Similarweb Ltd. · NYSE:SMWB
Similarweb — Q2 2021 Earnings Presentation
24 slides from Similarweb's earnings presentation, Aug 11, 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION August 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 $130M 79% Annualized GAAP revenue gross margin run rate 49% 99% Year-over-year Subscription revenue growth revenue ~800 employees & 10 offices Tel Aviv - New York - London - Tokyo - Sao Paulo - Boston - Paris - 118% 49% San Francisco - Sydney - Munich - Washington Net dollar
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: 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: Our platform is a one stop shop for mission critical 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 $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 insights contract Daily data solutions 1st
Slide 13: Over 3,000 customers rely on us to deliver game-changing insights
Over 3,000 customers rely on us to deliver game-changing insights Consumer Goods Retail Financial Services Top Fortune 500 Customers 9 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: A 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: Attractive sales efficiency and CAC payback metrics
Attractive sales efficiency and CAC payback metrics S&M spend Customer retention and Implied expansion 13% ~40% 1 operating margin for existing customers Implied 14 month Customer acquisition payback2 for ~60% customer acquisition 1 Calculated as TTM 6/30/2021 non-GAAP gross margin – TTM 6/30/2021 no
Slide 16: 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 3,068 $44 customer acquisition, but also increasing average deal s
Slide 17: Strong and growing NRR
Strong and growing NRR We have significantly improved our net dollar-based 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. 118% 115% 114% 114% 113% 115% 106
Slide 18: Strong unit economics result in expanding customer value
Strong unit economics result in expanding customer value $100K+ 35% ARR 49% $25K-$100K 28% ARR 34% $0K-$25K 37% ARR 17% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021 Note: We define ARR as the annualized subscription revenue we would contractually expect to receive f
Slide 19: Driving accelerating revenue growth
Driving accelerating revenue growth Our large addressable opportunity and efficient business model have led to accelerating revenue quarter-over-quarter. YoY growth % 46% 28% 32% 38% 43% 49% $32 $62 $29 $27 $M $42 $24 $22 H1 2020 H1 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Business Proprietary & C
Slide 20: Margin and cash flow performance
Margin and cash flow performance FY’18 FY’19 FY’20 Q1’21 Q2’21 79% 79% 77% 71% 54% Gross Margin (Margin %, USD mil.) $28.0 $50.1 $72.1 $23.2 $25.6 (59%) (20%) (16%) (29%) (33%) Non-GAAP Operating Loss (Margin %, USD mil.) ($14.9) ($14.1) ($8.7) ($10.8) ($30.5) 6% (50%) (16%) (5%) (10%) Free Cash Flow
Slide 21: 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 | 21
Slide 22: 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 23: 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 24: Official Measure of the Digital World
OFFICIAL MEASURE OF THE DIGITAL WORLD Business Proprietary & Confidential | 24