Upgrade to SI Premium - Free Trial

Similarweb Announces Third Quarter 2021 Results Above Guidance Range

November 10, 2021 7:00 AM

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.

TEL AVIV, Israel--(BUSINESS WIRE)-- 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

Recent Business Highlights

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."

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

)

Press Contact:

Maayan Weiss

Similarweb

[email protected]

Investor Contact:

Annie Rosenberg

The Blueshirt Group, for Similarweb

[email protected]

Source: Similarweb Ltd.

Categories

Business Wire Press Releases

Next Articles