Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Similarweb Announces First Quarter 2024 Results

Sustained momentum in both top line and bottom line performance

Delivering consecutive quarters of positive free cash flow and non-GAAP operating profit

Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its first quarter ended March 31, 2024. The Company published a letter to shareholders from management discussing these results, which can be accessed at the link: https://ir.similarweb.com/financials/quarterly-results, located on the Company's investor relations website.

“Demand for our solutions from customers who value Similarweb Digital Data to make critical business decisions, supported 16% growth in customers and 12% growth in revenue, relative to Q1 2023,” said Or Offer, Co-Founder and CEO of Similarweb. “We delivered strong momentum on the bottom line, with a third consecutive quarter of non-GAAP operating profit, and a second consecutive quarter of positive free cash flow. Our recent acquisition of Admetricks and the launch of SAM, our AI-powered Sales Assistant Module demonstrates our continued investment in the enhancement of our unique data and solutions."

First Quarter 2024 Financial Highlights

  • Total revenue was $59.0 million, an increase of 12% compared to $52.8 million for the first quarter of 2023.
  • GAAP operating loss was $(2.7) million or (5)% of revenue, compared to $(13.1) million or (25)% of revenue for the first quarter of 2023.
  • GAAP net loss per share was $(0.03), compared to $(0.15) for the first quarter of 2023.
  • Non-GAAP operating profit was $2.8 million or 5% of revenue, compared to non-GAAP operating loss of $(7.2) million or (14)% of revenue for the first quarter of 2023.
  • Non-GAAP operating profit per share was $0.04, compared to non-GAAP operating loss of $(0.09) for the first quarter of 2023.

Recent Business Highlights

  • Generated $9.7 million of free cash flow, reflecting a record 16% free cash flow margin.
  • Grew number of customers to 4,844 as of March 31, 2024, an increase of 16% compared to March 31, 2023.
  • Grew number of customers with ARR of $100,000 or more to 378, an increase of 10% compared to March 31, 2023.
  • Customers with ARR of $100,000 or more contributed 58% of the total ARR as of March 31, 2024, compared to 55% as of March 31, 2023.
  • Dollar-based net retention rate for customers with ARR of $100,000 or more was 107% in the first quarter of 2024, consistent with the fourth quarter of 2023.
  • Overall dollar-based net retention rate was 98% in the first quarter of 2024, consistent with the fourth quarter of 2023.
  • Multi-year subscriptions now comprise 42% of our overall ARR as of March 31, 2024, as compared to 40% as of March 31, 2023.
  • Remaining performance obligations increased 23% year-over-year, to $213.6 million as of March 31, 2024, as compared to $174.0 million as of March 31, 2023.
  • Announced the acquisition of Admetricks, a leading digital ad intelligence provider based in Santiago, Chile.

Financial Outlook

“We remain focused on generating profitable growth as demonstrated in the first quarter with accelerating top line growth as well as continued positive free cash flow and non-GAAP operating profit,” said Jason Schwartz, Chief Financial Officer of Similarweb. “We are maintaining our revenue outlook and improving our outlook for non-GAAP operating profit for the full year 2024. We remain disciplined to support our goal of positive free cash flow and non-GAAP operating profit on a quarterly basis in 2024, while continuing to invest to support the realization of Similarweb's potential.”

  • Q2 2024 Guidance
    • Total revenue estimated between $60.0 million and $60.5 million, representing approximately 12% growth year over year at the mid-point of the range.
    • Non-GAAP operating profit estimated between $1.5 million and $2.0 million.
  • FY 2024 Guidance
    • Total revenue estimated between $242.0 million and $246.0 million, representing approximately 12% growth year over year at the mid-point of the range.
    • Non-GAAP operating profit estimated between $7.0 million and $9.0 million.

The Company’s second quarter and full year 2024 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss and gross margin, the most directly comparable GAAP measures to non-GAAP operating loss and non-GAAP gross margin, respectively, and similarly cannot provide a reconciliation of these measures to their closest GAAP equivalents without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 8:30 a.m. Eastern Time on Wednesday, May 8, 2024. A live webcast of the call can be accessed from Similarweb’s Investor Relations website at https://ir.similarweb.com. An archived webcast of the conference call will also be made available on the Similarweb website following the call. The live call may also be accessed via telephone at (888) 645-4404 toll-free and at (862) 298-0702 internationally.

About Similarweb: Similarweb powers the data-driven decisions that help businesses win their market by revealing what is happening online. Similarweb provides businesses with the essential digital data & analytics needed to build strategy, optimize customer acquisition and increase monetization. We enable our users to become the first to discover and capture the best business opportunities and to stay alert and react instantly to emerging threats to their business. Similarweb products are easy to use and integrated into users’ workflow, powered by the most advanced technology, and based on what we believe to be the most comprehensive digital data on the planet.

Learn more: Similarweb | Similarweb Digital Data

Free Tools: Analyze any website or app | Verify your website | Browser extension

Follow us: Blog | LinkedIn | YouTube | Instagram | X

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our guidance for the second quarter and full year of 2024 described under "Financial Outlook". Forward-looking statements include all statements that are not historical facts. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements reflect our current views regarding our intentions, products, services, plans, expectations, strategies and prospects, which are based on information currently available to us and assumptions we have made. Actual results may differ materially from those described in such forward-looking statements and are subject to a number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to achieve or sustain profitability; (v) anticipated trends, growth rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations on geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete.

These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Form 20-F filed with the Securities and Exchange Commission on February 28, 2024, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur.

Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. Except as required by law, we undertake no duty to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release contains certain financial measures that are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. We believe these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial measures have limitations as an analytical tool and are presented for supplemental informational purposes only. They should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures and capitalized internal-use software costs. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, as applicable and indicated in the below tables.

Other Metrics

Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. Annual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.

 

Similarweb Ltd.

Consolidated Balance Sheets

U.S. dollars in thousands (except share and per share data)

 

 

December 31,

 

March 31,

 

2023

 

2024

 

 

 

(Unaudited)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

71,732

 

 

$

54,890

 

Restricted deposits

 

10,020

 

 

 

10,188

 

Accounts receivable, net

 

47,869

 

 

 

41,257

 

Deferred contract costs

 

11,165

 

 

 

11,085

 

Prepaid expenses and other current assets

 

5,599

 

 

 

6,410

 

Total current assets

 

146,385

 

 

 

123,830

 

Property and equipment, net

 

28,630

 

 

 

27,620

 

Deferred contract costs, non-current

 

9,845

 

 

 

9,512

 

Operating lease right-of-use assets

 

36,007

 

 

 

36,828

 

Goodwill and Intangible assets, net

 

17,652

 

 

 

21,192

 

Other non-current assets

 

494

 

 

 

461

 

Total assets

$

239,013

 

 

$

219,443

 

Liabilities and Shareholders' equity

 

 

 

Current liabilities:

 

 

 

Borrowings under Credit Facility

$

25,000

 

 

$

 

Accounts payable

 

8,422

 

 

 

5,968

 

Payroll and benefit related liabilities

 

20,437

 

 

 

15,757

 

Deferred revenue

 

99,968

 

 

 

107,643

 

Other payables and accrued expenses

 

23,263

 

 

 

25,853

 

Operating lease liabilities

 

7,095

 

 

 

6,412

 

Total current liabilities

 

184,185

 

 

 

161,633

 

Deferred revenue, non-current

 

878

 

 

 

723

 

Operating lease liabilities, non-current

 

35,329

 

 

 

34,562

 

Other long-term liabilities

 

3,074

 

 

 

3,420

 

Total liabilities

 

223,466

 

 

 

200,338

 

Shareholders' equity

 

 

 

Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2023 and March 31, 2024 (unaudited), 78,653,046 and 80,314,588 shares issued as of December 31, 2023 and March 31, 2024 (unaudited), 78,650,878 and 80,312,420 outstanding as of December 31, 2023 and March 31, 2024 (unaudited), respectively;

 

216

 

 

 

221

 

Additional paid-in capital

 

367,558

 

 

 

374,361

 

Accumulated other comprehensive income

 

872

 

 

 

355

 

Accumulated deficit

 

(353,099

)

 

 

(355,832

)

Total shareholders' equity

 

15,547

 

 

 

19,105

 

Total liabilities and shareholders' equity

$

239,013

 

 

$

219,443

 

Similarweb Ltd.

Consolidated Statements of Comprehensive Income (Loss)

U.S. dollars in thousands (except share and per share data)

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(Unaudited)

Revenue

$

52,750

 

 

$

58,982

 

Cost of revenue

 

12,076

 

 

 

12,696

 

Gross profit

 

40,674

 

 

 

46,286

 

Operating expenses:

 

 

 

Research and development

 

14,351

 

 

 

13,539

 

Sales and marketing

 

28,666

 

 

 

25,240

 

General and administrative

 

10,737

 

 

 

10,191

 

Total operating expenses

 

53,754

 

 

 

48,970

 

Loss from operations

 

(13,080

)

 

 

(2,684

)

Finance income, net

 

1,355

 

 

 

455

 

Loss before income taxes

 

(11,725

)

 

 

(2,229

)

Provision for income taxes

 

109

 

 

 

504

 

Net loss

$

(11,834

)

 

$

(2,733

)

Net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.15

)

 

$

(0.03

)

Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted

 

76,862,020

 

 

 

79,361,522

 

 

 

 

 

Net loss

$

(11,834

)

 

$

(2,733

)

Other comprehensive loss, net of tax

 

 

 

Change in unrealized loss on cashflow hedges

 

(277

)

 

 

(517

)

Total other comprehensive loss, net of tax

 

(277

)

 

 

(517

)

Total comprehensive loss

$

(12,111

)

 

$

(3,250

)

Share-based compensation costs included above:

U.S. dollars in thousands

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(Unaudited)

Cost of revenue

$

155

 

$

167

Research and development

 

1,390

 

 

1,444

Sales and marketing

 

1,374

 

 

1,185

General and administrative

 

1,490

 

 

1,331

Total

$

4,409

 

$

4,127

Similarweb Ltd.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(Unaudited)

Cash flows from operating activities:

 

 

 

Net loss

$

(11,834

)

 

$

(2,733

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

2,540

 

 

 

2,520

 

Finance expense

 

207

 

 

 

236

 

Unrealized (gain) loss from hedging future transactions

 

(27

)

 

 

31

 

Share-based compensation

 

4,409

 

 

 

4,127

 

Loss (gain) from sale of equipment

 

2

 

 

 

(4

)

Changes in operating assets and liabilities:

 

 

 

Change in operating lease right-of-use assets and liabilities, net

 

(1,225

)

 

 

(2,271

)

Decrease in accounts receivable, net

 

644

 

 

 

6,993

 

Decrease in deferred contract costs

 

1,449

 

 

 

413

 

Decrease (increase) in other current assets

 

250

 

 

 

(1,324

)

Decrease in other non-current assets

 

431

 

 

 

33

 

Decrease in accounts payable

 

(1,059

)

 

 

(2,463

)

Increase in deferred revenue

 

7,243

 

 

 

6,988

 

(Decrease) increase in other non-current liabilities

 

(94

)

 

 

194

 

Decrease in other liabilities and accrued expenses

 

(2,610

)

 

 

(2,676

)

Net cash provided by operating activities

 

326

 

 

 

10,064

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment, net

 

(1,132

)

 

 

(364

)

Capitalized internal-use software costs

 

(433

)

 

 

 

Increase in restricted deposits

 

(44

)

 

 

(168

)

Payment for business combinations, net of cash acquired

 

 

 

 

(3,809

)

Net cash used in investing activities

 

(1,609

)

 

 

(4,341

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options

 

1,392

 

 

 

2,671

 

Repayment of Credit Facility

 

 

 

 

(25,000

)

Payments of contingent consideration, net

 

(2,363

)

 

 

 

Net cash used in financing activities

 

(971

)

 

 

(22,329

)

Effect of exchange rates on cash and cash equivalents

 

(207

)

 

 

(236

)

Net decrease in cash and cash equivalents

 

(2,461

)

 

 

(16,842

)

Cash and cash equivalents, beginning of period

 

77,810

 

 

 

71,732

 

Cash and cash equivalents, end of period

$

75,349

 

 

$

54,890

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

Interest paid (received), net

$

6

 

 

$

(235

)

Taxes paid

$

55

 

 

$

831

 

Supplemental disclosure of non-cash financing activities:

 

 

 

Additions to operating lease right-of-use assets and liabilities

$

170

 

 

$

2,398

 

Deferred proceeds from exercise of share options included in other current assets

$

16

 

 

$

20

 

Deferred costs of property and equipment incurred during the period included in accounts payable

$

121

 

 

$

142

 

Deferred payments in relation to business combinations held in escrow

$

1,269

 

 

$

 

 

 

 

 

Schedule A: Business combinations

 

 

 

Working capital (deficit), net (excluding cash and cash equivalents)

$

 

 

$

(217

)

Property, plant and equipment

 

 

 

 

18

 

Goodwill and other intangible assets

 

 

 

 

4,660

 

Deferred taxes, net

 

 

 

 

(152

)

 

 

 

 

 

4,309

 

Less non-cash:

 

 

 

Deferred cash payments

 

 

 

 

(500

)

Total

$

 

 

$

3,809

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

 

Reconciliation of GAAP gross profit to non-GAAP gross profit

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(In thousands)

GAAP gross profit

$

40,674

 

 

$

46,286

 

Add:

 

 

 

Share-based compensation expenses

 

155

 

 

 

167

 

Retention payments related to business combinations

 

88

 

 

 

 

Amortization of intangible assets related to business combinations

 

1,168

 

 

 

1,087

 

Non-GAAP gross profit

$

42,085

 

 

$

47,540

 

Non-GAAP gross margin

 

80

%

 

 

81

%

Reconciliation of Loss from operations (GAAP) to Non-GAAP operating (loss) income

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(In thousands)

Loss from operations

$

(13,080

)

 

$

(2,684

)

Add:

 

 

 

Share-based compensation expenses

 

4,409

 

 

 

4,127

 

Retention payments related to business combinations

 

282

 

 

 

228

 

Amortization of intangible assets related to business combinations

 

1,202

 

 

 

1,121

 

Non-recurring expenses related to termination of lease agreement and others

 

13

 

 

 

 

Non-GAAP operating (loss) income

$

(7,174

)

 

$

2,792

 

Non-GAAP operating margin

 

(14

)%

 

 

5

%

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(In thousands)

GAAP research and development

$

14,351

 

 

$

13,539

 

Less:

 

 

 

Share-based compensation expenses

 

1,390

 

 

 

1,444

 

Non-GAAP research and development

$

12,961

 

 

$

12,095

 

Non-GAAP research and development margin

 

25

%

 

 

21

%

 

 

 

 

GAAP sales and marketing

$

28,666

 

 

$

25,240

 

Less:

 

 

 

Share-based compensation expenses

 

1,374

 

 

 

1,185

 

Retention payments related to business combinations

 

194

 

 

 

228

 

Amortization of intangible assets related to business combinations

 

34

 

 

 

34

 

Non-recurring expenses related to termination of lease agreement and others

 

13

 

 

 

 

Non-GAAP sales and marketing

$

27,051

 

 

$

23,793

 

Non-GAAP sales and marketing margin

 

51

%

 

 

40

%

 

 

 

 

GAAP general and administrative

$

10,737

 

 

$

10,191

 

Less:

 

 

 

Share-based compensation expenses

 

1,490

 

 

 

1,331

 

Non-GAAP general and administrative

$

9,247

 

 

$

8,860

 

Non-GAAP general and administrative margin

 

18

%

 

 

15

%

Reconciliation of Net cash provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow

 

 

Three Months Ended March 31,

 

2023

 

2024

 

(In thousands)

Net cash provided by operating activities

$

326

 

 

$

10,064

 

Purchases of property and equipment, net

 

(1,132

)

 

 

(364

)

Capitalized internal use software costs

 

(433

)

 

 

 

Free cash flow

$

(1,239

)

 

$

9,700

 

 

 

 

 

Purchases of property and equipment related to the new headquarters

 

1,048

 

 

 

 

Payments received from escrow in relation to contingent consideration

 

(380

)

 

 

 

Normalized free cash flow

$

(571

)

 

$

9,700

 

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.