Similarweb Ltd. · NYSE:SMWB
Similarweb — Q3 2021 Earnings Presentation
24 slides from Similarweb's earnings presentation, Nov 10, 2021
Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION November 2021 Business Proprietary & Confidential | 1
Slide 2: Notes Regarding This Presentation
NOTES REGARDING THIS PRESENTATION This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to the expected performance of our business, future financial results, strategy, the potential impacts of t
Slide 3: Similarweb by the numbers
Similarweb by the numbers 78% $150M gross margin ARR 46% 99% Year-over-year Subscription revenue growth revenue ~900 employees & 12 offices Tel Aviv - New York - London - Tokyo - Sao Paulo - Boston - Paris - San Francisco - Sydney - Munich - Northern Virginia - Kyiv 122% 51% Dollar-based net ARR from
Slide 4: Digital has fundamentally transformed how we live, work, and play
Digital has fundamentally transformed how we live, work, and play Practically everything — products, entertainment, communication, services, education, healthcare — is now available online. As consumers and businesses shift their budgets online, digital strategy is now critical for companies. Busine
Slide 5: Competition for digital leadership is intense
Competition for digital leadership is intense In digital, new threats can come out of anywhere. Traditional barriers to entry like capital, facilities, and inventory don’t apply. Anyone can reach an audience of millions, instantly, with no geographic barriers. Disruption is the norm, and blind spots
Slide 6: Superior information is a decisive advantage in the digital economy
Superior information is a decisive advantage in the digital economy Critical business functions in modern companies are now fueled by data. Marketing is Sales is eCommerce is Investing is data-driven data-driven data-driven data-driven Business Proprietary & Confidential | 6
Slide 7: A new kind of platform is needed: digital intelligence
A new kind of platform is needed: digital intelligence Companies with better market data and insight make smarter business decisions — enabling them to win consistently Understand market trends and dynamics Monitor competitors and react instantly Benchmark performance to enable continuous improvemen
Slide 8: Similarweb is a leading comprehensive platform for digital intelligence
Global Coverage Similarweb is a leading Websites Content Apps comprehensive Pages platform for digital intelligence Search Terms Audiences Similarweb delivers game changing insights which provide a competitive advantage for organizations Display Ads Product SKUs across a wide range of industries on
Slide 9: Invested over $100 million in a differentiated approach to measure the digital world
We’ve invested over $100 million, building a differentiated approach to measure the digital world — and a significant barrier to entry 1 2 3 4 Collection Synthesis Modeling Digital Intelligence First Party Direct Measurement Anonymous Behavioral Data Public Data Partnerships Machine Learning Search C
Slide 10: Use Cases
Our platform is a one stop shop for mission critical, data intensive use cases Understand buying Understand trends and Increase user acquisition Grow pipeline Make better investment behavior and improve grow market share and efficiency and increase win rates decisions conversion Use Cases ● Digital
Slide 11: Our intuitive interface surfaces the most relevant insights
Our intuitive interface surfaces the most relevant insights and is easily accessible to any user Global Coverage Traffic and Engagement Across Categories Across Marketing By Device Channels Business Proprietary & Confidential | 11
Slide 12: We are constantly innovating to deliver industry-leading intelligence
We are constantly innovating to deliver industry-leading intelligence 1st $5M+ customer contract $150M ARR $100M ARR Enhanced APIs Path-to- Intelligent alerts $50M purchase ARR Stock and sector Real-time insights 1st $1M Introduction of five Amazon and customer marketplace distinct intelligence insig
Slide 13: Over 3,200 customers rely on us to deliver game-changing insights
Over 3,200 customers rely on us to deliver game-changing insights Consumer Goods Retail Financial Services Top Fortune 500 Customers 8 of the top 10 Technology companies Financial Pharma Media Travel 7 of the top 10 services companies Household 8 of the top 10 products companies 5 of the top 10 comp
Slide 14: Highly efficient land-and-expand model
We’ve created a highly efficient land-and-expand model Free offerings attract >20M users per year and result in hundreds of thousands of leads, at near-zero marginal cost Demand Generation Freemium → Free Trial Targeted sales Programmatic motion, organized approach to by firmographics Advocacy custome
Slide 15: Accelerating customer acquisition
Accelerating customer acquisition As we continue to strengthen # of total customers # of $100K+ ARR customers Average annual revenue per our value proposition and customer ($K) expand our platform, we are not only rapidly scaling new 3,242 $45 customer acquisition, but also increasing average deal s
Slide 16: Strong and growing NRR
Strong and growing NRR We have significantly improved our dollar-based net retention rate (NRR) over time. In our largest and most strategic customer segment, customers that generate over $100K in ARR, our ability to retain and grow our business is especially strong. 122% 118% 115% 114% 114% 113% 115
Slide 17: Strong unit economics result in expanding customer value
Strong unit economics result in expanding customer value $100K+ 35% ARR 51% $25K-$100K 28% ARR 33% $0K-$25K 37% ARR 16% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Note: We define ARR as the annualized subscription revenue we would contractually expect to receiv
Slide 18: Driving strong revenue growth
Driving strong revenue growth Our large addressable opportunity and efficient business model have led to rapidly growing revenue quarter-over-quarter. YoY growth % 46% 32% 38% 43% 49% 46% $35.6 $97.5 $32.5 $29.4 $M $66.8 $26.6 $24.4 YTD Q3 2020 YTD Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Busin
Slide 19: Margin and cash flow performance
Margin and cash flow performance FY’18 FY’19 FY’20 YTD Q3’20 YTD Q3’21 79% 77% 76% 71% 54% Gross Margin (Margin %, USD mil.) $28.0 $50.1 $72.1 $51.1 $76.6 ($30.5) ($14.1) ($14.9) ($10.2) ($33.3) Operating Loss (Margin %, USD mil.) (16%) (15%) (20%) (34%) (59%) ($25.8) ($11.5) ($4.9) ($3.5) ($18.9) Fr
Slide 20: A solid growth strategy
A solid growth strategy M&A We see a rapidly expanding market ahead with immense 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 Business Proprietary & Confidential | 20
Slide 21: Led by a focused and experienced team
Led by a focused and experienced team Or Offer Benjamin Seror Jason Schwartz Carrie Lazorchak Co-Founder & Co-Founder & Chief Financial Officer Chief Revenue Officer Chief Executive Officer Chief Product Officer Kevin Spurway Sigal Gill More Dan Yalon Ron Asher Chief Marketing Officer Chief People Officer Chief
Slide 22: We are just getting started
We are just getting started Leading platform Strong and Attractive sales addressing mission-critical accelerating efficiency and CAC use cases growth payback metrics Innovative technology Early innings of a massive Founder-led based on durable TAM opportunity leadership team and barriers to entry exc
Slide 23: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'18 FY'19 FY'20 YTD Q3’20 YTD Q3’21 Reconciliation of non-GAAP gross profit Gross profit 28,008 50,078 72,069 51,056 76,456 Share-based compensation expense (28) (38) (40) (25) (121) Non-GAAP gross profit 28,036 50,116 72,109 51,081 76,577 No
Slide 24: Official Measure of the Digital World
OFFICIAL MEASURE OF THE DIGITAL WORLD Business Proprietary & Confidential | 24