Similarweb Ltd. · NYSE:SMWB
Similarweb — Q1 2024 Earnings Presentation
30 slides from Similarweb's earnings presentation, May 8, 2024
Slide 1: Powering the world's businesses with the best digital data
INVESTOR PRESENTATION Q1 2024 OUR VISION Powering the world’s businesses with the best digital data INVESTOR PRESENTATION Q4 2022
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 statem
Slide 3: Introducing Similarweb
Introducing Similarweb Powering data-driven decisions of multi-billion dollar businesses by helping them: Understand market trends Benchmark performance Discover new markets, and dynamics to enable continuous prospects, revenue streams Improvement Monitor competitors and Improve customer Be among th
Slide 4: Similarweb by the numbers
Similarweb by the numbers EFFICIENT & PREDICTABLE $214M 81% 42% 58% BUSINESS MODEL RPO with 75% to be Q1 2024 gross margin of ARR is multi-year of total ARR from $100K+ ARR recognized over the next subscriptions customers 12 months Q1 2024 $59.0M 12% $236M 107% Q1 2024 revenue Q1 2024 YoY Q1 2024 Re
Slide 5: Similarweb is a digital data company that delivers actionable insights
Similarweb is a digital data company that delivers actionable insights. OUR DIGITAL DATA OUR MISSION Similarweb reveals what is happening online and To create the most accurate, provides businesses with the essential digital data comprehensive, and actionable digital data, & analytics needed to buil
Slide 6: We create our core data asset from ~1% of interactions and transactions on the internet
We create our core data asset from ~1% of interactions and transactions on the internet 1. 2. 3. 4. COLLECTION SYNTHESIS MODELING DATA SET - SIMILARWEB DIGITAL DATA ● First Party Direct Measurement > Cleaning Machine Predictive ● Search ● Content ● Contributor Network > Matching Learning Models ● Ad
Slide 7: Our proprietary Similarweb Digital Data covers extensive web and mobile activity
Our proprietary Similarweb Digital Data covers extensive web and mobile activity Traffic Engagement Content Purchase Search Industry Audience Advertising App Reach Website Usage Content Consumer Consumer Analysis Consumer Marketing App reach Transaction Intent Benchmarking Behavior spend E-commerce
Slide 8: Similarweb is vital to businesses competing in the digital world
Similarweb is vital to businesses competing in the digital world B2C (~75% of TAM) B2B (~15% of TAM) Want to sell (software or Want to capture an audience services or media) to the across all digital channels and B2C companies monetize it INVESTORS (~10% of TAM) Want to invest in B2C or B2B companie
Slide 9: Similarweb offerings help businesses win their market online
Similarweb offerings help businesses win their market online B2C B2B INVESTORS Digital Sales Stock Intelligence Intelligence Intelligence Websites Marketplaces Mobile Apps Data-as-a-Service Similarweb Digital Data INVESTOR PRESENTATION Q1 2024 INVESTOR PRESENTATION Q4 2022
Slide 10: 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 growth-related business decisions Similarweb Solution Similarweb Similarweb Similarweb Similarweb Similarweb Digital Research Digital Marketing Shopper Sales Investor Intelligence Intelligenc
Slide 11: Similarweb Product Evolution
Similarweb Our SaaS and DaaS solutions originated from how 150M+ businesses leverage our data to make decisions Product Evolution Insights delivered to drive smarter decision-making 2013-2015 2016-2018 2016-2018 2021-2022 2023-2024 Disrupting Creating 3600 Launching solutions into Deepening digital
Slide 12: Our current market opportunity
Our current market opportunity SME1 (1-500 employees) 400 million globally Large Enterprise2 (500+ employees) 440,000 globally Strategic Forbes Global 2000 Fortune Global 500 $52bn TAM ~$50,000 ~3.6mn Top 0.9% SME $2,750 Avg Price Starter/Pro + ~840,000 Top 0.1% SME + Large Ent Avg Rev Per Customer
Slide 13: Over 4,800 customers rely on us to deliver game-changing insights today
Over 4,800 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 2024 INVESTOR PRESENTATION Q4 2022
Slide 14: Our SaaS solutions are distinguished market leaders
Our SaaS solutions are distinguished market leaders 994 total reviews 64 reviews in Q1 ↑7% MARKET INTELLIGENCE COMPETITIVE INTELLIGENCE SEO SOFTWARE SOFTWARE SOFTWARE Market Intelligence Software ENTERPRISE MID-MARKET INVESTOR PRESENTATION Q1 2024 INVESTOR PRESENTATION Q4 2022
Slide 15: Similarweb recognized as a Leader in G2's Spring 2024 G2 Report
Similarweb recognized as a Leader in G2’s Spring 2024 G2 Report 90 badges across the board ACROSS ALL LEADER IN 6 KEY CATEGORIES BUSINESS SIZES WORLDWIDE Competitive Intelligence Content Analytics SEO Tools Digital Advertising Intelligence Market Intelligence Paid Search Intelligence INVESTOR PRESEN
Slide 16: 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 2024 INVESTOR PRESENTATION Q4
Slide 17: Our market potential expands long term
Our market potential expands long term Business Intelligence Software1 $23-$30B Market Research & Analysis Alternative Data (mainly services)5 Sales Audience (Investors)6 $4.4B Intelligence 4 $3-$7.7B Analytics3 $5.65B $76B Marketing Analytics Software2 $3.5-$6.1B (OEM) DaaS INVESTOR PRESENTATION Q1
Slide 18: Consistent revenue growth
Consistent Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. revenue growth +19% +13% +10% +11% +12% $59M $57M $55M $54M $53M Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 INVESTOR PRESENTATION Q1 2024 INVESTOR PRESENTATION Q4 2022
Slide 19: NRR trend reflects market environment
Our dollar-based net retention rate (NRR) historically reflects increased usage and the purchase of more NRR trend reflects than one solution by customers. Recently, our customers have become more budget constrained. In our market environment largest and most strategic customer segment, customers th
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 # of $100K+ ARR customers Average annual revenue per customer ($K) 4,844 $51 4,179 $50 $49 3
Slide 21: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 43% ARR 58% $25K-$100K 31% ARR 29% $0K-$25K 26% ARR 13% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 202 2019 2020 2021 2022 2023 4 INVESTOR PRESENTATION Q1 2024 Note: We define ARR as the annualized subscription revenue we would contract
Slide 22: Attractive sales efficiency and CAC payback metrics historically
Attractive sales efficiency and CAC payback metrics historically S&M SPEND Implied Customer retention ~55% to 60% ~45% to 50% contribution margin1 for existing customers Customer acquisition Historically implied ~50% to 55% 15-16 month payback2 for CAC currently 20-21 months INVESTOR PRESENTATION Q1
Slide 23: Margin and cash flow performance - focused on profitable growth
Margin and cash flow performance - focused on profitable growth FY’21 FY’22 FY’23 Q1’23 Q1’24 81% 80% 81% 78% 76% Non-GAAP Gross Margin (Margin %, USD mil.) $106.7 $146.9 $176.5 $42.1 $47.5 ($7.2) $2.8 ($51.7) ($63.8) ($4.8) Non-GAAP Operating (Loss)/Profit (-2%) (14%) 5% (Margin %, USD mil.) (33%)
Slide 24: Disciplined execution driving profitability
Disciplined execution driving profitability 79% 83% 81% 81% 78% 79% 80% 79% 75% 75% 74% 76% Gross Margin * Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 (46%) (45%) Operating (39%) margin * (42%) (33%) 29% 32% 30% (27%) R&D as a % of 26% (21%) 31% (1
Slide 25: Long term model
Long term model % of revenue 2020A 2021A 2022A 2023A Q1 2024 Target Model Gross Margin 77% 78% 76% 81% 81% 85% Research & Development 22% 28% 28% 23% 21% 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%) 5%
Slide 26: Led by a focused and experienced team
Led by 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 Chief
Slide 27: 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-bil
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 Q1’23 Q1’24 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 170,929 40,674 46,286 Stock-based compensation expense (40) (211) (599) 635 155 167 Retention payments related to business combin
Slide 29: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 FY'23 Q1’23 Q1’24 Reconciliation of free cash flow Net cash (used in) provided by operating activities (3,760) (27,625) (46,065) (3,038) 326 10,064 Purchases of property and equipment, net (748) (2,311) (28,257) (1,559) (1,
Slide 30: Thank you.
INVESTOR PRESENTATION Q1 2024 Thank you. INVESTOR PRESENTATION Q4 2022