Slide 1: Investor Presentation Q2 2024
INVESTOR PRESENTATION Q2 2024 INVESTOR PRESENTATION Q2 2024 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 $217M 82% 44% 60% RPO with 75% Q2 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 Q2 2024 $60.6M 13% $243M 109% Q2 2024 revenue Q2
Slide 4: Our Mission
OUR MISSION To create the most accurate, comprehensive, and actionable digital data, so every business can win their market. INVESTOR PRESENTATION Q2 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 powers the world's businesses with the best Digital Data
Similarweb powers the world’s businesses with the best Digital Data 200M+ 235M+ 8M+ Websites E-commerce SKUs Mobile Apps Creating comprehensive data sets across websites, market places and mobile apps AUDIENCE & ENGAGEMENT SEARCH ADVERTISING CONTENT CONSUMER PURCHASES FIRMOGRAPHICS INVESTOR PRESENTA
Slide 7: 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 capture an audience across all Want to sell (software or digital channels and monetize it services or media) to the B2C companies INVESTORS (~10% of TAM) Want to invest in B2C or B2B companie
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 Q2 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 Apps Shopper Sales Stock Intelligence Intelligence Intelligence Intelligence Intelligence Gro
Slide 10: Over 5,000 customers rely on us to deliver game-changing insights today
Over 5,000 customers rely on us to deliver game-changing insights today CONSUMER GOODS RETAIL FINANCIAL SERVICES PHARMA MEDIA TRAVEL TECHNOLOGY AGENCIES & CONSULTING OTHER INVESTOR PRESENTATION Q2 2024 10
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: 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 13: 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 Similarweb Similarweb Similarweb Si
Slide 14: 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 ~3.6mn Top 0.9% SME $2,750 Avg Price Starter/Pro + ~840,000 Top 0.1% SME + Large Ent ~$50,000 Avg Rev Per Customer
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 Q2 2024 15
Slide 16: Financial Overview
Financial Overview INVESTOR PRESENTATION Q2 2024 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 +13% +10% +11% +12% +13% $61M $59M $57M $55M $54M Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 INVESTOR PRESENTATION Q2 2024 17
Slide 18: 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 largest and most strategic customer segment, customers that generate over $100
Slide 19: 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) 5,034 $51 $51 4,301 $49 3
Slide 20: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 43% ARR 60% $25K-$100K 33% ARR 28% $0K-$25K 24% ARR 12% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024 INVESTOR PRESENTATION Q2 2024 Note: We define ARR as the annualized subscription revenue we would contractu
Slide 21: 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% ~50% to 55% contribution margin1 for existing customers Historically implied Customer acquisition 15-16 month payback2 for CAC ~45% to 50% currently 20-21 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’21 FY’22 FY’23 Q2’23 Q2’24 81% 79% 82% 78% 76% Non-GAAP Gross Margin (Margin %, USD mil.) $106.7 $146.9 $176.5 $42.7 $49.5 ($3.5) $5.3 ($51.7) ($63.8) ($4.8) Non-GAAP Operating (Loss)/Profit (2%) (6%) 9% (Margin %, USD mil.) (33%) (38%)
Slide 23: Disciplined execution driving profitability
Disciplined execution driving profitability 83% 82% 81% 81% 78% 79% 80% 79% 75% 75% 74% 76% Gross Margin * Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (46%) (45%) Operating (39%) margin * (42%) 29% 32% 30% (27%) R&D as a % of (21%) 31% (14%) revenue
Slide 24: Long term model
Long term model % of revenue 2020A 2021A 2022A 2023A 2024 YTD Target Model Gross Margin 77% 78% 76% 81% 81% 85% Research & Development 22% 28% 28% 23% 19% 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%) 7
Slide 25: 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 Busin
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 Q2’23 Q2’24 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 170,929 41,106 48,093 Stock-based compensation expense (40) (211) (599) 635 172 223 Retention payments related to business combin
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 Q2’23 Q2’24 Reconciliation of free cash flow Net cash (used in) provided by operating activities (3,760) (27,625) (46,065) (3,038) (2,305) 7,344 Purchases of property and equipment, net (748) (2,311) (28,257) (1,559)
Slide 29: Thank you.
INVESTOR PRESENTATION Q2 2024 Thank you. INVESTOR PRESENTATION Q2 2024