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This statistic highlights HubSpot’s Revenue by Segment from 2018 onwards, split between Profession services and subscriptions segments. HubSpot is an American service provider that provides a combination of online tools which makes it easier for a company to work together through the CRM (Customer Relationship Management) Platform.
The following table shows HubSpot’s Revenue by Segment:
|Segments||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
|Professional services and other||$7.33||$10.36||$10.22||3%|
(All figures in millions, except percentages)
The company has reported the total revenue from the segment in Q3 2020 as $228.39 million, which further increased to $339.19 million in Q3 2021, indicating a year-on-year growth of 48.51%. It also grew 9.14% compared to $310.79 million earned in Q2 2021.
HubSpot functions in one operating segment. This operating segment can be explained as components of a company for which different financial information is regularly evaluated by the chief operating decision-maker (CODM) who is also the Chief executive officer, that decides how to allocate the resources and assess performance. The CODM of the company evaluates the company’s financial information and resources and assesses the performance of this information on a consolidated basis. As the company functions in one operating segment, all required financial segment data can be located in the consolidated financial statements of the company.
The Company’s operations are bifurcated into these segments:
The company provides professional services to educate and train its customers on techniques to leverage its CRM Platform to transform how its business engages, attracts, and captivates customers. Depending on the selected Hubs and services a customer purchases, they receive one-on-one training and guidance from one of the company’s onboarding or technical specialists by web meeting. The customers can also purchase additional group training and education in online or individual in-person classes. The company also provides in-app training modules that customers can use as part of their onboarding. These professional services are also available for customers who need additional assistance on a one-time or ongoing basis for an additional fee.
Revenue Trend: The company has reported the total revenue from professional services and others in Q3 2020 as $7.33 million, which further increased to $10.22 million in Q3 2021, indicating a year-on-year growth of 39.4%. However, there is a fall in revenue of 1.35% compared to $10.36 million earned in Q2 2021.
The company derives most of its revenue from subscriptions of its cloud-based CRM Platform. It sells multiple product plans at different prices on a subscription basis and each of them includes the CRM and integrated applications to meet the needs of various customers that the company serves. The customers also pay additional fees if the number of contracts tracked and stored in the customer’s database surpasses specified thresholds. The company also generates revenue from the purchase of additional subscriptions and products, and the number of account users and subdomains. Most of the subscriptions are one year or less in duration and are billed in advance on various schedules.
Revenue Trend: The company has reported total revenue from subscriptions in Q3 2020 as $221.06 million, which further increased to $328.97 million in Q3 2021, indicating a year-on-year growth of 49%. It also grew 9.5% compared to $300.42 million earned in Q2 2021.
About the Company
Hubspot is a software service platform that provides cloud-based customer relationship management (“CRM”) services. The platform consists of various Hubs such as Marketing, Sales, CMS, Services, and Operations. The company provides various tools and integrations that allow the companies to attract, delight, and engage customers throughout the customer experience. The company was founded in 2006 by Brian Halligan and Dharmesh Shah and is based in Cambridge, Massachusetts, United States. The common stock of the company is listed on The New York Stock Exchange (NYSE) under the ticker symbol “HUBS”. The company has more than 5,900 employees with global offices in 120+ countries. It primarily focuses on building a CRM Platform to grow with any company and to sell it to mid-market enterprises because of the competitive advantage that the company has in captivating and serving this market segment.
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