Financial Performance and Key Metrics - Revenue for Q3 2023 was $54.8 million, exceeding the high end of guidance, representing a 10% year-over-year growth [6][27] - Non-GAAP gross margin reached a record 83%, with a non-GAAP operating profit of $1.1 million, marking the first profitable quarter on a non-GAAP basis [7][9] - Net Revenue Retention (NRR) for the $100,000 ARR customer segment was 108%, down from 123% in Q3 last year, now representing 55% of total ARR [6][7] Business Line Performance - Customer acquisition and logo retention remained steady despite longer sales cycles, with 43% of ARR generated from customers with multiyear contracts [6][7] - The average customer spends nearly $51,000 annually, with a 12% growth in the global customer base to nearly 4,400 customers [27] Market Performance - Improvements in demand were noted primarily in Europe and APAC, while the US market showed similar trends as before [5][6] - The company is optimistic about future demand, indicating a potential turnaround in customer spending and budget constraints [5][6] Company Strategy and Industry Competition - The launch of Similarweb 3.0 has improved pricing alignment and increased average order value, enhancing the go-to-market strategy [14][30] - The company is focusing on integrating AI capabilities into its platform, which is expected to drive user engagement and retention [47][48] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges due to macroeconomic conditions but expressed optimism about stabilizing demand and improving sales cycles [5][60] - The company aims to balance growth with profitability, targeting sustained positive free cash flow and long-term operating margins of 25% [9][54] Other Important Information - The company has faced challenges due to the geopolitical situation in Israel but has maintained operations and support for its global customer base [10][15] - The management emphasized the importance of disciplined execution and operational efficiency in navigating the current environment [9][54] Q&A Session Summary Question: Changes in macro environment and customer segments - Management noted improvements in billings and customer dialogue, indicating a potential shift in trends [34][35] Question: Impact of new pricing and sales cycles - The new pricing structure has improved sales cycles slightly, but longer cycles remain a challenge, particularly for SMBs [38] Question: Details on Similarweb 3.0 impact - Similarweb 3.0 has enhanced user engagement and retention, with features leading to better land-and-expand opportunities [44] Question: Future profitability and cash flow - Long-term targets include 85% gross margins and 25% non-GAAP operating margins, with a focus on maintaining profitability while investing in growth [53][54] Question: Gross retention rates and bookings - Management is optimistic about stabilizing gross retention rates and anticipates improvements as the macro environment stabilizes [59][61]

NOTES REGARDING THIS PRESENTATION | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------|---------------------|--------|-------------|------------------------------------|-----------------------|-------------------------------------------------------------------------------------------------|-------|--------------|------------------------|-------------------------------|-------| | | | | | Introducing | | | Similarweb \nPowering ...

Exhibit 99.1 SIMILARWEB ANNOUNCES THIRD QUARTER 2023 RESULTS Achieved company record gross profit and gross margin Achieved Non-GAAP operating profit for the first time TEL AVIV, ISRAEL -- November 7, 2023 -- 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 third quarter ended September 30, 2023. The Company published a letter to shareholders from management discussing th ...

Financial Data and Key Metrics Changes - In Q2 2023, the company reported revenue of $53.7 million, representing a 13% increase year-over-year [6] - The global customer base grew by 12% year-over-year, reaching over 4,300 customers, with an average customer spend of nearly $51,000 annually, consistent with Q2 last year [6] - The non-GAAP gross margin was nearly 80%, and the non-GAAP operating margin improved by 35 percentage points compared to the previous year [6][40] - The GAAP operating loss for Q2 was $9.8 million, while the non-GAAP operating loss was $3.5 million, better than the lower end of the guidance range [40] Business Line Data and Key Metrics Changes - The dollar-based net retention rate (NRR) was 101%, down from 115% in Q2 2022, indicating challenges in expansion within the existing customer base [16] - For customers with annual recurring revenue (ARR) of $100,000, the NRR was 109%, down from 127% in the same quarter last year [39] Market Data and Key Metrics Changes - The company noted that enterprise customers are optimizing budgets, leading to longer sales cycles and some customers reducing spending to fit corporate budgets [12][62] - There is a noticeable change in behavior among small accounts and very large corporates, with increased pressure on budget optimization [26] Company Strategy and Development Direction - The company is focused on achieving sustained positive free cash flow by Q4 2023 and is investing efficiently in marketing, R&D, and product divisions [35][41] - The launch of SimilarAsk, an AI-driven feature, aims to enhance customer experience and drive growth potential [13][14] - The company is optimistic about the integration of AI capabilities to unlock growth and improve product development cycles [37][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained positive free cash flow and emphasized the importance of balancing growth with profitability [41] - The pipeline remains strong, with new customer additions and market penetration expected to continue [35] - Management acknowledged the challenges posed by macroeconomic conditions but remains committed to efficient growth [60] Other Important Information - The company expects total revenue for Q3 2023 to be in the range of $54.1 million to $54.5 million, and for the full year, revenue is expected to be between $216 million and $218 million, reflecting approximately 12% growth year-over-year [18] - The company is seeing strong performance in Europe, while China is experiencing some slowdown [30] Q&A Session Summary Question: How are customers reducing spend? - Management noted that budget reductions are often due to layoffs and corporate budget adjustments, leading to decreased spending on fee-based products [43][44] Question: What changes have been made to shorten sales cycles? - Management acknowledged that sales cycles remain longer due to macroeconomic pressures but emphasized strong visibility into deals [62] Question: How is the AI feature SimilarAsk progressing? - SimilarAsk is already live and being used by early adopters, with plans for broader rollout to paying customers [64][75] Question: Are there differences in behavior between large enterprise customers and smaller ones? - Management indicated that larger enterprises are under more pressure to optimize budgets, while smaller accounts are also feeling the strain [64] Question: What is the outlook for normalized top-line growth? - Management plans to provide guidance for next year in Q4, emphasizing the unique value of their digital data in driving growth [60]

[Financial and Business Highlights](index=1&type=section&id=Financial_and_Business_Highlights) Similarweb reported a 13% revenue increase to $53.7 million in Q2 2023, with significant operating margin improvement and customer base expansion Q2 2023 Financial Highlights (vs. Q2 2022) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $53.7M | $47.6M | +13% | | GAAP Operating Loss | $(9.8)M | $(26.5)M | Improved | | GAAP Operating Margin | (18)% | (55.6)% | +37.6 p.p. | | Non-GAAP Operating Loss | $(3.5)M | $(19.8)M | Improved | | Non-GAAP Operating Margin | (6)% | (42)% | +36 p.p. | | GAAP Net Loss per Share | $(0.12) | $(0.29) | Improved | | Non-GAAP Net Loss per Share | $(0.04) | $(0.26) | Improved | - The company launched 'SimilarAsk' in beta, its new generative AI assistant designed to answer questions using Similarweb's digital data[2](index=2&type=chunk) Key Business Metrics as of June 30, 2023 (YoY) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Customers | 4,301 | +12% | | Customers with ARR > $100k | 356 | +15% | | Overall Dollar-Based NRR | 101% | Down from 115% | | NRR for Customers > $100k ARR | 109% | Down from 127% | | Remaining Performance Obligations | $174.8M | +9% | - Free cash flow showed significant improvement, with a usage of **$(2.8) million** in Q2 2023 compared to **$(28.9) million** in Q2 2022[5](index=5&type=chunk) [Financial Outlook](index=3&type=section&id=Financial_Outlook) The company projects continued revenue growth for Q3 and FY2023, aiming for sustained positive free cash flow by Q4 2023 Q3 & Full Year 2023 Guidance | Period | Metric | Guidance Range | YoY Growth (Mid-point) | | :--- | :--- | :--- | :--- | | **Q3 2023** | Total Revenue | $54.1M - $54.5M | ~9% | | | Non-GAAP Operating Loss | $(2.8)M - $(3.2)M | N/A | | **FY 2023** | Total Revenue | $216.0M - $218.0M | ~12% | | | Non-GAAP Operating Loss | $(16.0)M - $(17.0)M | N/A | - The company expects to reach sustained positive free cash flow in the fourth quarter of 2023[8](index=8&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated_Financial_Statements) This section presents the unaudited consolidated financial statements for Q2 2023, including Balance Sheets, Income, and Cash Flow Statements [Consolidated Balance Sheets](index=8&type=section&id=Consolidated_Balance_Sheets) As of June 30, 2023, total assets were $226.0 million, with cash at $73.0 million, and total shareholders' equity at $12.3 million Balance Sheet Summary (in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $72,980 | $77,810 | | Total Assets | $226,009 | $246,045 | | Deferred revenue (Current) | $96,778 | $93,195 | | Total Liabilities | $213,754 | $224,094 | | Total Shareholders' equity | $12,255 | $21,951 | [Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Consolidated_Statements_of_Comprehensive_Income_%28Loss%29) For Q2 2023, revenue grew to $53.7 million, with a significant reduction in operating loss to $(9.8) million and net loss to $(9.3) million Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $53,681 | $47,586 | | Gross Profit | $41,106 | $33,582 | | Loss from Operations | $(9,757) | $(26,466) | | Net Loss | $(9,293) | $(22,061) | | Net Loss Per Share | $(0.12) | $(0.29) | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated_Statements_of_Cash_Flows) Net cash used in operating activities significantly improved to $(2.3) million in Q2 2023, with cash and equivalents at $73.0 million Cash Flow Summary - Three Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,305) | $(13,050) | | Net cash used in investing activities | $(500) | $(19,524) | | Net cash provided by financing activities | $1,098 | $2,386 | | Net decrease in cash | $(2,369) | $(31,094) | | Cash and cash equivalents, end of period | $72,980 | $93,925 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation_of_GAAP_to_Non-GAAP_Financial_Measures) This section details adjustments from GAAP to non-GAAP metrics, reconciling operating loss and cash flow by excluding non-recurring items Reconciliation of GAAP to Non-GAAP Operating Loss - Q2 2023 (in thousands) | Line Item | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Loss from operations (GAAP)** | **$(9,757)** | **$(26,466)** | | Share-based compensation | $4,689 | $4,763 | | Retention payments (business combinations) | $405 | $542 | | Amortization of intangibles | $1,201 | $1,129 | | Other adjustments | $0 | $371 | | **Non-GAAP operating loss** | **$(3,462)** | **$(19,788)** | Reconciliation to Free Cash Flow - Q2 2023 (in thousands) | Line Item | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **$(2,305)** | **$(13,050)** | | Purchases of property and equipment, net | $(183) | $(14,836) | | Capitalized internal use software costs | $(274) | $(995) | | **Free cash flow** | **$(2,762)** | **$(28,881)** |

Similarweb Ltd. (NYSE:SMWB) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Raymond Jones - Vice President, Investor Relations Or Offer - Chief Executive Officer Jason Schwartz - Chief Financial Officer Conference Call Participants Arjun Bhatia - William Blair Ryan MacWilliams - Barclays Bank Steve Hromin - Oppenheimer John Byun - Jefferies Noah Herman - JPMorgan Brett Knoblauch - Cantor Fitzgerald Patrick Walravens - JMP Securities Tyler Radke - Citi Operator Greetings and wel ...

This presentation contains "forward-looking statements" within the meaning of Section ùþA of the Securities Act of øĀúú, as amended, or the Securities Act, and Section ùøE of the Securities Exchange Act of øĀúû, as amended. Forward-looking statements include statements relating to the expected performance of our business, future financial results, strategy, long-term growth and overall future prospects, our customers continued investment in digital transformation and reliance on digital intelligence and the ...

Exhibit 99.1 SIMILARWEB ANNOUNCES FIRST QUARTER 2023 RESULTS First quarter 2023 revenue grew 19% year-over-year to $52.8 million • Cash and cash equivalents totaled $75.3 million as of March 31, 2023, compared to $77.8 million as of December 31, 2022. • Net cash provided by operating activities was $0.3 million, compared to $0.9 million for the first quarter of 2022. • Free cash flow was $(1.2) million, compared to $(4.3) million for the first quarter of 2022. • Normalized free cash flow was $(0.6) million, ...

Taxation and Regulatory Risks - The company may be classified as a passive foreign investment company (PFIC) if 75% or more of its gross income is passive income, which could lead to adverse U.S. federal income tax consequences for U.S. holders of its ordinary shares [223]. - The company does not believe it was classified as a PFIC for the taxable year ended December 31, 2022, but this determination must be made annually and could change based on income and asset composition [223]. - Changes in tax laws or regulations could increase the costs of the company's solutions and harm its business, potentially requiring the company or its customers to pay additional taxes [226]. - The application of indirect taxes to online businesses is complex and evolving, with potential liabilities for past sales if the company is required to collect taxes where it has not historically done so [231]. - The company is expanding its international operations, which may subject it to adverse tax consequences depending on the application of tax laws in various jurisdictions [233]. - The enactment of legislation implementing changes in taxation of international business activities could impact the company's future financial position and results of operations [234]. - The OECD's BEPS initiative aims to standardize global corporate tax policy, which may lead to significant changes in tax legislation that could adversely affect the company's international expansion plans [236]. Shareholder and Market Dynamics - The public trading price of the company's ordinary shares has been volatile and may continue to fluctuate due to various factors, potentially causing investors to lose part of their investment [237]. - As of February 14, 2023, insiders beneficially owned approximately 60.6% of the company's ordinary shares, limiting other shareholders' influence on corporate matters [239]. - As of December 31, 2022, there were 76,433,772 ordinary shares outstanding, with all shares freely transferable except those held by affiliates [242]. - The company had 3,210,337 shares available for future grants under its 2021 Plan, which increased to 7,032,025 shares as of January 1, 2023 [243]. - The company does not anticipate paying any dividends in the foreseeable future, intending to retain future earnings to finance operations and expand its business [253]. - Future sales of ordinary shares in the public market could depress the market price of the company's shares and impair its ability to raise capital [240]. Operational and Geopolitical Risks - The company’s commercial insurance does not cover losses from events associated with war and terrorism, which could materially affect its business [259]. - The company’s operations may be adversely affected by political, economic, and military conditions in Israel and the surrounding region [258]. - The ongoing state of hostility and economic boycotts may adversely impact the company's ability to sell solutions and affect operating results [260]. - Military reserve duty call-ups could disrupt operations, potentially affecting business prospects and financial condition [261]. - Proposed changes to Israel's judicial system may deter foreign investment and lead to increased currency fluctuations and interest rates, negatively impacting business [262]. - Enforcement of U.S. judgments against the company in Israel may be difficult, complicating legal claims under U.S. securities laws [263]. - Israeli corporate law provisions may delay or prevent acquisitions, affecting shareholder control and investment pricing [266]. Financial Performance and Risks - Market opportunity estimates and growth forecasts may prove inaccurate, impacting the company's growth potential [270]. - The company may face liability claims from contract breaches, with insurance potentially inadequate to cover losses [272]. - Evolving corporate governance and ESG regulations may increase compliance costs and management attention [276]. - Future acquisitions and partnerships could be challenging to integrate, potentially disrupting business and diluting shareholder value [278]. - The company acquired a business in 2022 to enhance its platform and optimize products, indicating a focus on growth opportunities through acquisitions [279]. - The company faces challenges in identifying desirable acquisition targets and may incur expenses related to potential acquisitions, which could adversely affect financial results [280]. - The ongoing military conflict in Ukraine poses risks to the company's operations, particularly affecting approximately 60 employees engaged in software development and quality assurance [282]. Liquidity and Financial Position - The company reported cash and cash equivalents of $87.6 million as of December 31, 2022, down from $140.4 million in 2021, indicating a decrease in liquidity [465]. - The company had $25.0 million of outstanding borrowings under the SVB LSA as of December 31, 2022, with a variable interest rate structure [466]. - A hypothetical 10% change in foreign currency exchange rates would have impacted the company's net loss by $13.6 million for the year ended December 31, 2022 [464]. - The company does not believe inflation has materially affected its historical results, but significant inflationary pressures could adversely impact financial performance [467]. - The company is exposed to market risks from changes in exchange rates, interest rates, and inflation, which arise in the ordinary course of business [463]. - The company maintains a hedging strategy against currency risk through forward currency contracts and cylinder contracts [464].

Similarweb Ltd (NYSE:SMWB) Q4 2022 Earnings Conference Call February 15, 2023 8:30 AM ET Company Participants Raymond Jones - VP, IR Or Offer - Co-Founder, CEO & Director Jason Schwartz - CFO Conference Call Participants Arjun Bhatia - William Blair & Company Ryan MacWilliams - Barclays Bank Jason Helfstein - Oppenheimer Brett Knoblauch - Cantor Fitzgerald Tyler Radke - Citigroup Noah Herman - JPMorgan Chase & Co. John Byun - Jefferies Operator Greetings, and welcome to the Similarweb Fourth Quarter Fiscal ...