Kate Bueker: Yes. Why don’t I just sort of talk about how we approach guidance. As always, we endeavor to put forward guidance that we have a high-degree of confidence, that we can meet. We have a rigorous forecasting process. We have a rigorous guidance process that we’ve been using consistently for a very long time. We do a lot of scenario analysis to try to land on a guidance that we feel confident in our ability to achieve. And, frankly that reflects all of the risks and upsides that we see.
Operator: Thank you. Our next question today is from the line of Brian Peterson of Raymond James. Please go ahead. Your line is open.
Johnathan McCary: Thank you. This is Johnathan McCary on for Brian today. So, you mentioned strength in sales and marketing specifically as front doors this quarter. We heard a little bit last quarter of some of the increased traction in Service Hub as an on ramp and heard I’ve heard that from partners as well. So, just curious if that’s still a trend you’re seeing for service throughout the conversations in the last 90 days? Thanks.
Yamini Rangan: Yes. Certainly, I think, we when we think about front doors, we see three front doors, Marketing, Sales Hub, and then Multi-Hub. And, if you look at the most common combination in Multi-Hub, it is marketing, sales and service. So, we’re beginning to see our customers kind of adopt the full platform and start with, multiple hubs. And specifically, in terms of, Service Hub, we made excellent progress this quarter, right? We officially re-launched Service Hub as part of our spotlight, and it’s been extremely well received. Kudos, to the product team for making excellent progress there. And, last year was a big year for Service Hub Pro. We did a ton of work to make the pro tier very powerful. And this year, the focus has been on making all tiers of Service Hub very competitive and powerful.
And, if you look specifically at the Spring Spotlight, we launched advanced SLAs, more robust routing, and support management tools, and all of these are really aimed at serving our upmarket customers. So, the enterprise tier just got even better. And then, we also, for the first time, launched our customer success workspace. This is for CSM or customer success persona, and we want to provide a unified workspace for them to be able to manage their entire book and also be a conduit for connecting the sales teams and the support teams together. So, I think that’s a huge, another area. And, as always we’ve been thinking about how do we, like, leapfrog Service Hub with AI capabilities, and we certainly see our customers adopt our AI features within Service Hub.
So, overall, I’m very pleased with the momentum in Service Hub, both from a product perspective as well as from a customer adoption perspective, and really happy with the traction we see there.
Operator: Thank you. Our next question is from the line of Michael Vidovic of KeyCorp. Please go ahead. Your line is now open.
Michael Vidovic: Hi. This is Mike on for Jackson Ader. Just quickly on the partnerships and your channel partners, you talked about seeing fewer partner sourced deals this quarter and having to rely more on direct sales sourcing. But, I guess, what are you seeing in terms of the different dynamics between, call it, your direct sales motion and your channel direct and your channel sales motion as it relates to the pricing change? Thanks.
Yamini Rangan: Yes. I think on the pricing change, overall, not, nothing specific in terms of the change between partner as well as direct sales. Now, in terms of, what we made as a comment in earlier for partner source deals. On the partner side, we’ve seen great success with our co-selling motion. And, what that means is partners as well as our direct reps work together, and that co-selling motion is up 65% year-over-year. Now, on the flip side, when that co-selling motion is really strong, then partners spend a little bit of time, less time in generating and sourcing their own deals. And so, we always want to have the right balance between that co-selling as well as partner sourcing, which is exactly what we are focused on right now.
So, we have rolled out partner enablement. We have rolled out a ton of resources to make sure that our partners and our direct teams work in a way where both the co-selling as well as the partner sourcing is in balance, and we’re certainly seeing that in Q2.
Operator: Thank you. And, with no further time for any questions, this will conclude the HubSpot First Quarter 2024 Earnings Call. Thank you all for joining. You may now disconnect your lines.
