tidemark customer presentation: pamela (peterson) martinez, director, fp&a @ hubspot matthew...
TRANSCRIPT
Tidemark Customer Presentation:
PAMELA (PETERSON) MARTINEZ, DIRECTOR, FP&A @ HubSpotMATTHEW ANTONELL, SR. FINANCIAL ANALYST, FP&A @ HubSpot
An inbound marketing and
sales SaaS platform
Focused on the mid-market
>15,000 customers
Cambridge, Dublin, Sydney,
Singapore> 800 employees Trading on the
NYSE as $HUBS
5
Continued Momentum Since IPOGROWTH DRIVERS: Domestic | International | Upsell
Customer
REVENUE CUSTOMERS ASRPC
Key Financial Metrics
Key financial metrics 2011 2012 2013 2014 Q1’15
Gross Margin 61% 70% 65% 70% 73%
% of revenue
R&D 27% 19% 18% 17% 15%
S&M 82% 66% 67% 63% 57%
G&A 21% 16% 19% 18% 17%
Operating (Loss) / Income
%(69%) (31%) (39%) (28%) (16%)
All percentages for historical and future periods exclude expenses associated with stock based compensation and amortization of acquired intangibles. 23
Finance @ HubSpot
Accounting Order Management Payroll FP&A Investor
Relations
FP&A Responsibilities
Financial Forecasting & Planning
Financial Reporting of Actual Results
Business Partnership with Functional Leaders
1 2
3 4SaaS Metric Tracking and Reporting
FP&A @ HubSpot
Corporate FP&A
Functional FP&A
Total of 5 employees supporting and
business planning for Sales, Marketing, R&D, Services and Support
Team of 3 employees:• Managing consolidated
forecasting, planning and reporting processes
• Managing Tidemark• Supporting G&A
• Communication with Accounting and IR
HubSpot’s Tidemark Implementation
Consolidating the Monthly P&L Reforecast Process
• Unstructured process, ~7-8 team members making inputs
• New Process Cycle each month w/ uploads from NetSuite & Workday
• Workforce Planning: Headcount, Salaries, Wages, Bonuses & Commissions forecasting
• Users have access to appropriate slices (dept / cost centers) for Workforce Planning
• Revenue Forecast: Subscription, Services & Other (forecast in excel, pasted into TM)
• Non-OTE Expense Forecast: Manual input for T&E, Prof Fees, Rent & Depreciation, etc.
• Rolls-up to a Functional (SEC) P&L and Account P&L
• Collaboration / Annotations to align team on certain key assumptions or remember when/where a change was made
1
HubSpot’s Tidemark Implementation
Performing the Annual Planning Process (P&L)
• Similar unstructured process as reforecast
• ~6-quarter rolling forecast mid-month of every quarter. May & August roll out to the next full fiscal year as a “Business as Usual” case
• Kick-off formal Planning Process in Sept/Oct, with deeper inputs from functional leads (“Tuna Season”)
• Iterate each month through Jan, then plan finalized & locked in Tidemark as ‘2015 Plan’
• Execute budget transfers throughout year using Top-Side functionality
• Comparison point for each month’s Reforecast & Actual Results
2
HubSpot’s Tidemark Implementation
Documenting the Variance-to-Forecast and Variance-to-Plan Process
• Monthly ‘BVA’ Meeting with FP&A, Accounting, CFO
• Upload prelim Actual results from NetSuite, compare B/(W) to PFCST and PLAN
• Team inputs in-line variance explanations key in assisting with the prep for meeting
• Post-meeting: final close changes by Accounting, New Process Cycle is opened (NetSuite actuals loaded, Headcount actuals input, Workday upload completed)
3
Current ROI from Tidemark
Consolidation(Off Excel!!)
Version Control & Record Keeping
Helped to formalize FP&A processes
1 2
3
Workforce Planning
Headcount Summary
Enter Revenue and Cost of Revenue
Enter Non-OTE Expenses
Summary P&L
Functional P&L
Monthly BVA Variance Panel
Thoughts on the Future / How to Better Leverage Tidemark
No one system of record for all financial / install base / key metrics related data @ HubSpot
• Would require a lot more cross functional buy-in & implementation to make Tidemark this system
• Hard to use playbooks, storylines, sharing functionality without uploading all these other data
Thoughts on the Future / How to Better Leverage Tidemark
Short-Term:1. Further automate forecasting process to
more fully move off excel• Local Currency
• Payroll Tax Calcs
• Automate Allocations
• Benefits by person calcs
• Subscription Revenue (Subscrip eCommerce)
• Leverage excel add-in to link/refresh
2. Enhance existing panels with all the cuts, views, relative metrics required by our team and functional leaders
3. Calculate basic SaaS metrics in Tidemark (customer counts, ASRPC, LTV:CAC)• Need to upload a few additional metrics each
month (ending customers, new customers, New ARPU and Retention/Churn) to get this output
Longer-Term / Futures:
1. Load install base /customer data (via SFDC) to calc other metrics & reporting
2. Determine model to share with functional leaders direct from Tidemark to streamline the monthly/quarterly budget review process
3. Long-term driver-based P&L forecasting
4. Capex/Depreciation forecasting
5. Load Cash Flow & Balance Sheet actuals…and eventually forecast them here
QUESTIONS?
21 TIDEMARK ADVISORY BOARD