Slide 1: Investor Presentation Q2 2023: Powering the world's businesses with the best digital data
INVESTOR PRESENTATION Q2 2023 OUR VISION Powering the world’s businesses with the best digital data INVESTOR PRESENTATION Q4 2022
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: Introducing Similarweb
Introducing Similarweb Powering data-driven decisions of multi-billion dollar businesses by helping them: Understand market trends Benchmark performance Discover new markets, and dynamics to enable continuous prospects, revenue streams Improvement Monitor competitors and Improve customer Be among th
Slide 4: Similarweb by the numbers
Similarweb by the numbers EFFICIENT & PREDICTABLE 99% 79% 42% 55% BUSINESS MODEL of revenue is ARR Q2 2023 gross margin of ARR is multi-year of total ARR from $100K+ ARR subscriptions customers Q4 2022 Q2 2023 $53.7M 13% $215M 109% Q2 2023 revenue Q2 2023 YoY Q2 2023 Revenue Q2 2023 Dollar-based net
Slide 5: Similarweb is a digital data company that delivers actionable insights
Similarweb is a digital data company that delivers actionable insights. OUR DIGITAL DATA OUR MISSION Similarweb reveals what is happening online and To create the most accurate, provides businesses with the essential digital data comprehensive, and actionable digital data, & analytics needed to buil
Slide 6: We create our core data asset from ~1% of interactions and transactions on the internet
We create our core data asset from ~1% of interactions and transactions on the internet 1. 2. 3. 4. COLLECTION SYNTHESIS MODELING DATA SET - SIMILARWEB DIGITAL DATA ● First Party Direct Measurement > Cleaning Machine Predictive ● Search ● Content ● Contributor Network > Matching Learning Models ● Ad
Slide 7: Our proprietary Similarweb Digital Data covers extensive web and mobile activity
Our proprietary Similarweb Digital Data covers extensive web and mobile activity Traffic Engagement Content Purchase Search Industry Audience Advertising App Reach Website Usage Content Consumer Consumer Analysis Consumer Marketing App reach Transaction Intent Benchmarking Behavior spend E-commerce K
Slide 8: Business leaders access Similarweb Digital Data through SaaS and DaaS solutions
Business leaders access Similarweb Digital Data through our SaaS and DaaS solutions to make mission-critical growth-related business decisions Similarweb Solution Similarweb Similarweb Similarweb Similarweb Similarweb Digital Research Digital Marketing Shopper Sales Investor Intelligence Intelligenc
Slide 9: Similarweb Product Evolution
Similarweb Product Evolution Competitive Analysis Investor Intelligence Shopper Intelligence Competitive Trackers Enhanced Ticker Page My Brand Analytics Our SaaS and DaaS solutions originated from how ● ● ● ● Organic vs Paid Search ● Revenue Trend Signals ● Shopper Demographics traffic split Analyst
Slide 10: Over 4,300 customers rely on us to deliver game-changing insights today
Over 4,300 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 2023 INVESTOR PRESENTATION Q4 2022
Slide 11: Our SaaS solutions are distinguished market leaders
Our SaaS solutions are distinguished market leaders 764 total reviews 85 reviews in Q2 ↑ 13% MARKET INTELLIGENCE COMPETITIVE INTELLIGENCE SEO SOFTWARE SOFTWARE SOFTWARE Market Intelligence Software ENTERPRISE MID-MARKET INVESTOR PRESENTATION Q2 2023 INVESTOR PRESENTATION Q4 2022
Slide 12: Our current market opportunity
Our current market opportunity SMB (100-1000 employees) Enterprise (1000-5000 employees) Strategic (5000+ employees) $44bn TAM ~850,000 ~$51,000 Total Number of Companies Average Revenue Per with > 100 employees1 Customer INVESTOR PRESENTATION Q2 2023 1 S&P Capital IQ, May 2021 INVESTOR PRESENTATION
Slide 13: 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 2023 INVESTOR PRESENTATION Q4
Slide 14: 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 (OEM) DaaS INVESTOR PRESENTATION Q2
Slide 15: Consistent revenue growth
Consistent revenue Our large addressable opportunity and efficient business model have led to growing revenue sequentially and year-over-year. growth YoY growth % +46% +41% +28% +19% +13% $54M $53M $51M $50M $48M Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 INVESTOR PRESENTATION Q2 2023 INVESTOR PRESENTAT
Slide 16: NRR Exceeds 100%
NRR Exceeds Our dollar-based net retention rate (NRR) over time has indicated increased usage and the purchase of more than one solution by customers. In our largest and most strategic customer segment, customers that generate 100% over $100K in ARR, our ability to retain and grow our business consi
Slide 17: Continued progress in customer growth
As we strengthen our value proposition and expand our platform, we are scaling Continued progress in new customer acquisition at entry level pricing and packaging. Our similar annual customer growth revenue per customer Q2 23 YoY reflects how existing customers are increasing budget constraints that
Slide 18: Evolution of our revenue base over time
Evolution of our revenue base over time $100K+ 37% ARR 55% $25K-$100K 33% ARR 31% $0K-$25K 30% ARR 14% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 2022 2023 Note: We define ARR as the annualized subscription revenue we would contractually expect to receive from cu
Slide 19: Attractive sales efficiency and CAC payback metrics historically
Attractive sales efficiency and CAC payback metrics historically S&M SPEND Implied Customer retention ~50% to 55% ~45% to 50% contribution margin1 for existing customers Customer acquisition Historically implied ~50% to 55% 15-16 month payback2 for CAC currently 19-20 months 1 INVESTOR PRESENTATION Q
Slide 20: Margin and cash flow performance
Margin and cash flow performance FY’20 FY’21 FY’22 Q2’23 79% 77% 78% 76% Non-GAAP Gross Margin (Margin %, USD mil.) $72.1 $106.7 $146.9 $42.7 ($14.9) ($51.7) ($63.8) ($3.5) Non-GAAP Operating Loss (Margin %, USD mil.) (16%) (33%) (6%) (38%) Non-GAAP Normalized Free ($4.9) ($30.4) ($61.7) ($2.7) Cash
Slide 21: Disciplined execution accelerating our path to profitability
Disciplined execution accelerating our path to profitability 79% 79% 78% 79% 80% 79% 75% 75% 74% 76% Gross Margin * Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 (46%) (45%) Operating (39%) margin * (42%) (33%) (30%) 32% 30% 29% (27%) R&D as a % of 26% (21%) 31% (14%
Slide 22: Long term model
Long term model % of revenue 2020A 2021A 2022A 2023YTD Target Model Gross Margin 77% 78% 76% 80% 85% Research & Development 22% 28% 28% 24% 15% Sales & Marketing 57% 65% 60% 49% 35% Non-GAAP General & Administration 14% 21% 21% 17% 10% Operating Margin (16%) (38%) (33%) (10%) 25% Normalized Free Cas
Slide 23: Led by a focused and experienced team
Led by a focused and experienced team Or Offer Benjamin Seror Jason Schwartz Sigal Gill More Carrie Lazorchak Co-Founder & Co-Founder & Chief Financial Officer Chief People Officer Chief Revenue Officer Chief Executive Officer Chief Product & Marketing Officer Lior Degani Maoz Lakovski Ron Asher Uri Perel
Slide 24: Why own SMWB
Why own SMWB A leading platform Strong progress towards Attractive sales addressing mission-critical sustained positive free efficiency and CAC use cases cash flow payback metrics Innovative technology Early innings of a Founder-led leadership based on durable multi-billion $ TAM team and exceptional
Slide 25: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q2’22 Q2’23 Reconciliation of non-GAAP gross profit Gross profit 72,069 105,916 139,960 33,582 41,106 Stock-based compensation expense (40) (211) (599) (174) (172) Retention payments related to business combinations 0 0 (1,78
Slide 26: Appendix - GAAP to non-GAAP reconciliation (USD thousands)
Appendix - GAAP to non-GAAP reconciliation (USD thousands) FY'20 FY'21 FY'22 Q2’22 Q2’23 Reconciliation of free cash flow Net cash used in operating activities (3,760) (27,625) (46,065) (13,050) (2,305) Purchases of property and equipment, net (748) (2,311) (28,257) (14,836) (183) Capitalized interna
Slide 27: Thank you.
INVESTOR PRESENTATION Q2 2023 Thank you. INVESTOR PRESENTATION Q4 2022