Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How has HubSpot's AI strategy evolved, and what is the company's approach to AI monetization? A: Yamini Rangan, CEO, explained that HubSpot's strategy is to embed AI across every hub and the entire platform, rather than offering it as a separate product. The focus is on driving customer acquisition and expansion through AI. While the current pricing model is seat-based, there is a plan to introduce usage-based pricing as customers derive consistent value from AI. The company is committed to delivering value first before monetizing AI features.
Q: What impact do you expect AI to have on HubSpot's 2025 revenue forecast? A: Kathryn Bueker, CFO, stated that the 2025 guidance does not assume direct monetization from AI agents. However, AI is expected to contribute to growth through increased adoption and value realization in products like Content Hub, Sales Hub, and Service Hub. The company anticipates continued momentum in AI adoption, which is factored into the guidance.
Q: How is HubSpot addressing the potential cost and efficiency benefits of AI models like DeepSeek? A: Dharmesh Shah, CTO, highlighted that the introduction of models like DeepSeek has significantly reduced costs, particularly inference costs. These models also expand the capabilities of AI agents, allowing them to tackle more complex customer problems. The reduction in costs and increased capabilities are expected to positively impact HubSpot's operations and customer offerings.
Q: Can you elaborate on the changes in partner behavior following the commission structure adjustments? A: Yamini Rangan, CEO, explained that changes to the partner commission structure in 2023 were designed to increase customer value. The adjustments include a shift to three-year commissions for new deals and the retirement of lifetime commissions for existing deals starting in 2025. These changes have led to better engagement between partners and HubSpot's sales teams, resulting in a 68% year-over-year increase in co-selling.
Q: How is HubSpot planning to leverage AI internally to impact expense growth? A: Kathryn Bueker, CFO, mentioned that AI is being broadly adopted internally, with investments focused on R&D and go-to-market capacity. Yamini Rangan, CEO, added that AI is being used to reimagine marketing and sales strategies, improve support resolution rates, and enhance personalization. These efforts are expected to drive mid- to long-term efficiency and innovation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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