Similarweb(SMWB) - 2024 Q2 - Quarterly Report

Q2 2024 Performance Overview This section highlights Similarweb's robust financial and operational achievements in Q2 2024, marked by accelerated revenue growth and improved profitability Financial Highlights Similarweb reported strong Q2 2024 results with 13% revenue growth, achieving its fourth consecutive non-GAAP operating profit and positive free cash flow - Revenue growth accelerated for the third consecutive quarter, reaching 13% YoY in Q2 2024[1][2] Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue ($) | $60.6M | $53.7M | +13% YoY | | GAAP Operating Loss ($) | $(1.0)M | $(9.8)M | Improved by 90% | | GAAP Net Loss per Share ($) | $(0.01) | $(0.12) | Improved | | Non-GAAP Operating Profit/(Loss) ($) | $5.3M | $(3.5)M | Significant Turnaround | | Free Cash Flow ($) | $6.3M | $(2.8)M | Significant Turnaround | Business & Operational Highlights The company achieved strong business momentum with a 17% customer base increase, securing its first 8-figure ARR client, and acquiring 42matters AG - Total customer count grew 17% year-over-year to 5,034 as of June 30, 2024[5] - Secured the first 8-figure ARR customer through a significant contract expansion with an existing client[2][5] Key Business Metrics (as of June 30, 2024) | Metric | Q2 2024 | Q2 2023 | Note | | :--- | :--- | :--- | :--- | | Customers with ARR >$100k (count) | 383 | 355 | +8% YoY | | NRR for Customers with ARR >$100k (%) | 109% | N/A | Increased from Q1 2024 | | Overall NRR (%) | 99% | N/A | Increased from Q1 2024 | | Remaining Performance Obligations (RPO) ($) | $216.6M | $174.8M | +24% YoY | - Acquired 42matters AG, a leading app intelligence provider, on July 1, 2024, to enhance its offerings[6] Financial Outlook This section outlines Similarweb's financial projections for Q3 and full-year 2024, reflecting confidence in continued revenue growth and profitability Q3 2024 and FY 2024 Guidance Similarweb raised its full-year 2024 guidance for revenue and non-GAAP operating profit, projecting continued growth acceleration into Q3 2024 Q3 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue ($) | $62.5M - $63.0M (~15% YoY growth) | | Non-GAAP Operating Profit ($) | $2.8M - $3.2M | Full Year 2024 Raised Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue ($) | $246.0M - $248.0M | | Non-GAAP Operating Profit ($) | $13.0M - $15.0M | Consolidated Financial Statements (Unaudited) This section presents Similarweb's unaudited consolidated financial statements, including balance sheets, income statements, and cash flow statements for the reported periods Consolidated Balance Sheets As of June 30, 2024, Similarweb's balance sheet reflects total assets of $222.3 million, with cash at $61.8 million and increased deferred revenue Selected Balance Sheet Data (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents ($ thousands) | $61,791 | $71,732 | | Total current assets ($ thousands) | $129,397 | $146,385 | | Total assets ($ thousands) | $222,254 | $239,013 | | Deferred revenue (current) ($ thousands) | $108,000 | $99,968 | | Total liabilities ($ thousands) | $198,811 | $223,466 | | Total shareholders' equity ($ thousands) | $23,443 | $15,547 | Consolidated Statements of Comprehensive Income (Loss) For Q2 2024, the company reported $60.6 million in revenue, a 79% gross margin, and significantly reduced GAAP operating and net losses Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenue ($ thousands) | $60,613 | $53,681 | | Gross Profit ($ thousands) | $48,093 | $41,106 | | Total operating expenses ($ thousands) | $49,046 | $50,863 | | Loss from operations ($ thousands) | $(953) | $(9,757) | | Net loss ($ thousands) | $(738) | $(9,293) | Share-Based Compensation Total share-based compensation for Q2 2024 was $4.5 million, primarily allocated to General and Administrative and Research and Development Share-Based Compensation by Department - Q2 2024 (in thousands) | Department | Q2 2024 SBC | | :--- | :--- | | Cost of revenue ($ thousands) | $223 | | Research and development ($ thousands) | $1,357 | | Sales and marketing ($ thousands) | $806 | | General and administrative ($ thousands) | $2,072 | | Total ($ thousands) | $4,458 | Consolidated Statements of Cash Flows In Q2 2024, Similarweb generated $7.3 million in operating cash flow, resulting in positive free cash flow of $6.3 million Cash Flow Summary - Three Months Ended June 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities ($ thousands) | $7,344 | $(2,305) | | Net cash used in investing activities ($ thousands) | $(1,154) | $(500) | | Net cash provided by financing activities ($ thousands) | $941 | $1,098 | | Net increase (decrease) in cash ($ thousands) | $6,901 | $(2,369) | Reconciliation of GAAP to Non-GAAP Measures This section provides a reconciliation of Similarweb's GAAP financial measures to their corresponding non-GAAP counterparts, highlighting key adjustments Reconciliation of Gross Profit Non-GAAP gross profit for Q2 2024 was $49.5 million, resulting in an 82% non-GAAP gross margin after adjustments for non-cash items GAAP to Non-GAAP Gross Profit Reconciliation - Q2 2024 (in thousands) | Line Item | Amount | | :--- | :--- | | GAAP gross profit ($ thousands) | $48,093 | | Add: Share-based compensation ($ thousands) | $223 | | Add: Amortization of intangibles ($ thousands) | $1,138 | | Add: Retention payments ($ thousands) | $25 | | Non-GAAP gross profit ($ thousands) | $49,479 | Reconciliation of Operating Income (Loss) GAAP operating loss of $(1.0) million was reconciled to a non-GAAP operating profit of $5.3 million, reflecting a 9% non-GAAP operating margin GAAP to Non-GAAP Operating Income Reconciliation - Q2 2024 (in thousands) | Line Item | Amount | | :--- | :--- | | GAAP Loss from operations ($ thousands) | $(953) | | Add: Share-based compensation ($ thousands) | $4,458 | | Add: Amortization of intangibles ($ thousands) | $1,227 | | Add: Retention payments ($ thousands) | $591 | | Non-GAAP operating income ($ thousands) | $5,323 | Reconciliation of Free Cash Flow Free cash flow for Q2 2024 was positive at $6.3 million, derived from $7.3 million in operating cash flow less capital expenditures Free Cash Flow Reconciliation - Q2 2024 (in thousands) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities ($ thousands) | $7,344 | | Less: Purchases of property and equipment ($ thousands) | $(540) | | Less: Capitalized internal use software costs ($ thousands) | $(469) | | Free cash flow ($ thousands) | $6,335 |