Similarweb Ltd. · NYSE:SMWB
Similarweb — Q1 2025 Earnings Presentation
33 slides from Similarweb's earnings presentation, May 14, 2025
Slide 1: Investor Presentation Q1 2025
INVESTOR PRESENTATION Q1 2025 INVESTOR PRESENTATION Q1 2025 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 $252.7M 80% 52% 61% RPO with 69% Q1 2025 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 Q1 2025 $67.1M 14% $268M 111% Q1 2025 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 Q1 2025 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 100M+ 4M+ 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 Q1 2025 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 Q1 2025 8
Slide 9: Business leaders access Similarweb Digital Data through SaaS and DaaS solutions
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 5,700 customers rely on us to deliver game-changing insights today
Over 5,700 customers rely on us to deliver game-changing insights today CONSUMER GOODS RETAIL FINANCIAL SERVICES PHARMA MEDIA TRAVEL TECHNOLOGY AGENCIES & CONSULTING OTHER INVESTOR PRESENTATION Q1 2025 10
Slide 11: Similarweb recognized as a Leader in G2's Spring 2025 G2 Report
Similarweb recognized as a Leader in G2’s Spring 2025 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 digital B2C companies INV
Slide 13: The AI-wave sweeping the digital world presents incredible opportunities
The AI-wave sweeping the digital world presents incredible opportunities GenAI Intelligence LLM Training Similarweb AI Agents Provide consumer behavior Supply companies building Enable our users data from GenAI searches, and GenAI products with fresh to automate their workflows how to optimize for th
Slide 14: Similarweb AI Agents empower customers with tools to leverage our data
Similarweb AI Agents empower customers with tools to leverage our data AI Trend Analyzer Agent AI SEO Strategy Agent AI Sales Meeting Prep Agent Detects unusual spikes in demand, Turns real-user search behavior into a Build a strategic 1-page meeting brief uncovers what’s causing them, helps data-ba
Slide 15: 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 Q1 2025 15
Slide 16: Financial Overview
Financial Overview INVESTOR PRESENTATION Q1 2025 16
Slide 17: Consistent revenue growth
Consistent Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. revenue growth +12% +13% +18% +16% +14% $67M $66M $65M $61M $59M Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 INVESTOR PRESENTATION Q1 2025 17
Slide 18: 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% 17% 21% 17% 19% 5,767 5,534 5,308 4,844 5,034 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 INVESTOR PRESENTATION Q1 2025 18
Slide 19: 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 $100K in ARR, our ability to retain and grow our business consistently ex
Slide 20: Continued progress in customer growth…
As we strengthen our value proposition and expand our platform, new Continued progress in customer acquisition is occurring more at entry level pricing and packaging. customer growth… # of total ARR customers Average annual revenue per customer ($K) 5,767 $51 $49 $47 4,844 4,179 Q1’23 Q1’24 Q1’25 Q1
Slide 21: …with 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) 411 $368 378 $350 344 $326 Q1’23 Q1’24 Q1’25 Q1’23 Q1’24 Q1’25 INVESTOR PRESENTATION Q1 2025 Note: We define ARR as the annualized subscription revenue
Slide 22: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 45% ARR 61% $25K-$100K 35% ARR 27% $0K-$25K 20% ARR 12% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 2025 INVESTOR PRESENTATION Q1 2025 Note: We define ARR as the annualized subscription revenue we would contractua
Slide 23: Attractive sales efficiency and CAC payback metrics historically
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 1 Calculated as (TTM 03/3
Slide 24: Margin and cash flow performance - focused on profitable growth
Margin and cash flow performance - focused on profitable growth FY’22 FY’23 FY’24 Q1’24 Q1’25 81% 80% 81% 80% 76% Non-GAAP Gross Profit (Margin %, USD mil.) $146.9 $176.5 $200.2 $47.5 $53.7 $15.0 $2.8 Non-GAAP ($63.8) ($4.8) ($1.3) Operating (Loss)/Profit (2%) 6% 5% (2)% (Margin %, USD mil.) (33%) $27.7
Slide 25: Disciplined execution driving improving profitability
Disciplined execution driving improving profitability 83% 81% 81% 82% 80% 80% Gross 76% 79% 80% 79% 78% 75% 74% 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 Q1 2025 8% 9% 7% 5% 4% 2% Operating margin * 2% 6% 14% 21% 27% 42% 45% * Non-GAAP fin
Slide 26: Long term model
Long term model % of revenue 2021A 2022A 2023A 2024A Q1 2025 Target Model Gross Margin 78% 76% 81% 80% 80% 85% Research & Development 28% 28% 23% 20% 24% 15% Sales & Marketing 65% 60% 44% 40% 44% 35% Non-GAAP General & Administration 21% 21% 16% 15% 14% 10% Operating Margin (38%) (33%) (2%) 6% (2%)
Slide 27: 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 28: 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 29: Appendix - Operational expenses as a percentage of revenue
Appendix - Operational expenses as a percentage of revenue* COGS as a % of revenues * 25% 26% 24% 21% R&D as a % 30% 31% 20% of revenues * 21% 20% 27% 25% 17% 19% 20% 25% 19% 18% 22% 23% 24% 23% 22% 21% 18% 20% 21% S&M as a % 65% 63% of revenues * 55% 56% 51% 46% 41% 36% 40% 40% 38% 39% 44% G&A as a
Slide 30: 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 Q1’24 Q1’25 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 170,929 195,099 46,286 53,117 Stock-based compensation expense 40 211 599 635 812 167 249 Retention payments related to bus
Slide 31: 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 Q1’24 Q1’25 Reconciliation of free cash flow Net cash (used in) provided by operating activities (3,760) (27,625) (46,065) (3,038) 30,174 10,064 4,886 Purchases of property and equipment, net (748) (2,311) (28,2
Slide 32: Thank you.
INVESTOR PRESENTATION Q1 2025 Thank you. INVESTOR PRESENTATION Q1 2025
Slide 33: 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