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 ...

Eliyahu brings nearly two decades of growth strategy and executive experience at tech giants, including SimilarWeb [NYSE: SMWB] and LivePerson [NASDAQ: LPSN]. As the recent president of Gravyty, she played a pivotal role in integrating AI and innovative technology to enhance community engagement and fundraising efforts for educational institutions and nonprofits. Eliyahu currently serves as a Growth Partner at AnD Ventures, a firm specializing in taking seed-stage start-ups to market. She also promotes the ...

Similarweb is benefiting from an expanding customer base and acquisitions like Admetricks, enhancing its digital ad intelligence offerings and overall market position. For Similarweb, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SMWB going forward to see if this recent jump can turn into more strength down the road. For ...

NOTES REGARDING THIS PRESENTATION | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------|---------------------|--------|-------|------------------------------------------------|-----------------------|------------------------------------------------------------------------------|-------|--------------|-------------------------------------------------|----------------|-------| | | | | | | Introducing | by helping them: | Similarw ...

Start Time: 08:30 January 1, 0000 9:02 AM ET Similarweb Ltd. (NYSE:SMWB) Q1 2024 Earnings Conference Call May 08, 2024, 08:30 AM ET Company Participants Or Offer - Co-Founder and CEO Jason Schwartz - CFO Rami Myerson - VP, IR Conference Call Participants Arjun Bhatia - William Blair Pete Newton - Barclays Tommy Shinke - Cantor Fitzgerald Tyler Radke - Citi Aaron Kimson - Citizens Operator Good day, ladies and gentlemen, and welcome to Similarweb Quarter 1 Fiscal 2024 Earnings Call. All lines have been place ...

Sustained momentum in both top line and bottom line performance Delivering consecutive quarters of positive free cash flow and non-GAAP operating profit TEL AVIV, ISRAEL -- May 7, 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 first quarter ended March 31, 2024. The Company published a letter to shareholders from management discussing these results, which can be ...

PART I [Key Information](index=14&type=section&id=Item%203.%20Key%20Information) This section outlines critical information for investors, focusing on significant risks that could impact the company's business, financial condition, and operations [Risk Factors](index=16&type=section&id=D.%20Risk%20Factors) The company identifies numerous material risks, including a history of net losses, intense competition, technological vulnerabilities, evolving regulatory compliance, and geopolitical instability in Israel - The company has a history of net losses, reporting losses of **$69.0 million** in 2021, **$83.7 million** in 2022, and **$29.4 million** in 2023, and may not achieve or maintain profitability in the future[62](index=62&type=chunk) - The business is susceptible to geopolitical risks due to its significant operations in Israel, including the recent conflict with Hamas, which could adversely affect operations and lead to decreased revenues[266](index=266&type=chunk)[267](index=267&type=chunk) - Changes in data privacy laws (e.g., GDPR, CPRA) and public perception could impact the company's ability to gather and process data, which is fundamental to its solutions, potentially increasing compliance costs and legal exposure[175](index=175&type=chunk)[176](index=176&type=chunk) - Competition is intense and comes from market research firms, traditional media measurement solutions, management consultants, and new market entrants, including large technology companies that could develop competing products[71](index=71&type=chunk)[72](index=72&type=chunk) [Information on the Company](index=65&type=section&id=Item%204.%20Information%20on%20the%20Company) This section provides a comprehensive overview of Similarweb's business, detailing its core function as a digital data and analytics company, its product offerings, market opportunity, and growth strategies [Business Overview](index=65&type=section&id=B.%20Business%20Overview) Similarweb is a leader in digital data and analytics, transforming billions of raw data points into proprietary "Similarweb Digital Data" delivered through SaaS, DaaS, and Advisory Services to help businesses with strategy, customer acquisition, and monetization - Similarweb's core product is "Similarweb Digital Data," created by collecting and processing billions of digital signals daily from four main sources: first-party direct measurement, a contributory network, public data capture, and partnerships[303](index=303&type=chunk)[319](index=319&type=chunk) - The company estimates its total addressable market (TAM) to be approximately **$52 billion**, driven by trends like the growing recognition of data-informed decision-making and advances in analytical capabilities[310](index=310&type=chunk)[312](index=312&type=chunk) Customer Metrics (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | Total Paying Customers | 4,712 | | Customers with ARR ≥ $100,000 | 365 | | Percentage of ARR from customers ≥ $100,000 | 57% | - Growth strategies include acquiring new customers, expanding spend from existing customers, continuous innovation in technology, democratizing data access, collecting more data points, and pursuing M&A opportunities[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) [Operating and Financial Review and Prospects](index=80&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section provides management's discussion and analysis of the company's financial performance, highlighting revenue growth, narrowed net loss, operational efficiency, and liquidity position [Operating Results](index=86&type=section&id=A.%20Operating%20Results) In 2023, Similarweb's revenue increased by 12.8% to $218.0 million, gross profit rose to $170.9 million with a 78.4% margin, and net loss significantly decreased to $29.4 million due to revenue growth and reduced operating expenses Key Financial Results (2022 vs. 2023) | Metric | 2022 (in thousands) | 2023 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $193,234 | $218,019 | +12.8% | | Gross Profit | $139,960 | $170,929 | +22.1% | | Gross Margin | 72.4% | 78.4% | +6.0pp | | Loss from Operations | ($87,856) | ($28,807) | +67.2% | | Net Loss | ($83,661) | ($29,373) | +64.9% | - The number of paying customers grew by **16.4%** to **4,712** as of December 31, 2023, from **4,049** a year earlier[394](index=394&type=chunk)[419](index=419&type=chunk) - Sales and marketing expenses decreased by **17.5%** to **$101.2 million** in 2023, primarily due to a **$14.3 million** reduction in compensation related to decreased headcount and a **$2.2 million** cut in marketing expenditures[424](index=424&type=chunk) Non-GAAP Operating Loss Reconciliation | Metric | 2022 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Loss from operations (GAAP) | ($87,856) | ($28,807) | | Share-based compensation | $16,987 | $18,127 | | Other adjustments | $7,078 | $5,865 | | **Non-GAAP operating loss** | **($63,791)** | **($4,815)** | [Liquidity and Capital Resources](index=94&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's primary sources of liquidity are cash from customer payments and borrowings from its credit facility, with cash and cash equivalents at $71.7 million and a significant improvement in net cash used in operating activities in 2023 Cash and Liquidity Summary (as of Dec 31, 2023) | Metric | Value (in thousands) | | :--- | :--- | | Cash and cash equivalents | $71,732 | | Restricted deposits | $10,020 | | Borrowings under Credit Facility | $25,000 | - Net cash used in operating activities decreased to **$3.0 million** for 2023, compared to **$46.1 million** for 2022, primarily due to a smaller net loss[448](index=448&type=chunk) - As of December 31, 2023, the company had total contractual purchase and operating lease obligations of **$99.3 million**[451](index=451&type=chunk) [Critical Accounting Estimates](index=98&type=section&id=E.%20Critical%20Accounting%20Estimates) Management identifies several critical accounting policies requiring significant judgment and estimation, including revenue recognition, capitalization of deferred contract costs, share-based compensation, internal-use software, and valuation of goodwill and intangible assets - Revenue from SaaS subscriptions is recognized ratably over the contractual term, which is typically **12 months**[461](index=461&type=chunk)[462](index=462&type=chunk) - Sales commissions are capitalized as deferred contract costs and amortized on a straight-line basis over an estimated benefit period of **three years**[465](index=465&type=chunk) - Goodwill and intangible assets from acquisitions require significant estimates regarding future cash flows, useful lives, and discount rates for valuation[472](index=472&type=chunk)[475](index=475&type=chunk) [Directors, Senior Management and Employees](index=102&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, compensation practices, board structure, and employee base, including aggregate compensation for directors and executives, and employee distribution - The aggregate compensation paid to directors and executive officers for the year ended December 31, 2023, was approximately **$13.1 million**[498](index=498&type=chunk) - As of December 31, 2023, the company had **899** employees, with **568** in Israel, **170** in the United States, **101** in Europe, and **60** in the Asia Pacific region[606](index=606&type=chunk) - The company has a classified board of directors divided into **three classes** with staggered **three-year terms**[552](index=552&type=chunk)[553](index=553&type=chunk) - As a foreign private issuer, the company follows certain Israeli corporate governance practices instead of NYSE rules, particularly regarding shareholder meeting quorums and the composition of the nominating/corporate governance committee[548](index=548&type=chunk)[549](index=549&type=chunk) [Major Shareholders and Related Party Transactions](index=123&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section discloses the company's ownership structure, indicating a high concentration of ownership among executive officers, directors, and major shareholders, and confirms the presence of related party transactions - As of February 14, 2024, all directors and executive officers as a group beneficially owned approximately **59.8%** of the company's ordinary shares[247](index=247&type=chunk)[615](index=615&type=chunk) Major Shareholders (Beneficial Ownership as of Feb 14, 2024) | Shareholder | Percentage | | :--- | :--- | | Anglo-Peacock Nominees Limited | 16.4% | | Viola Group | 14.3% | | MIH E-Commerce Holdings B.V. | 14.2% | | ICP S1, L.P. | 7.3% | | Or Offer (CEO) | 8.3% | [Additional Information](index=126&type=section&id=Item%2010.%20Additional%20Information) This section covers supplementary corporate information, including material contracts, exchange controls, and a detailed discussion of tax considerations for Israeli and U.S. shareholders - The company does not believe it was classified as a Passive Foreign Investment Company (PFIC) for the **2023** taxable year, but notes this is a factual determination made annually and cannot be guaranteed for future years[230](index=230&type=chunk)[680](index=680&type=chunk) - The standard corporate tax rate in Israel is **23%**, but the company may be eligible for reduced rates under programs for "Preferred Technological Enterprises," though it has not yet examined its eligibility due to its current loss-making status[236](index=236&type=chunk)[651](index=651&type=chunk) - For non-Israeli resident shareholders, capital gains from selling shares are generally exempt from Israeli tax, provided the shares were purchased after the company was listed on a foreign exchange and the gains are not attributed to a permanent establishment in Israel [Quantitative and Qualitative Disclosures about Market Risk](index=138&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rates, and inflation, with primary currency risk arising from NIS-denominated operating costs versus USD, GBP, and EUR revenues - A hypothetical **10%** change in foreign currency exchange rates would have impacted the company's net loss by **$10.0 million** for the year ended December 31, 2023[706](index=706&type=chunk) - The company's primary foreign currency exposure is due to operating costs in Israel being denominated in NIS, while revenues are primarily in USD, GBP, and EUR[706](index=706&type=chunk) PART II [Controls and Procedures](index=141&type=section&id=Item%2015.%20Controls%20and%20Procedures) This section addresses the company's internal controls, with management concluding that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were effective[719](index=719&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[722](index=722&type=chunk) [Corporate Governance and Other Matters](index=142&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This part covers various governance and compliance topics, including the audit committee financial expert, Code of Business Conduct and Ethics, principal accountant fees, and the cybersecurity risk management program Principal Accountant Fees (2022 vs. 2023) | Fee Category | 2022 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Audit Fees | $508 | $508 | | Audit Related Fees | $0 | $299 | | Tax Fees | $106 | $154 | | All Other Fees | $28 | $0 | | **Total** | **$642** | **$961** | - The company has implemented a cybersecurity risk management program based on the NIST Cybersecurity Framework, with oversight delegated to the Audit Committee[747](index=747&type=chunk)[748](index=748&type=chunk)[752](index=752&type=chunk) - The company has adopted a Code of Business Conduct and Ethics applicable to all employees, officers, and directors[728](index=728&type=chunk) PART III [Financial Statements](index=148&type=section&id=Item%2018.%20Financial%20Statements) This section contains the company's audited consolidated financial statements for fiscal years 2021-2023, prepared in accordance with U.S. GAAP, along with the independent auditor's report Consolidated Balance Sheet Highlights (as of Dec 31, 2023) | Account | Value (in thousands) | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $71,732 | | Total Current Assets | $146,385 | | Total Assets | $239,013 | | **Liabilities & Equity** | | | Deferred Revenue (Current) | $99,968 | | Total Current Liabilities | $184,185 | | Total Liabilities | $223,466 | | Total Shareholders' Equity | $15,547 | Consolidated Statement of Comprehensive Loss Highlights (for year ended Dec 31, 2023) | Account | Value (in thousands) | | :--- | :--- | | Revenue | $218,019 | | Gross Profit | $170,929 | | Total Operating Expenses | $199,736 | | Loss from Operations | ($28,807) | | Net Loss | ($29,373) | | Net Loss Per Share (basic & diluted) | ($0.38) | Consolidated Statement of Cash Flows Highlights (for year ended Dec 31, 2023) | Account | Value (in thousands) | | :--- | :--- | | Net cash used in operating activities | ($3,038) | | Net cash used in investing activities | ($2,586) | | Net cash provided by financing activities | $1,192 | | Net decrease in cash and cash equivalents | ($6,078) |

Financial Data and Key Metrics Changes - Revenue for Q4 2023 was $56.8 million, representing an 11% increase year-over-year [48] - Non-GAAP gross margin reached 81% in Q4, with a record non-GAAP operating margin of 8%, improving by 29 percentage points compared to the previous year [4] - The company generated $3.5 million in positive free cash flow in Q4, achieving a 6% free cash flow margin [5] - 42% of annual recurring revenue (ARR) is contracted under multiyear commitments, with remaining performance obligations reaching a record $195 million [3] Business Line Data and Key Metrics Changes - The company closed 10 seven-digit contracts in Q4, indicating strong performance in strategic accounts [2] - The global customer base grew by 16% year-over-year to over 4,700 customers, with an average annual spend of around $50,000 per customer [48] - Net revenue retention (NRR) for customers with $100,000 ARR was 107%, down from 120% in Q4 of the previous year [57] Market Data and Key Metrics Changes - The company experienced a strong influx of new customers, adding 341 accounts quarter-over-quarter, the highest since going public [16] - The top of the sales funnel remained robust, with approximately 13 million visitors to the company's tools in Q4, expecting 120 million visits in 2023 [48] Company Strategy and Development Direction - The company aims to build on its performance by focusing on execution in four areas: expanding strategic accounts, increasing net retention, enhancing product offerings, and maintaining operational efficiency [1][6] - There is a strong emphasis on leveraging generative AI to provide competitive advantages for large businesses, indicating a strategic pivot towards data-driven insights [6][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating the current macro environment and the potential for growth driven by generative AI adoption [6] - The company anticipates achieving profitable growth and positive free cash flow in all four quarters of 2024, with a revenue forecast of $242 million to $246 million for the year [58][70] Other Important Information - The company achieved its first positive free cash flow quarter since its IPO, reflecting disciplined execution and operational improvements [50] - The launch of Similarweb 3.0 has positively impacted customer acquisition and retention, with a focus on entry-level pricing and low acquisition costs [49][55] Q&A Session Summary Question: Can you provide insights on linearity in Q4 and into Q1? - Management noted that larger deals closed in Q4 contributed to linearity, with positive momentum expected to continue [59] Question: What drove the addition of 341 accounts this quarter? - The increase was attributed to the success of Similarweb 3.0 and improved pricing and packaging strategies [16][68] Question: How do you see the demand patterns across different customer segments? - Management indicated that enterprise demand has strengthened, while SMBs are stabilizing, reflecting overall positive trends [18][26] Question: What is the outlook for net revenue retention and churn levels? - Management observed a decline in churn levels and expects further stabilization in NRR as customer engagement improves [62][65] Question: How will multiyear contracts impact future growth? - Multiyear contracts are seen as a positive indicator of customer loyalty and long-term engagement, with expectations for continued growth [88]

Financial Performance & Metrics - Q4 2023 revenue reached $56.8 million, representing an 11% year-over-year growth[20] - Q4 2023 Revenue Annualized is $227 million (Q4 2023 Revenue * 4)[20] - The company's Remaining Performance Obligations (RPO) is $195 million, with 80% expected to be recognized over the next 12 months[20] - Gross margin for Q4 2023 was 81%[20] - 57% of total ARR (Annual Recurring Revenue) comes from customers with $100K+ ARR[20] - Dollar-based net retention rate for $100K+ ARR customers in Q4 2023 was 107%[20] - Non-GAAP operating margin was 8% in Q4 2023[71] - Non-GAAP Normalized Free Cash Flow margin was 6% in Q4 2023[71] Customer Base - The company has over 4,700 customers[52] Market Opportunity - The company's Total Addressable Market (TAM) is $52 billion[9] - The company serves Small and Medium Enterprises (SME) with 1-500 employees, totaling 400 million globally[9] - The company also targets Large Enterprises with 500+ employees, totaling 440,000 globally[9]

Exhibit 99.1 SIMILARWEB ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS Delivers positive free cash for the first time since IPO Non-GAAP operating profit margin of 8% TEL AVIV, ISRAEL -- February 13, 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 fourth quarter ended December 31, 2023. The Company published a letter to shareholders from management discuss ...