Similarweb Ltd. · NYSE:SMWB
Similarweb — Q1 2023 Earnings Presentation
28 slides from Similarweb's earnings presentation, May 10, 2023
Slide 1: Investor Presentation Q1 2023: Powering the world's businesses with the best digital data
INVESTOR PRESENTATION Q1 2023 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 stateme
Slide 3: Our Digital Data and Our Mission
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 build strategy, optimize so every business can win their market. customer ac
Slide 4: Similarweb by the numbers
Similarweb by the numbers EFFICIENT & PREDICTABLE 99% 80% 40% 55% BUSINESS MODEL of revenue is ARR Q1 2023 gross margin of ARR is multi-year of total ARR from $100K+ ARR subscriptions customers Q4 2022 Q1 2023 $52.8M 19% $211M 114% Q1 2023 revenue Q1 2022 YoY Q1 2023 Revenue Q1 2023 Dollar-based net
Slide 5: Similarweb Digital Data powers critical business decisions
Similarweb Digital Data powers critical business decisions Understand market trends Benchmark performance Discover new markets, and dynamics to enable continuous prospects, revenue streams Improvement Monitor competitors and Improve customer Be among the first to react to react instantly conversion r
Slide 6: Our unique approach to creating timely and actionable market insights
Our unique approach to creating timely and actionable market insights 1. 2. 3. 4. COLLECTION SYNTHESIS MODELING DATA DELIVERY ● First Party Direct Measurement > Cleaning Machine Predictive ● Search ● Content ● Contributor Network > Matching Learning Models ● Advertising ● Audience ● Public Data > Sy
Slide 7: Similarweb Digital Data Coverage
Similarweb Digital Data Coverage 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 Keyword Audience MAUs/ DAUs Total Visits Bounce R
Slide 8: Digital Data enhances internal operational systems with external perspectives
Similarweb Digital Data enhances internal operational systems with actionable external perspectives that power business decision making SALES MARKETING ANALYTICS E-COMMERCE How is my company operating? How are competitors performing Similarweb Similarweb Similarweb Similarweb and markets Sales Digit
Slide 9: Proprietary digital data drives use cases across market segments
Our proprietary Similarweb Digital Data drives a variety of valuable use cases across many different market segments Similarweb Solution Similarweb Similarweb Similarweb Similarweb Similarweb Digital Research Digital Marketing Shopper Sales Investor Intelligence Intelligence Intelligence Intelligenc
Slide 10: Digital Data helps create strategy, acquire customers and increase monetization
Similarweb Digital Data helps businesses create strategy, acquire customers and increase monetization BUSINESS STRATEGY && STRATEGY BUSINESS MARKETING SALES E-COMMERCE ● More markets & ● More keywords ● More leads ● More purchases product lines ● More affiliates ● More wins ● More consumer insights ●
Slide 11: Our SaaS solutions are distinguished market leaders
Our SaaS solutions are distinguished market leaders 679 total reviews 44 reviews in Q1 ↑ 7% MARKET INTELLIGENCE COMPETITIVE INTELLIGENCE SEO SOFTWARE SOFTWARE SOFTWARE Market Intelligence Software ENTERPRISE MID-MARKET INVESTOR PRESENTATION Q1 2023 INVESTOR PRESENTATION Q4 2022
Slide 12: 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 2023 INVESTOR PRESENTATION Q4
Slide 13: Our current market opportunity
Our current market opportunity SMB (100-1000 employees) Enterprise (1000-5000 employees) Strategic (5000+ employees) $44bn TAM ~850,000 ~$51,000 Total Number of Companies Average Revenue Per with > 100 employees1 Customer INVESTOR PRESENTATION Q1 2023 1 S&P Capital IQ, May 2021 INVESTOR PRESENTATION
Slide 14: 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 15: Over 4,000 customers rely on us to deliver game-changing insights
Over 4,000 customers rely on us to deliver game-changing insights CONSUMER GOODS RETAIL FINANCIAL SERVICES PHARMA MEDIA TRAVEL TECHNOLOGY AGENCIES & CONSULTING OTHER INVESTOR PRESENTATION Q1 2023 INVESTOR PRESENTATION Q4 2022
Slide 16: Steady revenue growth
Steady revenue growth Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. YoY growth % +51% +46% +41% +28% +19% $53M $51M $50M $48M $44M Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 INVESTOR PRESENTATION Q1 2023 INVESTOR PRESENTATION
Slide 17: NRR Consistently Exceeds 100%
NRR Consistently Our dollar-based net retention rate (NRR) over time has indicated increased usage and the purchase of more than one solution by customers. In our largest and most strategic customer segment, customers that generate Exceeds 100% over $100K in ARR, our ability to retain and grow our b
Slide 18: Continued progress in both customer and account growth
Continued progress in both As we strengthen our value proposition and expand our platform, we are scaling new customer acquisition and increasing average deal sizes. Our annual revenue customer and account growth per customer Q1 23 YoY reflects strong customer retention under increasing budget constr
Slide 19: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 37% ARR 55% $25K-$100K 33% ARR 31% $0K-$25K 30% ARR 14% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 Note: We define ARR as the annualized subscription revenue we would contractually expect to receive from cu
Slide 20: Attractive sales efficiency and CAC payback metrics historically
Attractive sales efficiency and CAC payback metrics historically S&M SPEND Implied Customer retention ~50% to 55% ~45% to 50% contribution margin1 for existing customers Customer acquisition Historically implied ~50% to 55% 15-16 month payback2 for CAC currently 19-20 months 1 INVESTOR PRESENTATION Q
Slide 21: Margin and cash flow performance
Margin and cash flow performance FY’20 FY’21 FY’22 Q1’23 80% 77% 78% 76% Non-GAAP Gross Margin (Margin %, USD mil.) $72.1 $106.7 $146.9 $42.1 ($14.9) ($51.7) ($63.8) ($7.2) Non-GAAP Operating Loss (Margin %, USD mil.) (16%) (33%) (14%) (38%) Non-GAAP Normalized Free ($4.9) ($30.4) ($61.7) ($0.6) Cash
Slide 22: Disciplined execution accelerating our path to profitability
Disciplined execution accelerating our path to profitability 79% 79% 78% 79% 80% 75% 75% 74% 76% Gross Margin * Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (46%) (45%) Operating (39%) margin * (42%) (33%) (30%) 32% 30% 29% (27%) R&D as a % of 26% (21%) 31% (14%) revenues *
Slide 23: Long term model
Long term model % of revenue 2020A 2021A 2022A 2023YTD Target Model Gross Margin 77% 78% 76% 80% 85% Research & Development 22% 28% 28% 25% 15% Sales & Marketing 57% 65% 60% 51% 35% Non-GAAP General & Administration 14% 21% 21% 18% 10% Operating Margin (16%) (38%) (33%) (14%) 25% Normalized Free Cas
Slide 24: Led by a focused and experienced team
Led by a focused and experienced team Or Offer Benjamin Seror Jason Schwartz Sigal Gill More Carrie Lazorchak Co-Founder & Co-Founder & Chief Financial Officer Chief People Officer Chief Revenue Officer Chief Executive Officer Chief Product & Marketing Officer Lior Degani Maoz Lakovski Ron Asher Uri Perel
Slide 25: Why own SMWB
Why own SMWB A leading platform Strong progress towards Attractive sales addressing mission-critical sustained positive free efficiency and CAC use cases cash flow payback metrics Innovative technology Early innings of a Founder-led leadership based on durable multi-billion $ TAM team and exceptional
Slide 26: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q1’22 Q1’23 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 31,185 40,674 Stock-based compensation expense (40) (211) (599) (146) (155) Retention payments related to business combinations 0 0 (1,78
Slide 27: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q1’22 Q1’23 Reconciliation of free cash flow Net cash used in operating activities (3,760) (27,625) (46,065) 914 326 Purchases of property and equipment, net (748) (2,311) (28,257) (4,784) (1,132) Capitalized internal-use so
Slide 28: Thank you.
INVESTOR PRESENTATION Q1 2023 Thank you. INVESTOR PRESENTATION Q4 2022