Billion dollar SaaS companies HubSpot and DoorDash just released their Q1 2023 earnings, and both companies reported overall YoY growth — and international revenue is to thank. International revenue accounted for nearly half (46%) of HubSpot’s total revenue in Q1 2023, and overall revenue is up 27% YoY compared to Q1 2022. “Domestic revenue grew 27% year-over-year, while international revenue growth was 33% in constant currency and 26% as reported,” HubSpot’s Q1 2023 Earnings Call states.
And on the DoorDash Q1 2023 Earnings Call, “on a Y/Y basis, Marketplace GOV in our international markets increased by well over 200% and, based on third-party data, we believe we grew faster than many of our peers and gained category share in many individual markets and in our international markets as a whole in the quarter.”
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|DoorDash’s overall revenue growth is up 40% YoY (Q1 23 vs Q1 22).
HubSpot’s overall revenue growth is up 27% YoY (Q1 23 vs Q1 22).
It’s clear that investing in regional marketing teams and localization is important to SaaS business growth. HubSpot and DoorDash have done this well, and it’s paying off.
“Companies can’t achieve such impressive international growth without investing in regional marketing and localization,” said Nataly Kelly, author of the forthcoming book, Take Your Company Global.
Driving international SaaS growth despite global macroeconomic conditions
Economists have been predicting a recession in one form or another for some time, but many believe that we’re in a time of reset post-pandemic that will ultimately stabilize the economy. SaaS leaders are aware of the climate, and pushing forward with international growth plans.
Both HubSpot and DoorDash leaders are expecting stable growth in Q2, but remain cautious about the global macroeconomic climate.
The latest DoorDash earnings call report mentions, “Our increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks. Changes in the international operating environment could negatively impact results versus our current outlook.”
Yamini Rangan, CEO of HubSpot echoes similar concerns, but she is hopeful about the future — “We had a strong start to the year and I’m pleased with the focused execution of the HubSpot team. Our results show that our product innovation is in high gear and that our bi-modal go-to-market strategy is working. We continue to operate in a tough macroeconomic environment but we have a solid playbook for executing and driving sustainable growth despite this challenge. At the same time, we are in the early stages of a transformative shift brought on by Generative AI.”
Getting international product marketing right can significantly change the course of a SaaS business’s trajectory, taking some to exponential heights who invest in the right teams and resources.
How global SaaS companies approach regional marketing and global expansion
Expanding a software product internationally requires a lot more than just translating existing documents and product pages and hiring a local sales rep. And AI can even make it seem “too easy” to instantly translate web pages and blog posts into another language. That’s why companies like HubSpot and DoorDash have built out extensive regional marketing teams, with locally-led marketing, sales, and product development departments.
“Invest wisely in regional marketing and localization. The revenue growth pay-off can be tremendous over the long haul,” adds Nataly Kelly, award-winning tech executive and localization expert. (Read more here: Should your digital global marketing efforts be language-led or country-focused?)
Heading into Q2, how are you approaching international and regional marketing efforts?
Our small, creative marketing team works with international teams around the world to develop localized content marketing campaigns and regional sales enablement materials. Take a look at some of our past projects and reach out if you’re looking to launch a campaign in Q2.