Slide 1: Powering the World's Businesses with the Best Digital Data
INVESTOR PRESENTATION Q4 2022 OUR VISION POWERING THE WORLD’S BUSINESSES WITH THE BEST DIGITAL DATA INVESTOR PRESENTATION Q4 2022 | 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: Our Digital Data, Our Mission
OUR DIGITAL DATA OUR MISSION Similarweb reveals what is happening online and provides To create the most accurate, comprehensive, every business with the best digital data & analytics to and actionable digital data, so every business build strategy, optimize customer acquisition and can win their ma
Slide 4: Similarweb by the numbers
Similarweb ~1,074 employees & contractors in 14 offices by the Givatayim Boston Munich numbers New York London Tokyo Paris San Francisco Sydney Northern Virginia Miami Kyiv Sao Paulo Singapore Q4 2022 EFFICIENT & PREDICTABLE BUSINESS MODEL $51.3M 28% 99% 78.6% Q4 2022 revenue Q4 2022 YoY Of revenue i
Slide 5: Similarweb Digital Data Powers Business Decisions
Similarweb Digital Data Powers Business Decisions 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 improvemen
Slide 6: 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 participants across devices 1 DATA COLLECTION millions of websites and apps share their We
Slide 7: Digital Data complements internal operational systems with external perspectives
Similarweb Digital Data complements internal operational systems with actionable external perspectives that power business decision making How is my company How are competitors performing and operating? markets behaving? SALES Product walkthrough MARKETING Product walkthrough ANALYTICS Product walkt
Slide 8: 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 Stock Intelligence Intelligence Intelligence Intelligence I
Slide 9: Digital Data helps create strategy, acquire customers and increase monetization
Similarweb Digital Data helps businesses create strategy, acquire customers and increase monetization. MARKETING E-COMMERCE → More keywords → More purchases → More affiliates → More consumer insights → More campaigns → More volume → More channels → Better conversion → Better targeting SALES STRATEGY
Slide 10: Our solutions are recognized market leaders
Our solutions are recognized market leaders CORE PLATFORM PAGE 635 total reviews 105 reviews in Q4 ↑ 20% MARKET INTELLIGENCE COMPETITIVE INTELLIGENCE SEO Market Intelligence Software ENTERPRISE MID-MARKET Source: G2 INVESTOR PRESENTATION Q4 2022 | 10
Slide 11: Our durable growth strategy
Our durable growth strategy We see an expanding market ahead with strong M&A 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 Q4 2022 | 11
Slide 12: Our current market opportunity
Our current market opportunity SMB Enterprise Strategic (100-1000 employees) (1000-5000 employees) (5000+ employees) ~850,000 ~$52,000 Total Number of Companies Average Revenue Per Customer with > 100 employees1 $44 bn TAM 1 S&P Capital IQ, May 2021 2 Internal company metrics, May 2021; averages the
Slide 13: Longer term our market opportunity potential expands
Longer term our market opportunity potential expands Business Intelligence Software1 $23-$30B Alternative Data Market Research (Investors)6 & Analysis (mainly services)5 $4.4B Sales Intelligence 4 Audience Analytics3 $76B $3-$7.7B $5.65B Marketing Analytics Software2 $3.5-$6.1B (OEM) DaaS 1. ReportL
Slide 14: 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 Q4 2022 | 14
Slide 15: Independent Assessment of ROI Potential
Independent Assessment of ROI Potential We commissioned an independent study from Forrester Consulting which showed our solutions drove a return on customer investment of 642% between 2018 and 2021 for one of our customers who used our Research Intelligence and Marketing Intelligence solutions. SEE
Slide 16: Strong revenue growth
Strong revenue growth Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. YoY growth % +47% +40% +51% +51% +46% +41% +28% $193M $138M $51M $50M $48M $44M $40M FY 2021 FY 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 INVESTOR PRESE
Slide 17: Consistent NRR Performance
Consistent NRR Performance Our dollar-based net retention rate (NRR) over time indicates increased usage and the purchase of more than one solution by customers. In our largest and most strategic customer segment, customers that generate over $100K in ARR, All Customer our ability to retain and grow
Slide 18: Positive momentum in customer and account growth
Positive momentum in As we continue to strengthen our value proposition and expand our platform, we are not only scaling new customer acquisition, but also increasing average customer and account growth deal sizes. # of total customers # of $100K+ ARR customers Average annual revenue per customer ($
Slide 19: Strength of our revenue base
Strength of our revenue base $100K+ 37% ARR 55% $25K-$100K 33% ARR 31% $0K-$25K 30% ARR 14% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 INVESTOR PRESENTATION Q4 2022 | 19 Note: We define ARR as the annualized subscription revenue we would contractually expect
Slide 20: Attractive Sales Efficiency and CAC Payback Metrics Historically
Attractive Sales Efficiency and CAC Payback Metrics Historically S&M SPEND Implied Customer retention ~45% to 50% contribution margin1 ~40% to 45% for existing customers Historically implied 15-16 month Customer acquisition payback2 for CAC ~55% to 60% currently 17-18 months 1 Calculated as (TTM 12/3
Slide 21: Margin and cash flow performance
Margin and cash flow performance FY’20 FY’21 FY’22 Q4’22 79% 77% 78% 76% Non-GAAP Gross Margin (Margin %, USD mil.) $72.1 $106.7 $146.9 $40.4 Non-GAAP ($14.9) ($51.7) ($63.8) ($10.9) Operating Loss (Margin %, USD mil.) (16%) (33%) (21%) (38%) Non-GAAP Normalized Free ($4.9) ($30.4) ($61.7) ($13.8) Ca
Slide 22: Disciplined execution accelerating path to profitability
Disciplined execution accelerating path to profitability 79% 79% 78% 79% 75% 75% 74% 76% Gross Margin * Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 (46%) (45%) Operating (39%) margin * (42%) (33%) (30%) 32% 30% 29% (27%) R&D as a % of 26% (21%) 31% revenues * 26% 27% 25% 66% 65% S
Slide 23: Long Term Model
Long Term Model % of revenue 2019A 2020A 2021A 2022A Target Model Gross Margin 71% 77% 78% 76% 85% Research & 22% 22% 28% 28% 15% Development Sales & Marketing 55% 57% 65% 60% 35% Non-GAAP General & 14% 14% 21% 21% 10% Administration Operating Margin (20%) (16%) (38%) (33%) 25% Normalized Free Cash
Slide 24: 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 & Marketing Officer Sigal Gill More Carrie Lazorchak Ron Asher Uri Perel
Slide 25: We are just getting started
We are just getting started A leading platform Strong progress Attractive sales addressing towards sustained efficiency and CAC mission-critical positive free cash flow payback metrics use cases Innovative technology Early innings of a Founder-led leadership based on durable multi-billion $ TAM team a
Slide 26: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q4'21 Q4'22 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 29,460 38,920 Stock-based compensation expense (40) (211) (599) (90) (136) Retention payments related to business combinations 0 0 (1,785
Slide 27: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q4'21 Q4'22 Reconciliation of free cash flow Net cash used in operating activities (3,760) (27,625) (46,065) (10,369) (12,260) Purchases of property and equipment, net (748) (2,311) (28,257) (896) (1,932) Capitalized interna
Slide 28: Thank You
INVESTOR PRESENTATION Q4 2022 THANK YOU INVESTOR PRESENTATION Q4 2022 | 28