Q2 2024 HubSpot Inc Earnings Call Transcript
Key Points
- Revenue grew 21% year over year in constant currency, demonstrating strong financial performance.
- Operating margin expanded by 270 basis points year over year, reaching 17%, indicating improved operational efficiency.
- Total customer count increased to 228,000, driven by over 11,200 net customer additions in the quarter.
- High attach rate for the newly launched Content Hub, with nearly 50% of new Marketing Hub wins including it.
- Strong adoption of AI features, particularly in the Content Hub, driving significant customer engagement and value.
- Average subscription revenue per customer (ASRPC) decreased by 2% year over year, indicating a decline in revenue per customer.
- Upgrade rates remain challenged, with customers hesitant to expand their usage, impacting net revenue retention.
- Macro environment continues to be challenging, with slower decision-making and more scrutiny on business cases.
- Continued strong volume of lower ASP starter customers, which could impact overall revenue growth.
- The new pricing model has led to lower initial ASPs, requiring higher customer volumes to offset the decline.
Good afternoon and welcome to the HubSpot Q2 2024 earnings call. My name is Harry, and I will be your operator today. (Operator Instructions)
I would now like to hand the conference over to Senior Director of Investor Relations Ryan Burkart. Please go ahead.
Thanks, operator. Good afternoon, and welcome to HubSpot's second-quarter 2024 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 Yamini Rangan, our Chief Executive Officer; Dharmesh Shah, our Co-Founder and CTO; 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
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