Slide 1: Investor Presentation Q4 2024
INVESTOR PRESENTATION Q4 2024 INVESTOR PRESENTATION Q4 Q3 2024 1 1
Slide 2: Notes Regarding This Presentation
NOTES REGARDING THIS PRESENTATION This presentation 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. Forward-looking statements include stateme
Slide 3: Similarweb by the numbers
Similarweb by the numbers EFFICIENT & PREDICTABLE $246.0M 78% 49% 61% RPO with 69% Q4 2024 non-GAAP of ARR is multi-year of total ARR from BUSINESS MODEL expected to be gross margin1 subscriptions $100K+ ARR customers recognized over the next 12 months Q4 2024 $65.6M 16% $262M 112% Q4 2024 revenue Q
Slide 4: Our Mission
OUR MISSION To create the most comprehensive, actionable, and trusted digital data, so every business can win their market. INVESTOR PRESENTATION Q4 Q3 2024 4
Slide 5: Our proprietary Digital Data provides a comprehensive view of the digital world
Our proprietary Digital Data provides a comprehensive view of the digital world 1. 2. 3. 4. COLLECTION SYNTHESIS MODELING DATA SET - SIMILARWEB DIGITAL DATA ● First Party Direct Measurement > Cleaning Machine Predictive ● Contributor Network > Matching Learning Models Calibration ● Public Data ● Par
Slide 6: Similarweb's data provides a comprehensive view of the digital world
Similarweb’s data provides a comprehensive view of the digital world 200M+ 8M+ 235M+ Websites Apps Product SKUs 210 10B 250M 5B Categories Content Pages Display Ads Search Terms 10 Years 3,000 190 20M Historical data Stock Signals Countries Companies INVESTOR PRESENTATION Q4 2024 6 Business Propriet
Slide 7: Similarweb, your way
“Similarweb, your way” We deliver our Digital Data in three distinct and impactful ways Software Platform Data-as-a-Service Integrations Empowers teams and leaders to act with Seamlessly integrates into Enterprise Amplifies the value of customers’ clarity, driving better strategic and workflows and pr
Slide 8: Similarweb offerings help businesses win their market online
Similarweb offerings help businesses win their market online B2C B2B INVESTORS Web App Shopper Sales Stock Intelligence Intelligence Intelligence Intelligence Intelligence (SEO & Ads add-on) Data-as-a-Service Advisory & Custom Data Services INVESTOR PRESENTATION Q4 Q3 2024 8
Slide 9: Business leaders access Similarweb Digital Data through SaaS and DaaS
Business leaders access Similarweb Digital Data through our SaaS and DaaS solutions to make mission-critical business decisions Similarweb Solution Similarweb Similarweb Similarweb Similarweb Similarweb Web App Shopper Sales Stock Intelligence Intelligence Intelligence Intelligence Intelligence Grow
Slide 10: Over 5,500 customers rely on us to deliver game-changing insights
Over 5,500 customers rely on us to deliver game-changing insights today CONSUMER GOODS RETAIL FINANCIAL SERVICES PHARMA MEDIA TRAVEL TECHNOLOGY AGENCIES & CONSULTING OTHER INVESTOR PRESENTATION Q4 Q3 2024 10
Slide 11: Similarweb recognized as a Leader in G2's Spring 2024 Report
Similarweb recognized as a Leader in G2’s Spring 2024 G2 Report 90 badges across the board LEADER IN 6 KEY CATEGORIES ACROSS ALL WORLDWIDE BUSINESS SIZES Competitive Intelligence Content Analytics SEO Tools Digital Advertising Intelligence Market Intelligence Paid Search Intelligence INVESTOR PRESEN
Slide 12: Our Addressable Market
Our Addressable Market INVESTORS B2C Want to invest in B2C or ~10% Want to capture an B2B companies (private or audience across all digital public) that play in the channels and monetize it digital world B2B Want to sell (software or ~30% $55B ~60% services or media) to the B2C companies INVESTOR PR
Slide 13: Our growth strategy
Our growth strategy M&A We see an expanding market ahead with strong potential and multiple entry points to further expand our business opportunity. Deepen product portfolio Grow within existing customers Accelerate customer acquisition 1 2 3 4 INVESTOR PRESENTATION Q4 Q3 2024 13
Slide 14: Financial Overview
Financial Overview INVESTOR PRESENTATION Q4 Q3 2024 14
Slide 15: Consistent revenue growth
Consistent Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. revenue growth +11% +12% +13% +18% +16% +13% +15% $250M $218M $66M $65M $61M $59M $57M Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 INVESTOR PRESENTATION Q
Slide 16: Sustained Customer growth
Sustained The growth in our ARR customer base demonstrates the demand and the potential for our data and solutions. Customer growth 16% 16% 17% 21% 17% 5,534 5,308 4,844 5,034 4,712 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 INVESTOR PRESENTATION Q4 Q3 2024 16
Slide 17: NRR trend encouraging
Our dollar-based net retention rate (NRR) historically reflects increased usage and the purchase of more NRR trend than one solution by customers. In our largest and most strategic customer segment, customers that generate over $100K in ARR, our ability to retain and grow our business consistently ex
Slide 18: Continued progress in customer growth
As we strengthen our value proposition and expand our platform, new Continued progress in customer acquisition is occurring more at entry level pricing and packaging. customer growth… # of total ARR customers Average annual revenue per customer ($K) 5,534 $52 $50 $48 4,712 4,049 Q4’22 Q4’23 Q4’24 Q4
Slide 19: Sustained growth and expansion of our $100K ARR customer base
…with sustained growth and expansion of our $100k ARR customer base # of $100K+ ARR customers Average annual revenue per customer - $100k Group ($K) 405 $376 365 $352 337 $327 Q4’22 Q4’23 Q4’24 Q4’22 Q4’23 Q4’24 INVESTOR PRESENTATION Q4 Q3 2024 Note: We define ARR as the annualized subscription reven
Slide 20: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 44% ARR 61% $25K-$100K 35% ARR 27% $0K-$25K 21% ARR 12% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 INVESTOR PRESENTATION Q4 Q3 2024 Note: We define ARR as the annualized subscription revenue we would contractual
Slide 21: Attractive sales efficiency and CAC payback metrics
Attractive sales efficiency and CAC payback metrics historically S&M SPEND Implied Customer retention ~58% to 62% ~50% to 55% contribution margin1 for existing customers Historically implied Customer acquisition 15-16 month payback2 for CAC ~45% to 50% currently 21-22 months 21 1 INVESTOR PRESENTATIO
Slide 22: Margin and cash flow performance - focused on profitable growth
Margin and cash flow performance - focused on profitable growth FY’22 FY’23 FY’24 Q4’23 Q4’24 81% 81% 80% 78% 76% Non-GAAP Gross Profit (Margin %, USD mil.) $146.9 $176.5 $195.1 $46.2 $51.3 $14.2 $4.7 $2.6 ($63.8) ($4.8) Non-GAAP Operating (Loss)/Profit (2%) 6% 8% 4% (Margin %, USD mil.) (33%) $27.7 Non
Slide 23: Disciplined execution driving profitability
Disciplined execution driving profitability 83% 82% 81% 81% 80% 79% 80% 79% 78% 75% 74% 76% Gross Margin * Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Operating (45%) margin * (42%) 30% (27%) (21%) R&D as a % of 31% (14%) revenues * (6%) 27% 25% 2%
Slide 24: Long term model
Long term model % of revenue 2020A 2021A 2022A 2023A 2024A Target Model Gross Margin 77% 78% 76% 81% 80% 85% Research & Development 22% 28% 28% 23% 20% 15% Sales & Marketing 57% 65% 60% 44% 40% 35% Non-GAAP General & Administration 14% 21% 21% 16% 15% 10% Operating Margin (16%) (38%) (33%) (2%) 6% 2
Slide 25: Founder Led with a focused and experienced team
Founder Led with a focused and experienced team Or Offer Benjamin Seror Jason Schwartz Susan Dunn Co-Founder & Co-Founder & Chief Financial Officer Chief Revenue Officer Chief Executive Officer Chief Product Officer Lior Degani Maoz Lakovski Sigal Gill More Ron Asher Guy Gomberg Chief Operations Officer C
Slide 26: Why own SMWB
Why own SMWB A leading data platform Attractive sales Sustainable non-GAAP addressing mission-critical efficiency and CAC operating profit and use cases payback metrics positive free cash flow Innovative technology Steady growth in early Founder-led leadership based on durable innings of a multi-billio
Slide 27: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 FY'23 FY'24 Q4’23 Q4’24 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 170,929 195,099 44,896 50,256 Stock-based compensation expense 40 211 599 635 812 153 234 Retention payments related to bus
Slide 28: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 FY'23 FY'24 Q4’23 Q4’24 Reconciliation of free cash flow Net cash (used in) provided by operating activities (3,760) (27,625) (46,065) (3,038) 30,174 3,733 3,418 Purchases of property and equipment, net (748) (2,311) (28,25
Slide 29: Addressable Market Calculation
Addressable Market Calculation We estimate our addressable market to be $55B, based on the following calculation: For B2C and B2B companies, we have based our calculation on our assumption of the potential annual spend on Similarweb products by SMEs (20-1000 employees) and Large Enterprises (1000+ e
Slide 30: Thank you.
INVESTOR PRESENTATION Q4 2024 Thank you. INVESTOR PRESENTATION Q3 2024