Fourth quarter 2021 revenue grew 51%
year-over-year to $40.2 million
NRR for $100K+ ARR customers increases to
125%
Introduces strong guidance for Q1 and 2022 with
revenue growth over 40%
Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a
leading platform for digital intelligence, today announced
financial results for its fourth quarter ended December 31,
2021.
“Q4 closed an outstanding and record-breaking year for us,” said
Or Offer, Founder and CEO of Similarweb. “Similarweb provides
companies with critical insights and actionable intelligence that
helps them win online and accelerate their growth. In 2021, we
continued our strong business execution, as can be seen by record
revenue growth rate, record customer growth rate, record NRR and
record multi-year deals. We are entering 2022 with very strong
momentum and we are extremely excited about what lies ahead.”
Fourth Quarter 2021 Financial
Highlights
Revenue
- Total revenue was $40.2 million, an increase of 51%, compared
to $29.4 million for the fourth quarter of 2020.
- Total ARR was $165 million, an increase of 44%, compared to the
fourth quarter of 2020.
Operating loss
- GAAP operating loss was $(22.9) million, compared to $(6.0)
million for the fourth quarter of 2020.
- GAAP net loss per share was $(0.32), compared to $(0.48) for
the fourth quarter of 2020.
- Non-GAAP operating loss was $(18.4) million, compared to $(4.7)
million for the fourth quarter of 2020.
- Non-GAAP operating loss per share was $(0.25), compared to
$(0.31) for the fourth quarter of 2020.
Cash
- Cash and cash equivalents totaled $128.9 million as of December
31, 2021, compared to $159.1 million as of September 30, 2021.
- Free cash flow was $(11.5) million, compared to $(1.4) million
for the fourth quarter of 2020.
Full Year 2021 Financial
Highlights
Revenue
- Total revenue was $137.7 million, an increase of 47%, compared
to $93.5 million for 2020.
Operating loss
- GAAP operating loss was $(66.1) million, compared to $(19.7)
million for 2020
- GAAP net loss per share was $(1.30), compared to $(1.58) for
2020.
- Non-GAAP operating loss was $(51.7) million, compared to
$(14.9) million for 2020.
- Non-GAAP operating loss per share was $(0.97), compared to
$(1.03) for 2020.
Cash
- Free cash flow was $(30.4) million, compared to $(4.9) million
for 2020.
Recent Business
Highlights
- Signed a new data licensing agreement with App Annie, allowing
access to an important set of App Annie’s mobile application data,
which will be incorporated into our platform.
- Grew number of customers to 3,487 as of December 31, 2021, an
increase of 28% compared to December 31, 2020.
- Grew average annual revenue per customer to $48K in the fourth
quarter of 2021, an increase of 18% compared to the fourth quarter
of 2020.
- Grew number of customers with ARR of $100,000 or more to 271,
an increase of 45% compared to December 31, 2020.
- Customers with ARR of $100,000 or more contributed 51% of the
total ARR as of December 31, 2021, compared to 49% as of December
31, 2020.
- Dollar-based net retention rate for customers with ARR of
$100,000 or more increased to 125% as compared to 113% in the
fourth quarter of 2020.
- Overall dollar-based net retention rate increased to 113% as
compared to 101% in the fourth quarter of 2020.
- Multi-year deals now comprise 33% of our overall ARR, compared
to 25% as of December 31, 2020.
- Remaining performance obligations increased 60% year over year,
to $137.5 million as of December 31, 2021.
Financial Outlook
“We are pleased with another exceptionally strong and
record-breaking quarter,” said Jason Schwartz, Chief Financial
Officer of Similarweb. “Our investments across the business are
paying off and fueling our continued rapid growth. On that basis,
we are issuing strong guidance for the first quarter and full year
2022.”
- Q1 2022 Guidance
- Total revenue between $41.1 million and $41.5 million,
representing 40% growth year over year at the mid range.
- Non-GAAP operating loss between ($20.5) million and ($20.9)
million.
- FY 2022 Guidance
- Total revenue between $193.0 million and $194.0 million,
representing 41% growth year over year at the mid range.
- Non-GAAP operating loss between ($83.0) million and ($84.0)
million, reflecting continued investment to further expand our data
moats through the previously reported acquisition of Embee Mobile
and the data licensing agreement with App Annie, as well as
increased investment in R&D and in our go-to-market which is
designed to support our continued growth plans.
The Company’s first quarter and 2022 financial outlook is based
upon 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, February 16, 2022. 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 (877) 407-0726 toll-free and at (201) 689-7806
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, retention payments related to
business combinations, amortization of intangible assets,
non-recurring expenses in relation to our initial public offering
and certain other non-recurring items.
Similarweb Ltd.
Consolidated Balance Sheet
U.S. dollars in thousands (except
share and per share data)
December 31,
2020
2021
Assets
Current assets:
Cash and cash equivalents
$
23,943
$
128,879
Short-term investments
30,000
—
Restricted deposits
1,454
11,474
Accounts receivable, net
25,257
31,017
Deferred contract costs
5,495
8,470
Prepaid expenses and other current
assets
2,096
7,847
Total current assets
88,245
187,687
Property and equipment, net
6,090
6,356
Deferred contract costs, non-current
6,030
9,208
Intangible assets and goodwill
2,868
22,935
Other non-current assets
401
813
Total assets
$
103,634
$
226,999
Liabilities and shareholders' (deficit)
equity
Current liabilities:
Borrowings under Credit Facility
$
26,853
$
—
Accounts payable
4,349
11,303
Payroll and benefit related
liabilities
11,022
17,969
Deferred revenues
53,145
76,676
Other payables and accrued expenses
12,987
28,199
Total current liabilities
108,356
134,147
Deferred revenues, non-current
743
2,074
Deferred rent
3,012
2,602
Other long-term liabilities
773
3,262
Total liabilities
112,884
142,085
Commitments and contingencies
Convertible Preferred Shares, NIS 0.01 par
value, 51,877,220 and 0 shares authorized as of December 31, 2020
and 2021 respectively, 50,657,042 and 0 shares issued and
outstanding as of December 31, 2020, and 2021 respectively,
liquidation preference of $202,483 and $0 as of December 31, 2020,
and 2021 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 2021 respectively, 15,328,449 and 74,847,609 shares
issued as of December 31, 2020 and 2021 respectively, 15,326,281
and 74,845,441 shares outstanding as of December 31, 2020 and 2021
respectively
42
205
Additional paid-in capital
25,908
324,614
Accumulated other comprehensive income
76
160
Accumulated deficit
(171,086
)
(240,065
)
Total shareholders' (deficit) equity
(145,060
)
84,914
Total liabilities, convertible
preferred shares and shareholders' (deficit) equity
$
103,634
$
226,999
Similarweb Ltd.
Consolidated Statement of Comprehensive Income
(Loss)
U.S. dollars in thousands (except
share and per share data)
Year Ended
December 31,
Three Months Ended
December 31,
2020
2021
2020
2021
Revenues
$
93,486
$
137,668
$
26,637
$
40,151
Cost of revenues
21,417
31,752
5,624
10,691
Gross profit
72,069
105,916
21,013
29,460
Operating expenses:
Research and development
22,086
44,378
6,420
14,278
Sales and marketing
53,690
93,844
15,725
27,982
General and administrative
15,967
33,801
4,912
10,103
Total operating expenses
91,743
172,023
27,057
52,363
Loss from operations
(19,674
)
(66,107
)
(6,044
)
(22,903
)
Finance expenses, net
(1,682
)
(1,891
)
(716
)
(733
)
Loss before income taxes
(21,356
)
(67,998
)
(6,760
)
(23,636
)
Income taxes
640
981
398
174
Net loss
$
(21,996
)
$
(68,979
)
$
(7,158
)
$
(23,810
)
Deemed dividend to ordinary and preferred
shareholders
$
(825
)
$
—
$
(114
)
$
—
Net loss per share attributable to
ordinary shareholders, basic and diluted
$
(1.58
)
$
(1.30
)
$
(0.48
)
$
(0.32
)
Weighted-average shares used in computing
net loss per share attributable to ordinary shareholders, basic and
diluted
14,442,172
53,201,603
15,154,590
74,685,076
Net loss
$
(21,996
)
$
(68,979
)
$
(7,158
)
$
(23,810
)
Other comprehensive income (loss), net
of tax
Change in unrealized gain (loss) on cash
flow hedges
(73
)
84
16
137
Total other comprehensive income (loss),
net of tax
(73
)
84
16
137
Total comprehensive loss
$
(22,069
)
$
(68,895
)
$
(7,142
)
$
(23,673
)
Share-based compensation costs included
above:
U.S. dollars in thousands
Year Ended
December 31,
Three Months Ended
December 31,
2020
2021
2020
2021
(in thousands)
Cost of revenues
$
40
$
211
$
15
$
90
Research and development
1,107
4,058
269
1,143
Sales and marketing
821
3,450
301
1,146
General and administrative
2,832
3,452
745
936
Total
$
4,800
$
11,171
$
1,330
$
3,315
Similarweb Ltd.
Consolidated Statement of Cash Flows
U.S. dollars in thousands
Year Ended
December 31,
Three Months Ended
December 31,
2020
2021
2020
2021
Cash flows from operating
activities:
Net loss
$
(21,996
)
$
(68,979
)
$
(7,158
)
$
(23,810
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,964
3,167
480
1,539
Finance (expense) income
(202
)
45
(198
)
249
Unrealized loss (gain) from hedging future
transactions
313
(23
)
142
(5
)
Share-based compensation
4,800
11,171
1,330
3,315
Provision for accrued interest on Credit
Facility
2
(53
)
(29
)
—
Changes in operating assets and
liabilities:
Increase in accounts receivable, net
(6,620
)
(5,132
)
(8,580
)
(5,986
)
Increase in deferred contract costs
(5,211
)
(6,127
)
(1,363
)
(2,070
)
(Increase) decrease in other current
assets
(249
)
(5,556
)
263
(2,844
)
Increase in other non-current assets
(272
)
(412
)
(332
)
(483
)
Increase in accounts payable
1,295
6,631
138
1,794
Increase in deferred revenue
12,895
24,384
10,329
12,139
Decrease in deferred rent
(443
)
(410
)
(136
)
(75
)
Increase (decrease) in other non-current
liabilities
327
475
150
(153
)
Increase in other liabilities and accrued
expenses
9,637
13,194
4,120
6,021
Net cash used in operating activities
(3,760
)
(27,625
)
(844
)
(10,369
)
Cash flows from investing
activities:
Purchases of property and equipment,
net
(748
)
(2,311
)
(320
)
(896
)
Capitalized internal-use software
costs
(387
)
(502
)
(218
)
(274
)
(Increase) decrease in restricted
deposits
(72
)
(10,020
)
(2
)
(9,758
)
(Increase) decrease in short-term
investments
(29,553
)
30,000
(30,000
)
—
Payments for business combinations, net of
cash acquired
—
(9,507
)
—
(9,007
)
Acquisition of intangible assets
—
(300
)
—
—
Net cash (used in) provided by investing
activities
(30,760
)
7,360
(30,540
)
(19,935
)
Cash flows from financing
activities:
Proceeds from issuance of Preferred C
Shares, net
39,785
—
39,785
—
Proceeds from PPP loan
1,759
—
—
—
Repayment of PPP loan
(1,759
)
—
(1,759
)
—
Proceeds from exercise of stock
options
1,442
1,222
469
492
Borrowings under Credit Facility
10,000
30,000
—
—
Repayment of Credit Facility
—
(56,800
)
—
—
Repayment of borrowings acquired in
business combinations
—
(112
)
—
(112
)
Proceeds from initial public offering, net
of underwriting fees and commissions and other issuance costs
—
150,936
—
—
Net cash provided by financing
activities
51,227
125,246
38,495
380
Effect of exchange rates on cash and cash
equivalents
202
(45
)
198
(249
)
Net increase (decrease) in cash and cash
equivalents
16,909
104,936
7,309
(30,173
)
Cash and cash equivalents, beginning of
period
7,034
23,943
16,634
159,052
Cash and cash equivalents, end of
period
$
23,943
$
128,879
$
23,943
$
128,879
Supplemental disclosure of cash flow
information:
Interest paid
$
1,148
$
531
$
295
$
3
Taxes paid
$
190
$
468
$
69
$
3
Supplemental disclosure of non-cash
financing activities:
Offering costs incurred during the period
included in accounts payable and accrued expenses
$
124
$
270
$
—
$
—
Schedule A: Business
combinations
Working capital (deficit), net (excluding
cash and cash equivalents)
$
(8,865
)
Property, plant and equipment
13
Goodwill and other intangible assets
20,374
Deferred taxes, net
(2,015
)
$
9,507
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
Year Ended December
31,
Three Months Ended December
31,
2020
2021
2020
2021
(In thousands)
Loss from operations
$
(19,674
)
$
(66,107
)
$
(6,044
)
$
(22,903
)
Share-based compensation expenses
4,800
11,171
1,331
3,315
Non-recurring fees related to initial
public offering
—
1,214
—
—
Retention payments related to business
combinations
—
1,103
—
289
Amortization of intangible assets related
to business combinations
—
608
—
608
Non-recurring expenses related to
termination of lease agreement and others
—
315
—
315
Non-GAAP operating loss
$
(14,874
)
$
(51,696
)
$
(4,713
)
$
(18,376
)
Reconciliation of Net cash used in
operating activities (GAAP) to Free cash flow
Year Ended December
31,
Three Months Ended December
31,
2020
2021
2020
2021
(In thousands)
Net cash used in operating activities
$
(3,760
)
$
(27,625
)
$
(844
)
$
(10,369
)
Purchases of property and equipment,
net
(748
)
(2,311
)
(320
)
(896
)
Capitalized internal use software
costs
(387
)
(502
)
(218
)
(274
)
Free cash flow
$
(4,895
)
$
(30,438
)
$
(1,382
)
$
(11,539
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216005501/en/
Press Contact: Richard
Krueger Similarweb press@similarweb.com
Investor Contact: Annie
Rosenberg The Blueshirt Group, for Similarweb ir@similarweb.com
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