hubspot still managed to grow 30% at $1B ARR, even with 100% NRR.
Getting NRR much past 100% with SMBs is tough. Even 100% can be tough.
So Hubspot had to bring its growth entirely through net new customers. Much harder than other leaders.
But it can be done.
Getting NRR much past 100% with SMBs is tough. Even 100% can be tough.
So Hubspot had to bring its growth entirely through net new customers. Much harder than other leaders.
But it can be done.
#4. Hubspot kept its ACV fairly constant at $10k even through $1B in ARR.
Many of you will drive your ACV up over time, and that is a proven way to scale and hit the plan.
But SMBs are price-sensitive, so Hubspot kept its ACVs fairly constant.
More value for same $$$.
Many of you will drive your ACV up over time, and that is a proven way to scale and hit the plan.
But SMBs are price-sensitive, so Hubspot kept its ACVs fairly constant.
More value for same $$$.
#5. 40% of Hubspot's revenue at $1B came from partners and the channel.
We same similar success here with RingCentral, Shopify, Atlassian and others.
Don't dismiss 3d parties as effective distribution channels in SaaS.
We same similar success here with RingCentral, Shopify, Atlassian and others.
Don't dismiss 3d parties as effective distribution channels in SaaS.