Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

How HubSpot's Revenue Retention Helped Them Scale and Succeed

23 May 2024 · 0 min

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0:12

Short excerpt from a May 23, 2024 YouTube conversation (Jason M. Lemkin and another speaker) about HubSpot's early revenue retention. The speakers recall very high churn in the early days—one reports HubSpot was churning 5–10% (or more) of revenue per month at one point and that it took four to five years to resolve; Jason suggests early revenue retention was closer to ~50% initially.

Questions this video answers

Approximately 5–10% (or possibly more) per month.

About 50% in the beginning.

I think Brian Halligan, I think he told me that they were churning out something like at one point, like 5 to 10% or maybe even more per month. And it took us four or five years to figure it out.
So I don't know if HubSpot, if HubSpot really was turning 5% or more in the early days, let's say its revenue retention is more like 50% in the beginning.
Yeah.
Well, I know from when I talked to him, it was 75% from M, D R, like 30 million revenue, which is kind of late. They were going a little bit upmarket. A little bit upmarket. Not a lot, just a little bit into bigger small businesses. And to have more than one product to add value. And in fact, it's interesting, HubSpot nominally has raised prices, but the. The average customer day pays 11,000. The average customer two years ago paid 11,000. The average customer four years ago paid 10,000. Okay, so what HubSpot has done, which a lot of folks don't do, they get it wrong. This is why HubSpot is one of the reasons it's so successful is, is they're adding more value for the same dollar. They're adding more value each year for the same dollar. That's.