Brett Huff

Brett Huff from Stephens Inc. asked about the specific use cases driving higher net retention under the consumption model and sought clarity on the assumptions behind the upgraded full-year guidance.

Answer

CEO Josh James explained that growth comes from broader adoption across multiple use cases, aided by joint engagement with CDW partners in existing accounts. CFO Tod Crane attributed the improved guidance to finding more leverage in the model and focusing resources on strategic priorities with the highest ROI.

Brett Huff from Stephens Inc. requested a high-level stack rank of HubSpot's primary growth drivers, given the dynamic environment with AI, upmarket momentum, and new products.

Answer

CEO Yamini Rangan outlined several key drivers. The current playbook of platform consolidation and upmarket motion continues to work well. In addition, she identified three durable future levers: 1) intentional rep additions in specific segments, 2) the ongoing positive impact of the 2024 pricing changes rolling through the install base, and 3) AI as a multi-year tailwind, which will be monetized patiently via platform embedding and agents.

Brett Huff from Stephens Inc. asked for an updated ranking of HubSpot's primary growth drivers, considering recent changes like AI, the upmarket push, and new products.

Answer

CEO Yamini Rangan outlined that the current playbook of platform consolidation and moving upmarket is working and will continue. She then identified three additional durable growth drivers for the future: 1) intentional rep additions in specific segments, 2) the ongoing rollout of last year's pricing changes across the install base, which will provide a tailwind into next year, and 3) AI as a multi-year tailwind, which will be monetized patiently through both platform embedding and agents.

Brett Huff of Stephens Inc. asked management to rank Klaviyo's primary growth opportunities among international expansion, AI and conversational products, and moving upmarket.

Answer

Co-Founder and CEO Andrew Bialecki identified the AI-driven, autonomous CRM as the number one opportunity, stating his belief that every company will adopt an AI-native stack. He explained this is the core driver behind their service and marketing automation innovations. He ranked the enterprise and international expansion opportunities as significant growth areas with substantial runway, but secondary to the overarching AI strategy.

Brett Huff from Stephens Inc. inquired about how international performance compared to internal expectations and how much of the raised full-year guidance is being driven by this international strength.

Answer

CFO Amanda Whalen confirmed that international trends are 'incredibly strong' and a key accelerator, citing over 100% year-over-year new business growth in France, Germany, and Spain. She stated that the guidance assumes continued strong results from past investments and incorporates future benefits from new investments in go-to-market and website localization.

Brett Huff requested an anecdote to explain why marketing dollars continue to be spent amid macro uncertainty and asked about the impact of foreign exchange assumptions on the full-year revenue guidance.

Answer

CEO Bill Magnuson explained that while spending on new growth initiatives is cautious, budgets are being directed toward consolidation and optimization, where Braze wins against legacy vendors who have 'taken their eye off the ball.' CFO Isabelle Winkels clarified that FX has a de minimis impact on guidance, as the Japanese Yen is the only non-USD contract currency and represents a low single-digit percentage of revenue.

Brett Huff asked how the current macroeconomic environment factors into Workiva's long-term guidance and inquired if key partners, like the Big 4, are altering their approach to the ESG market.

Answer

CFO Jill Klindt affirmed that the company continues to operate with its 2027 and 2030 targets in mind, balancing investment in growth with margin improvement levers. CEO Julie Iskow stated that Workiva and its partners remain aligned on the ESG market, viewing it as being driven by regulation, performance, and risk mitigation, with no change in their joint go-to-market strategy.