HubSpot Ireland slips into the red as staff numbers rise

The Irish subsidiary of US marketing software firm HubSpot, which announced plans to take on more than 300 staff in Ireland in April, slipped into the red last year as turnover more than doubled.

Newly filed accounts show HubSpot Ireland Limited reported a €183,009 pre-tax loss for the 12 months ending December 2015, as against a €528,532 profit a year earlier. The company attributed the loss to administration expenses arising from an increase in staff numbers.

HubSpot, which established operations in Ireland in September 2012, announced plans to increase headcount to more than 500 over the next three years after it relocated to new offices in the IFSC in April.

Staff costs at the Irish unit almost doubled last year, rising from €7.2 million to €14.1 million, the accounts show.

Revenues for HubSpot Ireland rose 122 per cent last year to €23.3 million from €10.5 million on the back of the launch of new products and a rise in customer numbers.

Professional services

A breakdown of turnover shows subscription-driven revenues jumped to €19 million from €8.2 million. Turnover from professional services increased from €943,327 to €1.78 million, while intercompany revenue rose to €2.35 million from €1.29 million.

An analysis of turnover by geographical market shows Ireland accounted for €678,371 of revenues, up from €367,282 in the prior year. Some €16.6 million in revenue came from Europe (excluding Ireland), while €2.8 million was from North America and €3.15 million from other regions.

HubSpot, which was founded by Brian Halligan and Dharmesh Shan in June 2006 at Massachusetts Institute of Technology, has more than 20,000 customers in 90 countries.

The company is behind a popular platform that is used for inbound marketing and sales purposes. Its software offers integrated applications including social media, search engine optimisation, blogging, website content management, marketing automation, email, customer relationship management, analytics and reporting.