Similarweb(US:SMWB)2024-11-12 21:05Financial 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]