So HubSpot had a great quarter, despite there being many challenges in the sales and marketing segments overall in the past 18 months:

  • $2.5B ARR
  • 23% Growth
  • 22% Customer Growth
  • 15% Operating Margins (non-GAAP)
That’s about as good as it gets.  Even as many selling software to tech have struggled, HubSpot has maintained top-tier growth.

But … that doesn’t mean it got easier. HubSpot was clear:  notwithstanding strong results, demand wasn’t any stronger.  It’s still tough out there. 

CEO Yamini Rangan noted:

  • December seemed to show a bit stronger macro demand, but that evaporated in Q1
  • Budget scrutiny remains higher
  • More decision-markers in deals, even with an $11k price point at HubSpot
  • More demos and proof-of-concepts before buying.  More proof-of-concepts than ever.
  • Deals pushing into next quarter
  • Deal close and upgrade rates under pressure
  • Larger deals are taking longer
  • They aren’t planning on it getting any easier through the end of the year


  • GRR and retention is consistent, even if NRR at 102% is down from the 110% peak a few years ago.  I.e., folks aren’t churning or leaving.  But it’s a lot harder to close them. Still, even now.

This is probably what most of you are seeing for pure-play B2B SaaS sales, too.

So if you are roughly in HubSpot’s space, it hasn’t gotten any easier this year.  It just hasn’t.  There’s no bounce back … yet.

But what about B2B2C?  What about outside of sales and marketing software etc?  Many B2B2C segments have fully bounced back … and are on fire.

We did a recent Workshop Wednesday with the CEO of RevenueCat, which manages the mobile subscriptions for over 10,000 paying mobile apps — 30% of all U.S. mobile subscriptions.  That’s a lot of apps.

If you look at their chart below, you’ll see on the consumer and prosumer subscription side, there was a downturn / slowdown going into 2022 as we came out of the Covid Boost of 2021.  But 2023?  It came roaring back.  And 2024 is just as strong.

B2C and B2B2C are usually ahead of B2B.  The customers come and go faster.  So maybe it’s a sign.  A sign even if 2024 remains harder per HubSpot (and many others) … that 2025 could be, hopefully will be, the bounce back for B2B.

Stay the course.



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