Friday, February 22, 2013

HubSpot Reports 82% Revenue Growth

HubSpot released its 2012 Year in Review today, reporting 82% revenue growth, to $52.5 million.  Number of clients grew by 42%, to 8,440.   The figures are in line with my expectations, so they don't require any adjustments to my previous estimates of industry size or growth rate. 

Compared with last year, the revenue growth rate is about the same (82% vs 85%), while the customer growth rate is sharply lower (42% vs. 55%).  That means revenue per customer grew by significantly, by 24%. This reflects HubSpot's aggressive moves to serve larger companies and provide expanded features for traditional marketing automation such as more robust email and lead nurturing.  The revenue per customer suggest that things are going according to plan.

Congratulations to the team at HubSpot, and special appreciation to them for openly sharing information that many other companies do not.  I believe such transparency builds greater confidence in the company, as well as providing a clearer picture of the industry as a whole.

Here are figures and growth rates for the past three years, as listed in the report.  Note that I calculate revenue per customer based on the average customer count for each year. 

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