Financial Performance - Total revenue for Q3 2024 was $64.7 million, an 18% increase from $54.8 million in Q3 2023[4] - Non-GAAP operating profit was $4.4 million, representing 7% of revenue, compared to $1.1 million or 2% of revenue in Q3 2023[4] - Free cash flow reached $8.7 million, a significant improvement from $(4.9) million in Q3 2023[6] - Revenue for the nine months ended September 30, 2023, was $161,264 thousand, an increase from $184,326 thousand in 2024, representing a growth of 14.5%[24] - Gross profit for the nine months ended September 30, 2023, was $126,033 thousand, compared to $144,843 thousand in 2024, indicating a gross margin of 78.2%[24] - Net loss for the nine months ended September 30, 2023, was $(25,965) thousand, improving to $(6,037) thousand in 2024, a reduction of 76.8%[24] - The company reported a non-GAAP gross profit of $130,325 thousand for the nine months ended September 30, 2023, increasing to $148,841 thousand in 2024, with a non-GAAP gross margin of 81%[32] - The company expects to achieve a non-GAAP operating income of $12,480,000 for the three months ended September 30, 2024, compared to a loss in the same period of 2023[33] Customer Growth - Customer base grew by 21% year-over-year to over 5,300 annual customers[2] - Dollar-based net retention rate (NRR) for customers with ARR of $100,000 or more was 111%, up from 108% in Q3 2023[6] - Customers with ARR of $100,000 or more contributed 60% of total ARR, up from 55% a year ago[6] Guidance and Projections - Q4 2024 revenue guidance is estimated between $64.7 million and $65.7 million, indicating approximately 15% growth year-over-year at the mid-point[10] - Full year 2024 revenue guidance is estimated between $249.0 million and $250.0 million[10] - The company anticipates continued growth in user data and market expansion, as indicated by the positive projections for free cash flow and operating income in 2024[37] Cash Flow and Liquidity - Cash and cash equivalents totaled $60.1 million as of September 30, 2024, down from $71.7 million at the end of 2023[6] - Cash flows from operating activities showed a net cash provided of $26,756 thousand for the three months ended September 30, 2024, compared to $(6,771) thousand in 2023[29] - Cash and cash equivalents at the end of the period were $67,412 thousand for the nine months ended September 30, 2023, decreasing to $60,131 thousand in 2024[29] Operating Expenses - Operating expenses for the nine months ended September 30, 2023, totaled $153,755 thousand, slightly decreasing to $150,947 thousand in 2024, reflecting a reduction of 1.2%[24] - Research and development expenses for the nine months ended September 30, 2023, were $42,452 thousand, slightly decreasing to $40,238 thousand in 2024, a decline of 5.2%[24] - The company incurred share-based compensation costs totaling $13,685 thousand for the nine months ended September 30, 2023, compared to $13,092 thousand in 2024[26] - The amortization of intangible assets related to business combinations was $3,605,000 for the nine months ended September 30, 2023, contributing to the overall operating expenses[33] Other Financial Metrics - The company achieved a free cash flow of $(8,936,000) for the nine months ended September 30, 2023, but projected a positive free cash flow of $24,765,000 for the same period in 2024[37] - Non-GAAP sales and marketing expenses for the nine months ended September 30, 2023, were $74,648,000, with a non-GAAP sales and marketing margin of 46%[34] - The GAAP general and administrative expenses for the nine months ended September 30, 2023, were $31,941,000, with a non-GAAP general and administrative margin of 17%[34] - For the nine months ended September 30, 2023, the company reported a GAAP loss from operations of $27,722,000, while the non-GAAP operating loss was $9,564,000, reflecting a non-GAAP operating margin of -6%[33]

Shares of Similarweb Ltd SMWB have climbed almost 77% year to date.The company's revenue growth is accelerating, "driven by returning demand and abating down sell activity," according to Needham.Analyst Scott Berg initiated coverage with a Buy rating and price target of $11.The Similarweb Thesis: Apart from revenue growth, the company's operating model is driving "rapidly improving profitability," Berg said in the initiation note.Check out other analyst stock ratings."We believe Similarweb is an early leade ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Our ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Similarweb (SMWB) has shown a solid price increase of 14.5% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - Over the last four weeks, SMWB's price has increased by 36.9%, suggesting that the upward trend is still intact [5]. - SMWB is currently trading at 83.4% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - SMWB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like SMWB that are on an uptrend supported by strong fundamentals [3]. - The article suggests exploring over 45 Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8].

Shares of Similarweb (SMWB) have gained 13.6% over the past four weeks to close the last trading session at $8.04, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $11 indicates a potential upside of 36.8%. The mean estimate comprises six short-term price targets with a standard deviation of $1.67. While the lowest estimate of $10 indicates a 24.4% increase from the current price ...

F AlexSecret The stock for Similarweb Ltd. (NYSE:SMWB) is down from when I last wrote about the company, yet the company's business is looking even better now than it did at that time. Similarweb followed through on its plans to continue delivering free cash flow. The company guided to staying profitable on a non-GAAP basis and delivering positive free cash flow for the rest of the fiscal year. Similarweb achieved its 4th straight quarter of non-GAAP operating profit and even produced a company record non-G ...

Financial Data and Key Metrics Changes - Revenue growth accelerated to 13% year-over-year in Q2 2024, driven by new customer growth and improving retention [9] - Achieved a net revenue retention rate of 99% overall and 109% for customers with over $100,000 ARR, indicating a positive trajectory [9] - Generated $6 million in free cash flow in Q2 2024 and $16 million in the first half of 2024 [10] - Remaining performance obligations (RPO) totaled $217 million at the end of Q2 2024, up 24% year-over-year [10] - Raised guidance for full-year 2024 revenue to a range of $246 million to $248 million, an increase from previous expectations [10][11] Business Line Data and Key Metrics Changes - The company successfully upsold and signed its first eight-figure ARR customer, increasing the customer count to over 5,000 [4] - The new version of digital data estimation significantly enhanced accuracy and coverage, adding insights for over 30 million new websites [5][36] Market Data and Key Metrics Changes - The company is benefiting from the AI revolution, with large tech companies engaging to access digital data for their LLM models [6] - There is increasing demand from global consumer brands to understand how AI and chatbots are changing customer online behavior [7] Company Strategy and Development Direction - The company is focused on improving go-to-market strategies and R&D innovations to accelerate growth [4] - The acquisition of 42matters aims to expand app data capabilities and provide a holistic view of digital assets for customers [7][25] - The company is committed to delivering profitable growth and achieving long-term profit and free cash flow targets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued business growth and increasing revenue outlook for 2024 [4] - The company believes it can benefit from market dynamics, as companies tend to invest in market data during challenging economic conditions [29] - Management noted that the demand for digital data is increasing, particularly from large tech companies building LLMs [13] Other Important Information - The company achieved a record non-GAAP operating margin of 9% in Q2 2024 [9] - The strategy includes hiring more customer success personnel to support revenue growth [19] Q&A Session Summary Question: Interest from large tech companies for data to train LLMs - Management noted an increase in demand for digital data from large tech companies and is working on pricing and packaging solutions [12][13] Question: Growth drivers for $100,000+ customers - Management highlighted success in serving strategic accounts and the increasing appetite for digital data among large companies [14][15] Question: Impact of Similarweb 3.0 on ARR per customer - Management confirmed that the strategy to simplify onboarding has led to increased customer growth and retention [17] Question: Plans for increased headcount - The majority of new hires will be sales-focused to support revenue growth [19] Question: Trends in net revenue retention for smaller clients - Management observed a positive trend in retention rates, attributing it to efforts made over the past year [20][21] Question: Contribution of 42matters acquisition - Management expressed optimism about the acquisition's potential for cross-selling and upselling opportunities [25] Question: Overall macroeconomic impact on business - Management indicated that the company is executing well despite macro concerns, benefiting from increased demand for market data [28][29] Question: Demand across product portfolio - Management noted strong demand for Data-as-a-Service (DaaS) and stock intelligence products [31]

| --- | --- | --- | |---------------------------------|-------|-----------------------------------| | | | | | | | | | | | | | INVESTOR PRESENTATION Q2 2024 | | INVESTOR PRESENTATION Q2 202 4 1 | 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 statements relating to t ...