Third quarter 2021 revenue grew 46%
year-over-year to $35.6 million.
Exceeds $150M of ARR.
NRR for customers with ARR of $100K or more
increases to 122%.
245 customers with ARR of $100K or more, an
increase of 48% year-over-year.
Raises revenue guidance for full-year 2021.
Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a
leading platform for digital intelligence, today announced
financial results for its third quarter ended September 30,
2021.
“Q3 was Similarweb's best quarter yet. We continued to execute
well, and I’m especially pleased that we exceeded $150M in ARR,
just one year after we reached the $100M ARR milestone, while
driving record NRR across the business. Similarweb delivers
powerful data and insights that helps companies understand their
markets better than their competitors, take action faster, and grow
their revenues. In Q3 we continued our strong revenue growth,
expanded our existing customer relationships, and achieved
breakthrough deals with new products. These results reinforce our
confidence in our opportunity, our strategy, and the investments
we’re making in our future,” said Or Offer, Founder and CEO of
Similarweb.
Third Quarter 2021 Financial
Highlights
- Total revenue was $35.6 million, an increase of 46% compared to
the third quarter of 2020.
- GAAP operating loss was $(16.7) million, compared to $(4.8)
million for the third quarter of 2020.
- Non-GAAP operating loss was $(13.9) million, compared to $(2.4)
million for the third quarter of 2020.
- GAAP earnings per share, basic and diluted, was $(0.23),
compared to $(0.40) for the third quarter of 2020.
- Free cash flow was $(17.1) million, compared to $(2.3) million
compared to the third quarter of 2020.
- Cash and cash equivalents totaled $159.1 million as of
September 30, 2021, as compared to $177.0 million as of June 30,
2021.
Recent Business
Highlights
- Dollar-based net retention rate for customers with ARR of
$100,000 or more increased to 122% as compared to 114% in the third
quarter of 2020.
- Overall dollar-based net retention rate increased to 110% as
compared to 101% in the third quarter of 2020.
- Grew number of customers with ARR of $100,000 or more to 245,
an increase of 48% compared to September 30, 2020.
- Customers with ARR of $100,000 or more contributed 51% of the
total ARR as of September 30, 2021, compared to 47% as of September
30, 2020.
- Grew number of customers to 3,242 as of September 30, 2021, an
increase of 27% compared to September 30, 2020.
- Grew average annual revenue per customer to $45.0K in the third
quarter of 2021, an increase of 16% compared to the third quarter
of 2020.
- Announced the acquisition of Embee Mobile, a San
Francisco-based mobile insights provider and market leader in
mobile audience analytics, consumer panels and mobile
sampling.
Financial Outlook
“We are pleased with another quarter of strong financial and
operational performance for the business,” said Jason Schwartz,
Chief Financial Officer of Similarweb. "Given the continued,
increasing demand for our solutions, we are issuing strong guidance
for the fourth quarter and raising our full year revenue
guidance."
- Q4 2021
- Total revenue between $37.5 million and $37.9 million.
- Non-GAAP operating loss between ($18.8) million and ($19.2)
million. This includes approximately $3 million of incremental
operating costs related to the acquisition of Embee Mobile, which
we expect to close this quarter.
- FY 2021
- Total revenue between $135.0 million and $135.4 million, up
from prior range of $129.0 million to $130.0 million.
- Non-GAAP operating loss between ($52.1) million and ($52.5)
million.
The Company’s fourth quarter and 2021 financial outlook is based
on a number of assumptions that are subject to change and many of
which are outside the Company’s control. If actual results vary
from these assumptions, the Company’s expectations may change.
There can be no assurance that the Company will achieve these
results.
The Company does not provide guidance for operating loss, the
most directly comparable GAAP measure to non-GAAP operating loss,
and similarly cannot provide a reconciliation between its
forecasted non-GAAP operating loss and forecasted operating loss
without unreasonable effort due to the unavailability of reliable
estimates for certain items. These items are not within the
Company’s control and may vary greatly between periods and could
significantly impact future financial results.
Conference Call
Information
The financial results and business highlights will be discussed
on a conference call and webcast scheduled at 8:30 a.m. Eastern
Time today, November 10, 2021. A live webcast of the call can be
accessed from Similarweb’s Investor Relations website at
https://ir.similarweb.com. An archived webcast of the conference
call will also be made available on the Similarweb website
following the call. The live call may also be accessed via
telephone at (866) 682-6100 toll-free and at (862) 298-0702
internationally.
About Similarweb: As a trusted platform for understanding
online behavior, millions of people rely on Similarweb insights to
strengthen their knowledge of the digital world. We empower anyone
— from the curious individual to the enterprise business leader —
to make smarter decisions by understanding why things happen across
the digital ecosystem.
Forward-Looking Statements
This press release 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 the COVID-19 pandemic and associated global economic
uncertainty, long-term growth and overall future prospects and the
size and our ability to capitalize on our market opportunity.
Forward-looking statements include all statements that are not
historical facts. Such statements may be preceded by the words
“intends,” “may,” “will,” “plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,”
“potential” or similar words. These forward-looking statements
reflect our current views regarding our intentions, products,
services, plans, expectations, strategies and prospects, which are
based on information currently available to us and assumptions we
have made. Actual results may differ materially from those
described in such forward-looking statements and are subject to a
variety of assumptions, uncertainties, risks and factors that are
beyond our control. Such risks and uncertainties include, without
limitation, risks and uncertainties associated with (i) challenges
associated with forecasting our revenue given our recent growth and
rapid technological development, (ii) our history of net losses and
desire to increase operating expenses, thereby limiting our ability
to achieve profitability, (iii) challenges related to effectively
managing our growth, (iv) intense competition in the market and
services categories in which we participate, (v) potential
reductions in participation in our contributory network and/or
increase in the volume of opt-out requests from individuals with
respect to our collection of their date, or a decrease in our
direct measurement dataset, which could lead to a deterioration in
the depth, breadth or accuracy of our data, (vi) our inability to
attract new customers and expand subscriptions of current
customers, (vii) changes in laws, regulations, and public
perception concerning data privacy or change in the patterns of
enforcement of existing laws and regulations, (viii) our inability
to introduce new features or solutions and make enhancements to our
existing solutions, (ix) real or perceived errors, failures,
vulnerabilities or bugs in our platform, (x) potential security
breaches to our systems or to the systems of our third-party
service providers, (xi) our inability to obtain and maintain
comprehensive and reliable data to generate our insights, (xii)
changes in laws and regulations related to the Internet or changes
in the Internet infrastructure itself that may diminish the demand
for our solutions, and (xiii) failure to effectively develop and
expand our direct sales capabilities, which could harm our ability
to increase the number of organizations using our platform and
achieve broader market acceptance for our solutions.
These risks and uncertainties are more fully described in our
filings with the Securities and Exchange Commission, including in
the section entitled “Risk Factors” in our final prospectus for our
initial public offering filed with the SEC on May 12, 2021 in
connection with our initial public offering and subsequent reports
that we file with the Securities and Exchange Commission. Moreover,
we operate in a very competitive and rapidly changing environment.
New risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties and
assumptions, we cannot guarantee future results, levels of
activity, performance, achievements, or events and circumstances
reflected in the forward-looking statements will occur.
Forward-looking statements represent our beliefs and assumptions
only as of the date of this press release. Except as required by
law, we undertake no duty to update any forward-looking statements
contained in this release as a result of new information, future
events, changes in expectations or otherwise.
Certain information contained in this press release relates to
or is based on studies, publications, surveys and other data
obtained from third-party sources and the Company's own internal
estimates and research. While the Company believes these
third-party sources to be reliable as of the date of this press
release, it has not independently verified, and makes no
representation as to the adequacy, fairness, accuracy or
completeness of any information obtained from third-party sources.
In addition, all of the market data included in this press release
involves a number of assumptions and limitations, and there can be
no guarantee as to the accuracy or reliability of such assumptions.
Finally, while we believe our own internal research is reliable,
such research has not been verified by any independent source.
Non-GAAP Financial Measures
This press release contains certain financial measures that are
expressed on a non-GAAP basis. We use these non-GAAP financial
measures internally to facilitate analysis of our financial and
business trends and for internal planning and forecasting purposes.
We believe these non-GAAP financial measures, when taken
collectively, may be helpful to investors because they provide
consistency and comparability with past financial performance by
excluding certain items that may not be indicative of our business,
results of operations, or outlook. However, non-GAAP financial
measures have limitations as an analytical tool and are presented
for supplemental informational purposes only. They should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Free cash flow
represents net cash provided by (used in) operating activities less
capital expenditures and capitalized internal-use software costs.
Non-GAAP operating income (loss) represents GAAP operating income
(loss) less share-based compensation, non-recurring acquisition
related expenses and non-recurring expenses in relation to our
initial public offering.
Similarweb Ltd.
Consolidated Balance Sheet
U.S. dollars in thousands (except
share and per share data)
December 31,
September 30,
2020
2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
23,943
$
159,052
Short-term investments
30,000
—
Restricted deposits
1,454
1,716
Accounts receivable, net
25,257
24,403
Deferred contract costs
5,495
7,436
Prepaid expenses and other current
assets
2,096
4,773
Total current assets
88,245
197,380
Property and equipment, net
6,090
6,165
Deferred contract costs, noncurrent
6,030
8,146
Intangible assets and goodwill
2,868
3,829
Other non-current assets
401
330
Total assets
$
103,634
$
215,850
Liabilities and shareholders' (deficit)
equity
Current liabilities:
Borrowings under Credit Facility
$
26,853
$
—
Accounts payable
4,349
9,186
Payroll and benefit related
liabilities
11,022
15,869
Deferred revenues
53,145
65,760
Other payables and accrued expenses
13,741
16,984
Total current liabilities
109,110
107,799
Deferred revenues, non-current
743
594
Deferred rent
3,012
2,677
Other long-term liabilities
19
—
Total liabilities
112,884
111,070
Commitments and contingencies
Convertible Preferred Shares, NIS 0.01 par
value, 51,877,220 and 0 shares authorized as of December 31, 2020
and September 30, 2021 (unaudited), 50,657,042 and 0 shares issued
and outstanding as of December 31, 2020, and September 30, 2021
(unaudited), liquidation preference of $202,483 and $0 as of
December 31, 2020, and September 30, 2021 (unaudited),
respectively;
135,810
—
Shareholders' (deficit) equity
Ordinary Shares, NIS 0.01 par value,
79,176,826 and 500,000,000 shares authorized as of December 31,
2020, and September 30, 2021 (unaudited), 15,328,449 and 74,535,527
shares issued as of December 31, 2020 and September 30, 2021
(unaudited), 15,326,281 and 74,533,359 shares outstanding as of
December 31, 2020 and September 30, 2021 (unaudited),
respectively;
42
204
Additional paid-in capital
25,908
320,808
Accumulated other comprehensive income
76
23
Accumulated deficit
(171,086
)
(216,255
)
Total shareholders' (deficit) equity
(145,060
)
104,780
Total liabilities, convertible
preferred shares and shareholders' (deficit) equity
$
103,634
$
215,850
Similarweb Ltd.
Consolidated Statement of Comprehensive Income
(Loss)
U.S. dollars in thousands (except
share and per share data)
Nine Months Ended September
30,
Three Months Ended September
30,
2020
2021
2020
2021
(Unaudited)
Revenues
$
66,849
$
97,517
$
24,358
$
35,597
Cost of revenues
15,793
21,061
5,377
7,795
Gross profit
51,056
76,456
18,981
27,802
Operating expenses:
Research and development
15,666
30,100
5,949
11,422
Sales and marketing
37,965
65,862
13,173
24,150
General and administrative
11,055
23,698
4,652
8,951
Total operating expenses
64,686
119,660
23,774
44,523
Loss from operations
(13,630
)
(43,204
)
(4,793
)
(16,721
)
Finance expenses, net
(966
)
(1,158
)
(275
)
(294
)
Loss before income taxes
(14,596
)
(44,362
)
(5,068
)
(17,015
)
Income taxes
242
807
85
319
Net loss
$
(14,838
)
$
(45,169
)
$
(5,153
)
$
(17,334
)
Deemed dividend to ordinary and preferred
shareholders
$
(711
)
$
—
$
(711
)
$
—
Net loss per share attributable to
ordinary shareholders, basic and diluted
$
(1.09
)
$
(0.98
)
$
(0.40
)
$
(0.23
)
Weighted-average shares used in computing
net loss per share attributable to ordinary shareholders, basic and
diluted
14,202,965
45,961,751
14,613,333
74,506,187
Net loss
$
(14,838
)
$
(45,169
)
$
(5,153
)
$
(17,334
)
Other comprehensive income (loss), net
of tax
Change in unrealized gain (loss) on
cashflow hedges
105
(53
)
242
16
Total other comprehensive income (loss),
net of tax
105
(53
)
242
16
Total comprehensive loss
$
(14,733
)
$
(45,222
)
$
(4,911
)
$
(17,318
)
Share based compensation costs included
above:
U.S. dollars in thousands
Nine Months Ended September
30,
Three Months Ended September
30,
2020
2021
2020
2021
(in thousands)
(in thousands)
(Unaudited)
Cost of revenues
$
25
$
121
$
8
$
55
Research and development
838
2,915
632
874
Sales and marketing
520
2,304
300
966
General and administrative
2,087
2,516
1,484
834
Total
$
3,470
$
7,856
$
2,424
$
2,729
Similarweb Ltd.
Consolidated Statement of Cash Flows
U.S. dollars in thousands
Nine Months Ended September
30,
Three Months Ended September
30,
2020
2021
2020
2021
(Unaudited)
Cash flows from operating
activities:
Net loss
$
(14,838
)
$
(45,169
)
$
(5,153
)
$
(17,334
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,484
1,628
471
573
Finance income
(4
)
(204
)
62
(112
)
Unrealized loss (gain) from hedging future
transactions
171
(18
)
33
4
Share-based compensation
3,470
7,856
2,424
2,729
Provision for accrued interest on Credit
Facility
31
(53
)
11
—
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable, net
1,960
854
(733
)
(4,560
)
Increase in deferred contract costs
(3,848
)
(4,057
)
(1,210
)
(1,532
)
Increase in other current assets
(512
)
(2,712
)
(349
)
(2,496
)
Decrease in other non-current assets
60
71
—
1
Increase in accounts payable
1,157
4,837
514
886
Increase in deferred revenue
2,566
12,245
283
409
Decrease in deferred rent
(307
)
(335
)
(49
)
(108
)
Decrease in other non-current
liabilities
(33
)
(19
)
(46
)
(6
)
Increase in other liabilities and accrued
expenses
5,727
7,820
1,736
4,954
Net cash used in operating activities
(2,916
)
(17,256
)
(2,006
)
(16,592
)
Cash flows from investing
activities:
Purchases of property and equipment,
net
(428
)
(1,415
)
(126
)
(395
)
Capitalized internal-use software
costs
(169
)
(228
)
(207
)
(115
)
(Increase) decrease in restricted
deposits
(70
)
(262
)
7
249
Decrease in short-term investments
447
30,000
—
—
Payment in relation to business
combination
—
(500
)
—
—
Acquisitions of intangible assets
—
(300
)
—
—
Net cash (used in) provided by investing
activities
(220
)
27,295
(326
)
(261
)
Cash flows from financing
activities:
Proceeds from PPP loan
1,759
—
—
—
Proceeds from exercise of stock
options
973
730
486
302
Borrowings under Credit Facility
10,000
30,000
—
—
Repayment of Credit Facility
—
(56,800
)
—
—
Proceeds from initial public offering, net
of underwriting fees and commissions and other issuance costs
—
150,936
—
(1,475
)
Net cash provided by (used in) financing
activities
12,732
124,866
486
(1,173
)
Effect of exchange rates on cash and cash
equivalents
4
204
(62
)
112
Net increase (decrease) in cash and cash
equivalents
9,600
135,109
(1,908
)
(17,914
)
Cash and cash equivalents, beginning of
period
7,034
23,943
18,542
176,966
Cash and cash equivalents, end of
period
$
16,634
$
159,052
$
16,634
$
159,052
Supplemental disclosure of cash flow
information:
Interest paid
$
853
$
528
$
285
$
—
Taxes paid
$
121
$
465
$
50
$
212
Supplemental disclosure of non-cash
financing activities:
Offering costs incurred during the period
included in accounts payable and accrued expenses
$
—
$
270
$
—
$
—
Reconciliation of Non-GAAP
Financial Measures to the Most Directly Comparable GAAP
Financial Measures
Reconciliation of Loss from operations
(GAAP) to Non-GAAP operating loss
Nine Months Ended September
30,
Three Months Ended September
30,
2020
2021
2020
2021
(In thousands)
Loss from operations
$
(13,630
)
$
(43,204
)
$
(4,793
)
$
(16,721
)
Share-based compensation expenses
3,470
7,856
2,424
2,729
Non-recurring fees related to initial
public offering
—
1,214
—
—
Retention payment related to business
combination
—
814
118
Non-GAAP operating loss
$
(10,160
)
$
(33,320
)
$
(2,369
)
$
(13,874
)
Reconciliation of Net cash
used in operating activities (GAAP) to Free cash flow
Nine Months Ended September
30,
Three Months Ended September
30,
2020
2021
2020
2021
(In thousands)
Net cash used in operating activities
$
(2,916
)
$
(17,256
)
$
(2,006
)
$
(16,592
)
Capital expenditure
(428
)
(1,415
)
(126
)
(395
)
Capitalized internal use software
costs
(169
)
(228
)
(207
)
(115
)
Free cash flow
$
(3,513
)
$
(18,899
)
$
(2,339
)
$
(17,102
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110005727/en/
Press Contact: Maayan Weiss
Similarweb press@similarweb.com
Investor Contact: Annie
Rosenberg The Blueshirt Group, for Similarweb ir@similarweb.com
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