HubSpot, Inc. (NYSE:HUBS) Q4 2023 Earnings Call Transcript

Yamini Rangan: Yes, I know. Urgency is definitely not something that we have heard in the past few quarters and so we definitely saw it towards the end of the quarter, especially with larger deals and multi-hub wins. In upmarket, we saw customers wanting to consolidate into fewer effective platforms, both to reduce the total cost of ownership as well as to get better visibility across sales and marketing as they set up for the new year. So a lot of the conversations that we had towards the end of the quarter were, how do we consolidate, how do we get better visibility so we can set up a growth in 2024? I do think that our fast time to value, easy to adopt but very powerful tools is just compelling, and we saw that towards the end of the year.

I think, like I said earlier in the prepared remarks, it doesn’t mean that the whole environment has shifted. We are really not ready to call it all clear in terms of the patterns, but the value proposition upmarket is certainly resonating and that translated into large deal strength.

Ryan Burkart: Operator, I think we have time for maybe one more question.

Operator: The final question is from the line of Michael Turrin with Wells Fargo. Your line is now open.

Michael Turrin: Hey, great, thanks. I appreciate you squeezing me in. A nice job. At the close of the year, I was hoping you could maybe compare and contrast what you saw across customer segments exiting the year. It’s pretty clear from the comments throughout that the starter motion has come through strong, but I was hoping we could maybe revisit the macro commentary you made across segments. And then in terms of guidance, what you’re assuming sounded like macro does not improve in the current scenario, but just going back to that as a closing point I think is helpful? Thank you.

Kate Bueker: Yes, I mean, you definitely heard both Yamini and I talk in our prepared remarks that we saw some early positive signs in Q4, but at the highest level, we’re assuming that the macro conditions remain challenging into 2024. In general, our customers are still cautious, and we assume that our customers are going to continue to optimize their spend throughout 2024. That said, I do feel like we have seen some stabilization in customer trends. I believe we have a tighter handle on the overall environment and customer behavior entering 2024. So our overarching philosophy for guidance hasn’t changed. We always endeavor to set a financial guidance that we feel we have high confidence in achieving.

Operator: Thank you for your question. There are no additional questions waiting at this time, so I’ll pass the conference back to Yamini Rangan, CEO, for any closing remarks.

Yamini Rangan: Well, thank you so much for your support, and we look forward to connecting back again in the quarter.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.