EX-99.1 2 a6-kxexhibit991xq230062024.htm EX-99.1 Document
Exhibit 99.1

SIMILARWEB ANNOUNCES SECOND QUARTER 2024 RESULTS
Revenue growth accelerated for the third consecutive quarter
Fourth consecutive quarter of non-GAAP operating profit
Raising guidance for 2024 revenue and non-GAAP operating profit
TEL AVIV, ISRAEL -- Aug 6, 2024 -- Similarweb Ltd. (NYSE: SMWB) ("Similarweb" or the "Company"), a leading digital data and analytics company powering critical business decisions, today announced financial results for its second quarter ended June 30, 2024. The Company published a letter to shareholders from management discussing these results, which can be accessed at the link: https://ir.similarweb.com/financials/quarterly-results, located on the Company's investor relations website.
“We delivered another strong quarter with accelerating revenue and customer growth, record profitability and solid free cash flow, providing us with the confidence to raise our 2024 revenue and profit guidance,” stated Or Offer, Co-Founder and CEO of Similarweb. “Revenue growth in the second quarter accelerated to 13%, the third consecutive quarter of accelerating growth. We believe revenue growth will continue to accelerate in the second half of 2024 and have reflected this in our outlook. We increased our customer base by 17% to more than 5,000 customers, including our first eight-figure ARR customer.” Offer concluded, “We are just beginning to tap into the vast potential of our data and the addressable markets we serve.”
Second Quarter 2024 Financial Highlights
•Total revenue was $60.6 million, an increase of 13% compared to $53.7 million for the second quarter of 2023.
•GAAP operating loss was $(1.0) million or (2)% of revenue, compared to $(9.8) million or (18)% of revenue for the second quarter of 2023.
•GAAP net loss per share was $(0.01), compared to $(0.12) for the second quarter of 2023.
•Non-GAAP operating profit was $5.3 million or 9% of revenue, compared to non-GAAP operating loss of $(3.5) million or (6)% of revenue for the second quarter of 2023.
•Non-GAAP operating profit per share was $0.07, compared to non-GAAP operating loss per share of $(0.04) for the second quarter of 2023.
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Exhibit 99.1
•Cash and cash equivalents totalled $61.8 million as of June 30, 2024, compared to $71.7 million as of December 31, 2023.
•Net cash provided by (used in) operating activities was $7.3 million, compared to $(2.3) million for the second quarter of 2023.
•Free cash flow was $6.3 million, compared to $(2.8) million for the second quarter of 2023.
Recent Business Highlights
•Grew number of customers to 5,034 as of June 30, 2024, an increase of 17% compared to June 30, 2023.
•Grew number of customers with ARR of $100,000 or more to 383, an increase of 8% compared to June 30, 2023.
•Secured the first 8-figure ARR customer after signing a large contract with an existing customer.
•Customers with ARR of $100,000 or more contributed 60% of the total ARR as of June 30, 2024, compared to 55% as of June 30, 2023.
•Dollar-based net retention rate for customers with ARR of $100,000 or more was 109% in the second quarter of 2024, an increase from the first quarter of 2024.
•Overall dollar-based net retention rate was 99% in the second quarter of 2024, an increase from the first quarter of 2024.
•44% of our overall ARR is contracted under multi-year subscriptions as of June 30, 2024, as compared to 42% as of June 30, 2023.
•Remaining performance obligations increased 24% year-over-year, to $216.6 million as of June 30, 2024, as compared to $174.8 million as of June 30, 2023.
•Acquired 42matters AG, a leading app intelligence provider based in Zurich, Switzerland, on July 1, 2024.
•Extended the $75 million SVB Credit Facility for an additional 2-year term through December 31, 2026.
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Exhibit 99.1

Financial Outlook
"Revenue growth continued to accelerate this quarter, driven by new customer acquisition and improving retention,” stated Jason Schwartz, Chief Financial Officer of Similarweb. “Our operational performance this quarter highlights our commitment to disciplined execution." He further noted, “We achieved a fourth consecutive quarter of operating profit and generated $16 million in free cash flow in the first half of 2024. Given these results, which exceeded our expectations, we are raising our revenue and non-GAAP operating profit outlook for the full year 2024." Schwartz emphasized the company's progress, saying, “We are making significant strides towards our long-term profit and free cash flow targets.”
•Q3 2024 Guidance
◦Total revenue estimated between $62.5 million and $63.0 million, representing approximately 15% growth year over year at the mid-point of the range.
◦Non-GAAP operating profit estimated between $2.8 million and $3.2 million.
•FY 2024 Guidance
◦Total revenue estimated between $246.0 million and $248.0 million.
◦Non-GAAP operating profit estimated between $13.0 million and $15.0 million.
The Company’s third quarter and full year 2024 financial outlook is based upon a number of assumptions that are subject to change and many of which are outside the Company’s control. Actual results may vary from these assumptions, and 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 and gross margin, the most directly comparable GAAP measures to non-GAAP operating loss and non-GAAP gross margin, respectively, and similarly cannot provide a reconciliation of these measures to their closest GAAP equivalents 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.

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Exhibit 99.1
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 on Wednesday, August 7, 2024. 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 (888) 437-3179 toll-free and at (862) 298-0702 internationally.

About Similarweb: Similarweb powers businesses to win their markets with Digital Data. By providing essential web and app data, analytics, and insights, we empower our users to discover business opportunities, identify competitive threats, optimize strategy, acquire the right customers, and increase monetization. Similarweb products are integrated into users’ workflow, powered by advanced technology, and based on leading comprehensive Digital Data.

Forward-Looking Statements
This press release 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, including statements relating to our guidance for the third quarter and full year of 2024 described under "Financial Outlook". 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 number of known and unknown risks, uncertainties, other factors and assumptions that are beyond our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) our expectations regarding our revenue, expenses and other operating results; (ii) our ability to acquire new customers and successfully retain existing customers; (iii) our ability to increase usage of our solutions and upsell and cross-sell additional solutions; (iv) our ability to achieve or sustain profitability; (v) anticipated trends, growth rates, rising interest rates, rising global inflation and current macroeconomic conditions, challenges in our business and in the markets in which we operate, and the impact of Israel's war with Hamas and other terrorist organizations and potential hostilities with Iran or Lebanon on geopolitical and macroeconomic conditions or on our company and business; (vi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital
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Exhibit 99.1
requirements; (vii) the costs and success of our sales and marketing efforts and our ability to promote our brand; (viii) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (ix) our ability to effectively manage our growth, including continued international expansion; (x) our reliance on certain third party platforms and sources for the collection of data necessary for our solutions; (xi) our ability to protect our intellectual property rights and any costs associated therewith; (xii) our ability to identify and complete acquisitions that complement and expand our reach and platform; (xiii) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business, including in Israel, the United States, the European Union, the United Kingdom and other jurisdictions where we elect to do business; (xiv) our ability to compete effectively with existing competitors and new market entrants; and (xv) the growth rates of the markets in which we compete.

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 Form 20-F filed with the Securities and Exchange Commission on February 28, 2024, 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.
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
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Exhibit 99.1
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. Normalized free cash flow represents free cash flow less capital investments related to the Company's new headquarters, payments received in connection with these capital investments and deferred payments related to business combinations. Non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses represent the comparable GAAP financial figure operating income (loss) or expense, less share-based compensation, adjustments and payments related to business combinations, amortization of intangible assets and certain other non-recurring items, as applicable and indicated in the below tables.

Other Metrics
Customer acquisition costs (CAC) represent the portion of sales and marketing expenses allocated to acquire new customers. Customer retention costs (CRC) represent the portion of sales and marketing expenses allocated to retain existing customers and to increase existing customers’ subscriptions. Annual recurring revenue (ARR) represents the annualized subscription revenue we would contractually expect to receive from customers assuming no increases or reductions in their subscriptions. CAC payback period is the estimated time in months to recover CAC in terms of incremental gross profit that newly acquired customers generate. Net retention rate (NRR) represents the comparison of our ARR from the same set of customers as of a certain point in time, relative to the same point in time in the previous year ago period, expressed as a percentage.

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Exhibit 99.1


Press Contact:
David Carr
Similarweb
press@similarweb.com

Investor Contact:
Rami Myerson
Similarweb
rami.myerson@similarweb.com
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Exhibit 99.1
Similarweb Ltd.
Consolidated Balance Sheets
U.S. dollars in thousands (except share and per share data)

December 31,June 30,
20232024
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$71,732 $61,791 
Restricted deposits10,020 10,309 
Accounts receivable, net47,869 38,631 
Deferred contract costs11,165 10,962 
Prepaid expenses and other current assets5,599 7,704 
Total current assets146,385 129,397 
Property and equipment, net28,630 27,141 
Deferred contract costs, non-current9,845 9,465 
Operating lease right-of-use assets36,007 35,815 
Goodwill and Intangible assets, net17,652 19,989 
Other non-current assets494 447 
Total assets$239,013 $222,254 
Liabilities and shareholders' equity
Current liabilities:
Borrowings under Credit Facility$25,000 $— 
Accounts payable8,422 5,037 
Payroll and benefit related liabilities20,437 16,755 
Deferred revenue99,968 108,000 
Other payables and accrued expenses23,263 24,760 
Operating lease liabilities7,095 6,834 
Total current liabilities184,185 161,386 
Deferred revenue, non-current878 694 
Operating lease liabilities, non-current35,329 32,885 
Other long-term liabilities3,074 3,846 
Total liabilities223,466 198,811 
Shareholders' equity
 Ordinary Shares, NIS 0.01 par value 500,000,000 shares authorized as of December 31, 2023 and June 30, 2024 (unaudited), 78,653,046 and 80,921,451 shares issued as of December 31, 2023 and June 30, 2024 (unaudited), 78,650,878 and 80,919,283 outstanding as of December 31, 2023 and June 30, 2024 (unaudited), respectively;
216 222 
Additional paid-in capital367,558 379,799 
Accumulated other comprehensive income (loss)872 (8)
Accumulated deficit(353,099)(356,570)
Total shareholders' equity15,547 23,443 
Total liabilities and shareholders' equity$239,013 $222,254 
    
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Exhibit 99.1
Similarweb Ltd.
Consolidated Statements of Comprehensive Income (Loss)
U.S. dollars in thousands (except share and per share data)
Six Months Ended June 30,Three Months Ended June 30,
2023202420232024
(Unaudited)(Unaudited)
Revenue$106,431 $119,619 $53,681 $60,637 
Cost of revenue24,651 25,240 12,575 12,544 
Gross profit81,780 94,379 41,106 48,093 
Operating expenses:
Research and development28,253 25,778 13,902 12,239 
Sales and marketing55,088 51,097 26,422 25,857 
General and administrative21,276 21,141 10,539 10,950 
Total operating expenses104,617 98,016 50,863 49,046 
Loss from operations(22,837)(3,637)(9,757)(953)
Finance income, net1,965 1,278 610 823 
Loss before income taxes(20,872)(2,359)(9,147)(130)
Provision for income taxes255 1,112 146 608 
Net loss$(21,127)$(3,471)$(9,293)$(738)
Net loss per share attributable to ordinary shareholders, basic and diluted$(0.27)$(0.04)$(0.12)$(0.01)
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted77,222,490 79,969,425 77,579,279 80,570,892 
Net loss$(21,127)$(3,471)$(9,293)$(738)
Other comprehensive loss, net of tax
Change in unrealized (loss) gain on cashflow hedges(232)(880)45 (363)
Total other comprehensive (loss) income, net of tax(232)(880)45 (363)
Total comprehensive loss$(21,359)$(4,351)$(9,248)$(1,101)
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Exhibit 99.1
Share-based compensation costs included above:
U.S. dollars in thousands
Six Months Ended June 30,Three months Ended June 30,
2023202420232024
(Unaudited)(Unaudited)
Cost of revenue$327 $390 $172 $223 
Research and development2,850 2,802 1,460 1,357 
Sales and marketing2,730 1,991 1,356 806 
General and administrative3,191 3,402 1,701 2,072 
Total$9,098 $8,585 $4,689 $4,458 
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Exhibit 99.1
Similarweb Ltd.
Consolidated Statements of Cash Flows
U.S. dollars in thousands
Six Months Ended June 30,Three Months Ended June 30,
2023202420232024
(Unaudited)(Unaudited)
Cash flows from operating activities:
Net loss$(21,127)$(3,471)$(9,293)$(738)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization5,112 5,139 2,572 2,619 
Finance expense869 466 662 230 
Unrealized loss from hedging future transactions4 60 31 29 
Share-based compensation9,098 8,585 4,689 4,458 
Loss (gain) from sale of equipment1 (7)(1)(3)
Changes in operating assets and liabilities:
Change in operating lease right-of-use assets and liabilities, net(2,415)(2,513)(1,190)(242)
Decrease in accounts receivable, net5,633 9,619 4,989 2,626 
Decrease in deferred contract costs2,590 583 1,141 170 
Increase in other current assets(880)(2,917)(1,130)(1,593)
Decrease (increase) in other non-current assets417 47 (14)14 
Increase (decrease) in accounts payable343 (3,258)1,402 (799)
Increase (decrease) in deferred revenue2,941 7,316 (4,302)328 
(Decrease) increase in other non-current liabilities(319)620 (225)426 
Decrease in other liabilities and accrued expenses(4,246)(2,857)(1,636)(181)
Net cash (used in) provided by operating activities(1,979)17,412 (2,305)7,344 
Cash flows from investing activities:
Purchase of property and equipment, net(1,315)(908)(183)(540)
Capitalized internal-use software costs(707)(469)(274)(469)
Increase in restricted deposits(87)(289)(43)(121)
Payment for business combinations, net of cash acquired— (3,833)— (24)
Net cash used in investing activities(2,109)(5,499)(500)(1,154)
Cash flows from financing activities:
Proceeds from exercise of stock options1,830 3,057 438 386 
Proceeds from employee share purchase plan660 555 660 555 
Repayment of Credit Facility— (25,000)— — 
Payments of contingent consideration, net(2,363)— — — 
Net cash provided by (used in) financing activities127 (21,388)1,098 941 
Effect of exchange rates on cash and cash equivalents(869)(466)(662)(230)
Net (decrease) increase in cash and cash equivalents(4,830)(9,941)(2,369)6,901 
Cash and cash equivalents, beginning of period77,810 71,732 75,349 54,890 
Cash and cash equivalents, end of period$72,980 $61,791 $72,980 $61,791 
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Exhibit 99.1
Supplemental disclosure of cash flow information:
Interest received, net$(40)$(557)$(46)$(322)
Taxes paid$1,613 $848 $1,557 $16 
Supplemental disclosure of non-cash financing activities:
Additions to operating lease right-of-use assets and liabilities$780 $4,453 $610 $2,055 
Share-based compensation included in capitalized internal-use software$33 $33 $33 $33 
Deferred proceeds from exercise of share options included in other current assets$42 $27 $26 $27 
Deferred costs of property and equipment incurred during the period included in accounts payable$41 $6 $(80)$6 
Deferred payments in relation to business combinations held in escrow$1,269 $— $— $— 
Schedule A: Business combinations
Working capital (deficit), net (excluding cash and cash equivalents)— (217)
Property, plant and equipment— 18 
Goodwill and other intangible assets— 4,684 
Deferred taxes, net— (152)
$— $4,333 
Less non-cash:
Deferred cash payments$— $(500)
Total$— $3,833 

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Exhibit 99.1
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

Reconciliation of GAAP gross profit to non-GAAP gross profit

Six Months Ended June 30,Three months Ended June 30,
2023202420232024
(In thousands)(In thousands)
GAAP gross profit$81,780 $94,379 $41,106 $48,093 
Add:
Share-based compensation expenses327 390 172 223 
Retention payments related to business combinations306 25 218 25 
Amortization of intangible assets related to business combinations2,335 2,224 1,167 1,138 
Non-GAAP gross profit$84,748 $97,018 $42,663 $49,479 
Non-GAAP gross margin80 %81 %79 %82 %



Reconciliation of Loss from operations (GAAP) to Non-GAAP operating (loss) income

Six Months Ended June 30,Three months Ended June 30,
2023202420232024
(In thousands)(In thousands)
Loss from operations$(22,837)$(3,637)$(9,757)$(953)
Add:
Share-based compensation expenses9,098 8,585 4,689 4,458 
Retention payments related to business combinations687 819 405 591 
Amortization of intangible assets related to business combinations2,403 2,347 1,201 1,227 
Non-recurring expenses related to termination of lease agreement and others13 — — — 
Non-GAAP operating (loss) income$(10,636)$8,114 $(3,462)$5,323 
Non-GAAP operating margin(10)%7 %(6)%9 %
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Exhibit 99.1
Reconciliation of GAAP operating expenses to non-GAAP operating expenses
Six Months Ended June 30,Three months Ended June 30,
2023202420232024
(In thousands)(In thousands)
GAAP research and development$28,253 $25,778 $13,902 $12,239 
Less:
Share-based compensation expenses2,850 2,802 1,460 1,357 
Retention payments related to business combinations— 16 — 16 
Non-GAAP research and development$25,403 $22,960 $12,442 $10,866 
Non-GAAP research and development margin24 %19 %23 %18 %
GAAP sales and marketing$55,088 $51,097 $26,422 $25,857 
Less:
Share-based compensation expenses2,730 1,991 1,356 806 
Retention payments related to business combinations381 778 187 550 
Amortization of intangible assets related to business combinations68 123 34 89 
Non-recurring expenses related to termination of lease agreement and others13 — — — 
Non-GAAP sales and marketing$51,896 $48,205 $24,845 $24,412 
Non-GAAP sales and marketing margin49 %40 %46 %40 %
GAAP general and administrative$21,276 $21,141 $10,539 $10,950 
Less:
Share-based compensation expenses3,191 3,402 1,701 2,072 
Non-GAAP general and administrative$18,085 $17,739 $8,838 $8,878 
Non-GAAP general and administrative margin17 %15 %16 %15 %

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Exhibit 99.1
Reconciliation of Net cash (used in) provided by operating activities (GAAP) to Free cash flow and Normalized free cash flow
Six Months Ended June 30,Three months Ended June 30,
2023202420232024
(In thousands)(In thousands)
Net cash (used in) provided by operating activities$(1,979)$17,412 $(2,305)$7,344 
Purchases of property and equipment, net(1,315)(908)(183)(540)
Capitalized internal use software costs(707)(469)(274)(469)
Free cash flow$(4,001)$16,035 $(2,762)$6,335 
Purchases of property and equipment related to the new headquarters1,100 — 52 — 
Payments received from escrow in relation to contingent consideration(380)— — — 
Normalized free cash flow$(3,281)$16,035 $(2,710)$6,335 





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