We have over 200,000 cumulative users on ChatSpot and more than 20,000 monthly active users, and they’re just wanting to use AI for better researching companies, better preparation before they talk to customers and that’s great. Marketing, not a surprise at all, but the use cases and marketing that we started with the launch of content assistance last year is now getting well integrated into the flow of work. So marketers using generative AI for creating blogs, creating emails, creating titles, taking one content, and then modifying that content into multiple channels, that is becoming very common and we are seeing those use cases get into the daily action. The third and probably not a surprise again, is Service Hub. Our highest usage in terms of features is summarizing conversations and then generating takeaways that feature, and specifically, there’s something called highlight command, and we’re very surprised by this, but being able to highlight a particular text and then change the tone, change the, expand the text, that is getting almost daily usage.
And so, I think we’re seeing areas where it is deeply integrated into the flow of work and we’re beginning to see much more usage. And we have a very robust roadmap of AI features that’s coming up. A lot of those features are in kind of the Pro Plus categories, and I’m really excited to see the usage metrics go up. So a lot of the work that we’re going to be doing this year is looking for those usage patterns.
Operator: Thank you for your question. Next question is from the line of Keith Bachman with BMO. Your line is now open.
Keith Bachman: Yes, many thanks. First, Kate, for you, I wanted to see if you could talk about how we should be thinking about billings growth versus the revenue growth for 2024. There was actually convergence in the December quarter, which was a bit sooner than we were thinking. And so if you could just at least directionally or provide some philosophical points of view about how we should be thinking about the variance, or lack thereof, between the revenue growth guidance that you’ve given and what we should be thinking about billings? And then, Yamini, just for you, if I could sneak another in, I wanted to see if you could revisit on existing customers as it relates to the price change. We’ve gone through the information in detail, and you mentioned that those customers would see a 5% price bump at the time of renewal. But do they make a transition at the time of the renewal to the new price plan or they can continue on, and that’s where the 5% bump happens?
Kate Bueker: Maybe I’ll start. Thanks, Keith. You are right on the constant currency billings and constant currency revenue growth in Q4 were both 21%. There’s a couple of things that helped close the gap between billings and revenue versus what we have seen over the last couple of quarters. The first is that we and you heard Yamini talk about this in her prepared remarks. This was a good quarter for us in terms of big deals, and big deals tend to have longer billing terms, and so it showed up in billings for us in Q4. The other thing that’s notable is December was particularly strong for us. And so from a timing perspective, it helps to drive the closure between billings and revenue. In terms of 2024, we expect that billings growth and revenue growth, again, both in constant currency will actually track pretty close to one another, plus or minus a percent or so from one quarter to the next.
Yamini Rangan: And Keith, on your question in terms of impact of the pricing changes for existing customers, we are being very thoughtful in how we roll this out to our existing customers and couple of maybe first principles as we do this. One, we don’t want the customer experience as they go from one pricing model to another to even be noticeable. That’s one principle. The second is we don’t want any surprises for existing customers as they kind of go through this pricing change. So as I mentioned in March, what we’re launching is only for new customers. The migration for existing customers to the new model, which means having view only seats, having core seats, and having specialized seats, that migration will begin mid-2024 and it will go through 2025 in waves.
So that again, the experience for customers is seamless. They probably won’t even notice that they have been migrated on the back end to support the new deep model. Then at the first renewal after migration, customers can expect up to 5% increase, no more than 5% increase, and that way they have visibility in terms of the level of change that they can expect. We’ve started doing this as part of our ANZ pilot and we’re finding that it’s a very seamless kind of motion for existing customers with plenty of time for them to adjust to kind of the new motion.
Operator: Thank you for your question. Next question is from the line of Kirk Materne with Evercore ISI. Your line is now open.
Kirk Materne: Yes, thanks very much and I’ll echo the congrats on the quarter. Yamini, I just wonder if you just talk a little about the strength in international versus the U.S., meaning, are the trends there either in the high end of the market or the low end of the market any different? Obviously really good growth out of that segment, so why don’t you just unpack that a little bit more? Thanks so much.
Yamini Rangan: Yes. Overall, the strength just is consistent across international and North America. We talked about the bigger trends that we saw in Q4, which is large yield momentum, Sales Hub momentum, multi-hub momentum. We kind of saw the same trends in North America as we saw within the international markets and very consistent with prior quarters.
Operator: Thank you for your question. Next question is from the line of Ken Wong with Oppenheimer. Your line is now open.
Kenneth Wong: Great. Thank you for taking my question, I wanted to maybe dive in on the strength in sort of down marketing Q4, usually that’s more of an enterprise quarter, which you guys did emphasize seeing some strength. Did you guys run any unique plays to try to spark some of that demand in the long tail, or did that catch you guys by surprise as well?
Kate Bueker: Yes. Ken it’s Kate, I’ll start. Look, the success that we saw in the net additions at the low end in Q4 was very much consistent in terms of the themes as we’ve been talking about over the last couple of quarters here. It’s very Starter focused. We continue to see strong top of funnel demand. Frankly, the value proposition of our starter product is just really compelling. We constantly run experiments. There is nothing different in Q4 that I would note versus sort of our normal course. We continue to experiment with pricing and packaging, and we continue to experiment in ways to reduce friction in the motion of a free user becoming a Starter customer.
Operator: Thank you for your question. Next question is from the line of Tyler Radke with Citigroup. Your line is now open.
Tyler Radke: Yes, thanks for taking the question. Wanted to hit on Clearbit, which sounded like there was a modest contribution in Q4, but you are expecting that to ramp up to a point of growth next year. Can you just talk about now that you’ve had a few months post the announcement, kind of what your plans are from a roadmap perspective, how you’re thinking about pricing and then what kind of the range bound is on that one points, what’s a scenario that could potentially drive upside to that? Thank you.
Kate Bueker: Yes, I could start with the first part on the strategy and the vision. First of all, we’re very pleased with successfully closing in December. We welcomed all of the Clearbit employees into HubSpot family early January, and everyone’s kind of excited to build something special. We do think that Clearbit can accelerate our vision of the customer platform. And if you take a step back, we want to be able to bring together enriched data, powerful AI tools that can drive insights from the data and are easy to use engagement hubs so that our customers can connect and grow. This is really driving and accelerating our vision for providing a customer platform. And we continue to get really good positive feedback from customers and partners.
They can see this vision come to life in terms of how we’re thinking about Clearbit, a couple of different phases. Initially, we will look to get Clearbit data into our customer base. Our customers want more enriched data and intent data. They want it that is completely unified within the hubs and the platform. And Clearbit has already been within our marketplace. There’s a clear integration. And so it’s a natural starting point for cross selling into our install base. And that motion has started, probably in the medium term as we do with any of the acquisitions. We want to more natively integrate the data into HubSpot products and so that we can really fire up all of the use cases and marketing, sales and our entire customer platform and we’re starting with that journey and we’ll also be able to talk fully leverage all of our distribution to be able to take that native product to market.
And so it’ll happen in a couple of phases, but we are really excited about what this does for our vision as well as how the initial few weeks have gone by.
Operator: Thank you for your question. Next question is from the line of Brad Sills with Bank of America. Your line is now open.
Bradley Sills: Oh great. Thank you so much. I wanted to ask a question on just the model here and growth drivers here between customer count and ASRPC. Obviously, we’re at a point now where the growth is really outsized towards customer count. Could we see a more balanced dispersion between customer count and ASRPC over time? What would be the keys to get back to that? Is this a macro phenomenon where you’re seeing that strength in starter addition? And as we get into potentially a better macro, you just see more of a balanced growth there and then just one follow-up. I think it’d be helpful to clarify if there was any material contribution to Q4 deferred from Clearbit. Thank you so much.
