HubSpot customers paying 12% more than in 2021
Costs for HubSpot customers rose in Q1 YoY because of added features and upgrades.
HubSpot customers paid, on average, license fees of $11,000 annually in the first quarter of this year, according to the company’s first quarter financial statements.
Average subscribers paid 12% more in 2022 than in 2021. The company attributed the increase to existing customers adding capabilities to their marketing automation instances and the growth of enterprise-level customers.
HubSpot also continues to add customers; 8,200 were onboarded in Q1. The company now has 143,000 customers, up 26% year-over-year.
HubSpot now offers a suite of applications: customer relationship management (CRM), customer experience, operations and content management software (CMS), in addition to marketing automation. More than half of the company’s customers subscribe to more than one, HubSpot CEO Yamini Rangan said in a recent call with analysts.
Why we care. Two things jump out.
First, that average customers pay only $11,000 per year demonstrates just how successful this billion dollar company was at penetrating the small-business market.
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Second, the 12% YoY revenue-per-customer growth affirms how much success HubSpot is having in cross-selling additional products to existing customers, and that it’s successfully moving up-market into territory occupied by Marketo (Adobe), Eloqua (Oracle) and Pardot (SalesForce), to name a few of the enterprise-level incumbents. At it’s third quarter analysts call, HubSpot said the number of enterprise-level customers paying at least $36,000 annually increased more than 80% year-over-year.
Our MarTech Replacement Survey found that marketing automation was one of the most frequently changed applications in the martech stack. HubSpot is undoubtedly contributing to this upheaval.