Slide 1: Investor Presentation August 2022
INVESTOR PRESENTATION August 2022 Business Proprietary & Confidential | 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 Q2 2022 by the numbers
Similarweb Q2 2022 by the numbers $47.6M 46% Q2 2022 revenue Q2 2022 YoY revenue growth $190M 127% Q2 2022 Revenue Q2 2022 Dollar-based Annualized net retention rate (Q2 2022 Revenue * 4) (for $100K+ ARR customers) Efficient & Predictable Business Model 99% 74.3% Of revenue is ARR Q2 2022 gross margi
Slide 4: "How do we grow efficiently?" is top-of-mind for executives
“How do we grow efficiently?” is top-of-mind for executives, especially in times of uncertainty In 2022, CEOs view digital touch points as a top strategic driver.* * Source: EY CEO Survey 2022. Business Proprietary & Confidential | 4
Slide 5: Data that enables growth provides companies with a decisive advantage
Data that enables growth 1 2 3 provides companies with Their own data Competitor data Other market data a decisive advantage MY DATA COMPETITOR PROSPECT CUSTOMER CONSUMER PARTNER To drive growth, companies want to benchmark themselves against the entire universe in their markets, and to identify ris
Slide 6: Without access to data and actionable insights, companies operate in digital darkness
Without access to data and actionable insights, companies operate in digital darkness Business Proprietary & Confidential | 6
Slide 7: Companies spend $ billions to capture and understand their own data
Companies spend $ billions* to capture and understand their own data MODERN OPERATING SYSTEMS But the operational systems they’re investing in only show them a small slice of the terrain – data about themselves. MY DATA * Source: IDC 2021 Business Proprietary & Confidential | 7
Slide 8: Similarweb shines light on the digital landscape
Similarweb shines light on the digital landscape & provides comprehensive MARKET DATA AND INSIGHT market insights COMPETITOR PROSPECT CUSTOMER CONSUMER PARTNER We give companies visibility that enables them to optimize their strategies and MY DATA accelerate smart growth. COMPETITOR COMPETITOR Overv
Slide 9: The Similarweb Digital Growth Platform
The Similarweb Digital Growth Platform Understand market trends Improve customer and dynamics conversion rates and loyalty Monitor competitors and react instantly Discover new markets, prospects, revenue streams Benchmark performance to enable continuous Be the first to react to improvement change an
Slide 10: Our Growth Platform complements operational systems to accelerate revenue growth
Our Growth Platform complements operational systems to accelerate revenue growth How is my company What is my next operating? step to grow? Sales Marketing Analytics E-commerce Business Proprietary & Confidential | 10
Slide 11: We convert comprehensive digital data into timely and actionable market insights
We convert comprehensive digital data into timely and actionable market insights that provide our customers (and us) with substantial advantages we aggregate anonymous behavioral data from Contributor Network opt-in participants across devices 1 Data Sources millions of websites and apps share their
Slide 12: The Similarweb insights engine empowers company decision-makers
The Similarweb insights engine empowers company decision-makers responsible for accelerating growth Marketing e-Commerce → More keywords → More purchases → More affiliates → More consumer insights → More campaign → More volume → More channels → Better conversion → Better targeting Sales Strategy & Bu
Slide 13: Our data allows us to address a variety of valuable use cases
Our data and proprietary insights allow us to address a variety of valuable use cases across many different market segments Sales Data Digital Digital eCommerce Company Data & Alternative Research Marketing Insights Data Markets Enrichment Grow market share Grow user acquisition Grow eCommerce sales
Slide 14: Our solutions are recognized market leaders
Our solutions are recognized market leaders Market Intelligence Software Competitive Intelligence Software SEO Software Source: G2 Business Proprietary & Confidential | 14
Slide 15: Our efficient growth strategy
Our efficient growth strategy We see an expanding market ahead with M&A 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 | 15
Slide 16: Our current market opportunity
Our current market opportunity SMB Enterprise Strategic (100-1000 employees) (1000-5000 employees) (5000+ employees) ~850,000 ~$40,000 Total Number of Companies Total Average Contract Value (ACV) per Combined Across Segments1 Company Across Segments2 $34 bn TAM 1 S&P Capital IQ, May 2021 2 Internal
Slide 17: Over 3,800 customers rely on us to deliver game-changing insights
Over 3,800 customers rely on us to deliver game-changing insights Consumer Goods Retail Financial Services Pharma Media Travel Technology Agencies & Consulting Other Business Proprietary & Confidential | 17
Slide 18: Customer testimonial: MGM Resorts
The reason that we use Similarweb is because it gives us something we don’t have. With Google Analytics or PowerBI, we know what’s happening with us. It’s what’s happening with our competitors, our affiliates, our partners, that’s what we need to know. And there’s nothing like that. For MGM Resorts,
Slide 19: Driving strong revenue growth
Driving strong revenue growth Our large addressable opportunity and efficient business model have led to rapidly growing revenue sequentially and year-over-year. +49% +46% +51% +51% +46% $48M $44M $40M $36M $33M Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Business Proprietary & Confidential | 19
Slide 20: Strong NRR
Strong 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. $100K+ ARR Customers All Customers 127% 127%
Slide 21: Positive momentum in customer and account growth
Positive momentum in customer and account growth 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 scaling new +25% yoy +40% yoy +16% yoy customer acquisition, but also i
Slide 22: Strength of our revenue base
Strength of our revenue base $100K+ ARR 37% 53% $25K-$100K ARR 29% 31% $0K-$25K 34% ARR 16% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021 2022 Note: We define ARR as the annualized subscription revenue we would contractually expect to receive from customers
Slide 23: Attractive Sales Efficiency and CAC Payback Metrics
Attractive Sales Efficiency and CAC Payback Metrics S&M spend Implied Customer retention ~45% to 50% ~40% to 45% contribution margin1 for existing Implied customers 15-16 Customer acquisition month payback2 for ~55% to 60% customer acquisition 1 Calculated as (TTM 6/30/2022 non-GAAP gross profit– 40%
Slide 24: Margin and cash flow performance
Margin and cash flow performance FY’19 FY’20 FY’21 Q2’22 77% 78% 74% 71% Non-GAAP Gross Margin (Margin %, USD mil.) $50.1 $72.1 $106.7 $35.3 Non-GAAP ($14.1) ($14.9) ($51.7) ($19.8) Operating Loss (Margin %, USD mil.) (16%) (20%) (38%) (42%) ($11.5) ($4.9) ($30.4) (18.9) Non-GAAP Normalized Free (5%)
Slide 25: Long Term Model
Long Term Model % of revenue 2019A 2020A 2021A Target Model Gross Margin 71% 77% 78% 85% Research & 22% 22% 28% 15% Development Sales & Marketing 55% 57% 65% 35% Non-GAAP General & 14% 14% 21% 10% Administration Operating Margin (20%) (16%) (38%) 25% Free Cash Flow Margin (16%) (5%) (22%) 30% The Co
Slide 26: Led by a focused and experienced team
Led by a focused and experienced team Or Offer Benjamin Seror Jason Schwartz Lior Degani Maoz Lakovski Co-Founder & Co-Founder & Chief Financial Officer Chief Operation Officer Chief Business Officer Chief Executive Officer Chief Product Officer Sigal Gill More Carrie Lazorchak Ron Asher Uri Perelman Chief Pe
Slide 27: We are just getting started
We are just getting started A leading platform Strong and Attractive sales addressing mission-critical accelerating efficiency and CAC use cases growth payback metrics Innovative technology Early innings of a Founder-led based on durable multi-billion $ TAM leadership team and barriers to entry oppor
Slide 28: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'19 FY'20 FY'21 Q2'21 Q2'22 Reconciliation of non-GAAP gross profit Gross profit 50,078 72,069 105,916 25,514 33,582 Stock-based compensation expense (38) (40) (211) (36) (174) Retention payment related to asset acquisition 0 0 0 0 (455) Amo
Slide 29: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'19 FY'20 FY'21 Q2'21 Q2'22 Reconciliation of free cash flow Net cash used in operating activities (9,692) (3,760) (27,625) (2,606) (13,050) Capital expenditure (285) (748) (2,311) (569) (14,836) Capitalized internal-use software costs (1,
Slide 30: Thank You
THANK YOU. Business Proprietary & Confidential | 30